The deadline to file your 2021 taxes is April 18th, 2022, the IRS encourages you to file early to avoid processing delays. Before you file your federal tax return be aware that there have been changes.
Child Tax Credit Payments
As you recall, in March of 2021 the American Rescue Plan expanded the Child Tax Credit for 2021. Eligible families were to receive a payment of up to $300 per month for each child living in the home under 6 years of age and up to $250 per month for each child ages 6 to 17.
The first advance payment was on July 15th, 2021, with half the credit paid in advance monthly payments and the other half claimed when you file your 2021 income tax return. The IRS will mail out Letter 6419 that includes the total amount of advance child tax credit payments you received in 2021. If you have not received the letter you can access it via the IRS by creating an account. You must have information on hand for your tax preparer as they will need correct amount to avoid errors on your return.
The values are accessible by clicking on the following link https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Economic Impact Payments
The American Rescue Plan Act of 2021 authorized a third round of Economic Impact Payments. The IRS sent payments to eligible individuals in March 2021 and throughout the year as tax returns were processed.
Individuals that met eligibility did not need to take additional action to get third stimulus payment. You should receive Letter 6475 from the IRS that contains the total amount of the third stimulus payment. You must have the correct amount on hand for your tax preparer to avoid errors or delays on your return. If you didn’t get a third Economic Impact Payment or got less than the full amount, you may be eligible to claim a Recovery Rebate Credit on your 2021 federal tax return. You can also click on the following link to gain access to the information by creating an account with the IRS.
Link to gain access for total amount of third stimulus payment https://www.irs.gov/coronavirus/get-my-payment
- are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
- are not a dependent of another taxpayer, and
- had adjusted gross income (AGI) that is not more than:
$150,000 if married and filing a joint return or if filing as a qualifying widow or widower
$112,500 if filing as head of household or $75,000 for any other filing status
- payments were phased out – or reduced – above those AGI amounts. This means people will not receive a payment if their AGI is at least: $160,000 if married and filing a joint return or if filing as a qualifying widow or widower; $80,000 for any other filing status
Amount of Third Economic Impact Payment
- $1,400 for an eligible individual with a valid Social Security number ($2,800 for married couples filing a joint return if both spouses have a valid Social Security number or if one spouse has a valid Social Security number)
- $1,400 for each qualifying dependent with a valid Social Security number
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