HomeNewsTax Season Glitch: Why Your IRS Child Tax Credit Letter May Be Inaccurate

Tax Season Glitch: Why Your IRS Child Tax Credit Letter May Be Inaccurate

by Shelby Scott
(Photo by Zach Gibson/Getty Images)

Since the coronavirus pandemic began, the IRS has faced much backlash as its disbursement systems face repeated delays and glitches. Now, as we enter the 2022 tax season, Outsiders are facing the first glitch of the New Year. And it has already begun to cause major financial stress for parents especially.

This year, many American families nationally received the advance child tax credit payments. Monthly disbursements took place between July and December of last year. With that, the IRS began sending out Letter 6419.

As per the IRS, Letter 6419 lists the total amount of 2021 child tax credit payments. It also details the number of qualifying children used to calculate the year’s advance payments. With the letter, tax filers should use the calculations to determine the total amount remaining they can claim for 2021.

Theoretically, the purpose of the letter is straightforward. However, the Detroit Free Press states handfuls of American families may face further difficulties when filing. Now, the government agency has received multiple reports of incorrect totals listed on Letters 6419.

According to the outlet, the IRS has begun to review complaints regarding the letters. Tax filers report their letter spells out the wrong dollar amounts of what they actually received during the six-month disbursement period.

This causes problems for American families as the incorrect totals may short tax filers the actual amounts they are due. Fortunately, as the outlet reports, it’s still early enough in the tax season for these mistakes to be corrected. The IRS addressed the glitch during a call with media on Monday.

How to Read the IRS’s Letter 6419

For those struggling to navigate Letter 6419 in connection to filing taxes, the news outlet shared a little information as to how the numbers become broken down and how tax filers should go about inputting those numbers.

Basically, the letter details two main components used to determine American families’ child tax credit disbursements throughout 2021.

First, Box 1, located at the top of the letter, tells tax filers the total dollar amount of funds the individual should have received between July and December of last year. Be sure to enter that amount in the category, Schedule 8812 when filing. It will be labeled as “Credits for Qualifying Children and Other Dependents” on either line 14f or 15e.

In Box 2, those who received Letter 6419 will see the number of qualifying children utilized to determine the amount listed in the previous box.

Hopefully, most of you Outsiders have managed to avoid the IRS glitch as tax season can already be stressful enough. However, for those concerned, IRS Commissioner Chuck Rettig informed journalists during the Monday call the overall total errors is likely limited.

During the same call, he shared he was “highly confident that [total errors reach] nowhere near millions or hundreds of thousands.”

That said, this wouldn’t be the first IRS glitch and we can only hope the error is resolved in a timely manner for all affected Outsiders.