Advanced Child Tax Credit and Your 2021 Tax Return

For the upcoming 2021 tax season, when you begin to gather your tax documents, watch for a letter from the IRS titled, Letter 6419. This letter is a vital document for the 2021 tax return filing. It is a necessary document for anyone who received advance payments of the 2021 Advance Child Tax Credit.

Advanced Child Tax Credit |

With the passing of the American Rescue Plan Act (ARPA) of 2021, the Child Tax Credit (CTC) allows for early payments of up to half the credit. Eligible families were able to receive advanced monthly payments from July through December. Any person or married couple filing jointly, with a qualifying child under age 18 by the end of 2021 and has a valid Social Security number was eligible to receive the advance payments. The payment was sent directly to families for six months. If desired, each family could opt out of the automatic payment and receive the tax credit when they file their tax return. 

For those who opted to receive the advanced payments, to accurately determine how much child tax credit they can claim on their returns, families will need to compare the advance payment that they received in 2021 with the amount of the child tax credit that they can claim on their 2021 tax return.

In January 2022, people will begin receiving Letter 6419 from the IRS. Why do you need this letter? The document will contain the necessary information regarding the total amount of the advanced child tax credit they have received. This information will allow proper calculation of any remaining child tax credit.

If you received Advanced Child Tax Credit payments, this Letter 6419 is necessary for filing your 2021 tax return. It will ensure that the processing of your return is accurate and that your refund arrives in your bank account as quickly as possible.

What is the IRS Letter 6419?

Like your W-2, letter 6419 is an official tax document. It will have important information for your to file your tax return.

  • It contains the total amount received in 2021 Advance CTC payments.
  • The amounts received will be included on your return using Schedule 8812.
  • It contains the number of qualifying children in your family eligible for the Advance CTC.
  • The letter contains details about how the IRS determined the amount of your Advance CTC.

What if I Do Not have an Advanced Child Tax Credit Letter 6419?

If you are ready to file your tax return but are missing this letter and did receive payments from the Advance Child Tax Credit, you can get the information through the IRS Child Tax Credit Portal.

Go to the portal linked above, click: Manage Advance Payments, and create a new account. Once you have an account, follow the account prompts to set up your account. The IRS system may ask you to upload a photo ID, or create a video, to ensure the correct person is receiving the information. This step is for your protection to help you create a secure account. Once you have an account, you can access the needed information.

Once you’ve created an account, you can access the portal at the link directly above.

What you need to do to file your 2021 Tax Return:

  • Gather all necessary tax documentation, including IRS Letter 6419.
  • If you are processing your own return, you will need to add Schedule 8812.  
  • Or, schedule your appointment with Cowdery Tax and Business Services so that we can assist you with the proper processing of your tax return.

This information is not intended as legal or tax advice. Cowdery Tax and its representatives does not offer legal or tax advice. We offer services for business bookkeeping, payroll, tax payments, and personal tax filings. We share information that is publicly available. Tax laws may change with or without notice that may alter or change the information contained in this publication.


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