2021 has been a bit confusing when it comes to the overall distribution of government funds. Many came from the IRS in the form of stimulus checks, child tax credits, earned income credits, and more. That said, it doesn’t look like 2022 will be awarding parents any new monthly child tax credit payments thus far. However, we do have information regarding money still owed to certain individuals. Read on for specifics.
According to The U.S. Sun, ongoing payments for American families have been halted for now. The stalling comes as President Biden’s Build Back Better Act did not pass the Senate in November of 2021.
Nevertheless, the outlet states there is still some help available for certain eligible families. Additionally, the IRS has issued important letters to families across the country who received child tax credit payments throughout 2021. So, if that applies to you, be sure to keep your eye on the mail.
As to the IRS letters’ arrival, families should look for a document entitled Letter 6419. Distribution of this paperwork began at the end of last month and should continue through January 2022. Overall, the letter encompasses information regarding monthly child tax credit payments received over the last six months. That’s in addition to identifying the number of qualifying children that were calculated into those payments.
Factoring the Child Tax Credit Into Your 2021 Tax Returns
American families have always received funds for minor children on their annual tax returns. This year, however, may prove a little tricky. Letter 6419 will force parents to factor in the total sum they received over the last six months against the total they are eligible for on 2021 tax returns.
Fortunately, with the help of The U.S. Sun, we have information that will hopefully make filing a little easier.
American families that received all child tax credit payments between July and December can still expect to see up to $1,800 in their accounts for each child under five after filing their taxes. The same goes for families with children aged six to 17, however, the max total caps around $1,500.
Families that opted out of the monthly child tax credit payments can claim the full $3,000 to $3,600 as long as they file a 2021 return. The outlet states this includes families that don’t normally file.
Further, families who missed out on payments due to unenrollment from monthly disbursements or due to IRS error should expect to see those funds on their annual income tax return.
Finally, Americans should also hang on to the coming Letters 6419. These will tell you whether or not you owe the IRS. Reasons for this could be due to income changes that went unreported, overpayments from the government agency, or receipt of funds the individual/family was not actually eligible for.