You May Need IRS Letter 6419 & IRS Letter 6475 to Do Your 2021 Tax Return
The IRS will start mailing 2 letters that many tax payers may need in order to complete their 2021 tax return. These are IRS Letter 6419 concerning the Advance Child Tax Credit and IRS Letter 6475 for IRS Stimulus Payments received in the tax year 2021.
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The IRS says that by the end of January of 2022, many of you are going to get two letters in the mail from the IRS, and you’re going to need these two letters in order to file your 2021 personal tax return. So don’t throw them away. That’s what we’re going to talk about in this video.
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Now, this week the IRS sent out a new report saying that by the end of January 2022 they are going to start sending two letters that many of you are going to get in the mail and don’t throw them away because your tax preparer is going to need these letters, in order to finish your 2021 personal tax return work. To talk about this topic, I’m going to bring in my coworker Robert.
Carlos H: Robert, how are you?
Robert A: Fine, thank you Carlos, thank you for having me with you today. And yeah, we’re definitely ready for tax season.
Carlos H: Very good. Robert is our tax expert here at freedom tax accounting. Robert, how many years have you been doing this now?
Robert A: Wow, a bit while now, since 2003 we’ve been doing taxes.
Carlos H: So, it’s 18 years now.
Robert A: Yes, sir.
Carlos H: You’re getting old, man. Robert is our super expert here on personal taxes and other tax related issues at FreedomTax Accounting. So, Robert as you know this week, we got a notice from the IRS that by the end of January 2020, many taxpayers are going to get two letters in the mail from the IRS and that they need these letters to provide these letters to their tax preparer in order to finish their 2021 tax work. What do we need to know about these letters?
Robert A: Well, yeah, it’s you, know, big news and something that the majority of the public needs to be aware of. In the past when people thought about filing their tax returns, for the most part as long as you had your W-2, maybe you were a homeowner and you received a statement from your bank letting you know how much interest and property taxes you paid, or maybe you had some other source of income. Well, we were all used to waiting to get these forms in the mail and then go and file our taxes. Well, because of everything that’s been going on, obviously, during the past couple years, like the government assisting with the stimulus payments that a lot of people had received, we all remember last year was the first year that, when filing tax returns, most Americans received first and the second stimulus payment. Well, those things had to be reconciled and addressed when the tax returns were being prepared. A lot of people also received these letters, so the IRS is doing it again.
But this year it’s a little bit different, because back in March of 2021 the government and the Congress put through the assistance, the US rescue plan act, the passed March; part of what that put into place was assistance and enforcing or incrementation of the child tax credit.
The Child tax Credit is a credit that’s nothing new. It’s been there for a good number of years now. And pretty much, if you have kids and they are under 16, you could possibly qualify for this credit. Well, assistance was given to increase this credit to $3000 for children who are under 17, and up to $3600 for children under 6 years old.
That increase of the credit, the government started it back in the summer, but they started sending advances of that credit, and most people, most taxpayers, most families, receive the credit, but a lot of folks, this is something completely new, didn’t keep track of it, right? And I know from clients of ours who have called us and let us know that the amounts varied. So, the IRS wants everybody to be aware that this is going to be key when you come and do your taxes for this year, you have to know how much you received through December of last year, because when you come into your taxes you have to enter in how much you receive.
Carlos H: So that’s the way that the government is reconciling with whatever tax return we send in.
Robert A: Correct, because a lot of people are going to do their diligence, right? Maybe a lot of people know how much they got each month, but some people may not, right? So, the IRS wants us to have a reminder, right? And that’s the main purpose of these letters. It’s going to be called letter 6419; so, we’re very much looking forward to it. From everything that we’ve read in the notice from the IRS, those letters are going to start coming out at the end of January. The IRS has yet to announce when they’re going to start accepting the 2021 tax returns but based on that they’re going to start sending these letters at the end of January, we would expect that tax filing season is going to start probably at the end of January early February mostly.
Carlos H: Well, Robert, we’ve been doing this for more than 20 years. We know that when the IRS says, we’re going to send out this letter by the end of January, we may get them in May. Is there any way that people can access this information online or do they have to wait for the letter?
Robert A: So, great question, Carlos. There is a way; the IRS does understand that things can happen. maybe somebody moves, maybe the IRS doesn’t have their current address, right? Maybe something got lost in the mail. So, yes, the IRS will have a website, a portal. We’re going to link it right below for our listeners to access it and be able to go online, you know, go through the IRS security measures to identify that it is you who is giving that information; they’ll be able to access that portal to get the same information that’s going to come in the form of a letter.
