In News Release IR-2021-255[1] the IRS gave information on the letters that will be sent to taxpayers documenting the amounts of the Advance Child Tax Credit and third round of Economic Impact Payments that will provide information necessary to complete the taxpayers’ 2021 individual income tax returns.

The letters that taxpayers will receive are:

Letter 6419, 2021 Advance CTC
Letter 6475, Your Third Economic Impact Payment[2]

The release states “[t]he IRS urged people receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.”[3]

Advance Child Tax Credit Letter

The release provides the following information on the letter to be sent regarding advance payments of the Child Tax Credit made in 2021:

To help taxpayers reconcile and receive all of the Child Tax Credits to which they are entitled, the IRS will send Letter 6419, 2021 advance CTC, starting late December 2021 and continuing into January. The letter will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.[4]

The release explains why this information will be important to retain for use in preparing 2021 individual income tax returns:

Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.

The letter contains important information that can make preparing their tax returns easier.[5]

The IRS release also notes that the IRS will, in addition to sending this letter, provide a website[6] where taxpayers can obtain the amount of advance payments received in 2021.[7]

Third Economic Impact Letter

The release also contains information about the Third Economic Impact Payment:

The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.[8]

This letter will not contain all payments a taxpayer has received for Economic Impact Payments during 2021. The second round of Economic Impact Payments issued in early 2021 were reported and reconciled on the 2020 income tax return. For 2021 returns, only payments related to the round of payments authorized by the American Rescue Plan Act are relevant:

Letter 6475 only applies to the third round of Economic Impact Payments that was issued starting in March 2021 and continued through December 2021. The third round of Economic Impact Payments, including the “plus-up” payments, were advance payments of the 2021 Recovery Rebate Credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from SSA, RRB or VA; or to people who may be eligible for a larger amount based on their 2020 tax return.[9]

As with the CTC letter, the IRS points out the importance of this information found in the letter:

Like the advance CTC letter, the Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return.[10]

[1] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021, https://www.irs.gov/newsroom/irs-issues-information-letters-to-advance-child-tax-credit-recipients-and-recipients-of-the-third-round-of-economic-impact-payments-taxpayers-should-hold-onto-letters-to-help-the-2022-filing-season (retrieved December 22, 2021)

[2] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[3] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[4] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[5] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[6] https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

[7] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[8] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[9] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021

[10] “IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience,” IR-2021-255, December 22, 2021