Carlos H: We are providing a link to that IRS online portal in the description of this video. So, Robert, that’s letter, 6419, that’s the letter for the child tax credit, but that’s a second letter as well.
Robert A: Correct. It’s called letter 6475. That’s the second letter that you mentioned, which is for the stimulus payments. There’s been a lot of payments and a lot of stimulus help, thankfully; a lot of Americans were in need of that assistance and we’re thankful for that. But as our clients and most people remember, last year when you filed your taxes, that also had to be reconciled. So, most people received that first and second stimulus that was mailed out in 2020 with no issue, but some folks, for whatever reason, did not receive it, right? So, those folks were able to claim that on their 2020 return. Same thing is going to happen because if we all remember there was a third stimulus payment that was mailed out around the summer of 2021.
Carlos H: Yes, I think people need to know the importance of these letters is that this is what the government has on your file, the government says that they have sent you these stimulus payments and that you have received this amount of child tax credit, and the benefit for the taxpayer is that the government may owe them more than what they received.
Robert A: Correct, because, you know, I’ll give you myself as an example, right? I have twin boys 13-year-olds that qualify for this credit. Ever since they were born, every year they have qualified for the child tax credit. So, it’s something that we have claimed automatically in each year’s return, right? But this year they’re over seven years old, so they keep qualifying for the child tax credit, but there was an increase of $1000 through each, right? Now the child tax credit for 2021 is $3000 per child.
So, what the IRS did is that that increase, that extra $1000 per child, they made it available to parents as an advance during the year, in monthly installments. But they didn’t send out the whole $3000 per child, it was only the additional increase, $1000 per child, that was mailed out to parents.
Carlos H: Exactly.
Robert A: Why do I use myself as an example? Because when I heard about this, I wanted to elect not to receive it, right? You could not receive it in advance, but I forgot to do the same thing for my wife.
Carlos H: And the reason you didn’t want to get it in advance is that you wanted to claim the entire credit when you did your tax return. You didn’t want to get it in advance.
Robert A: Correct. So, there’s going to be some folks who were aware of what was going on, and maybe they went online and elected to say, “Hey, IRS don’t send me that advance upfront”.
Carlos H: That’s what you did?
Robert A: That’s what I did, but I forgot to do it for my wife. So, somebody like myself, if somebody is in my same position, it’s key and important to make sure that you have that letter, because that partial amount that I received during the year for my wife half, when we file again jointly together, I have to make sure that I put the correct amount that was received as an advance, so that there’s no issue, right? So that it matches with what the IRS has and there’s more delay.
Because remember, we only received a partial amount, there’s still more child tax credit than that we can claim with the tax return. And if we don’t do it the proper way, which is what we want, why we’re doing this today, we don’t want our clients who are listening to go through delays. Last year, we saw clients who told us, not clients of ours, but other people, usually people after they had already filed, calling us and saying “Hey, listen, we haven’t received a refund. I went to this person, or I filed my taxes online by myself, and I’m still waiting. What’s going on”, and a lot of them is because it’s related to those stimulus payments that you talked about that they didn’t get the letter, or maybe they weren’t aware of what was supposed to happen of that reconciliation that was supposed to be done, and that caused delays in the IRS processing the refund.
So, the same thing is happening this year. We have to make sure to reconcile that information correctly, so as to avoid delays in the issuing of the refunds.
Carlos H: Perfect. So, if you got stimulus payments in 2021 and if you got child tax credit in 2021, then you could get these letters; and if you don’t get them, then go to the online portal, Child Tax Credit Update Portal | Internal Revenue Service (irs.gov), which we’re also going to provide the link in the description of the video, so you can access that information directly from the IRS and you can take that information either to us or to your tax preparer, so that way you don’t delay your refund.
Robert A: That’s correct. The people who receive the advance of the child tax credit should be getting this letter. If you selected not to receive any advance, then don’t expect the letter 6419, because you didn’t receive any advance. If you haven’t received your third stimulus payment, then you will get a letter saying, “Hey, you didn’t get it. You can claim it now.”
Carlos H: Perfect. So now you know, be on the lookout for these two IRS letters, if you didn’t get them.
Robert, thank you for the great information.
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