Hey boy, if you thought the last tax season was complicated, just wait — this year might be a veil. As the IRS continues to run through several million overdue 2020 returns, the 2021 filing season is now open, and Americans can start filing.
While preparing for filing and collecting your documents, keep an eye out for two letters from the IRS letter 6419 and letter 6475. Letter 6419 contains information about your Advanced Child Tax Credit Payments, the $ 300 or $ 350 that parents received per child per child. month from July to December, and Letter 6475 is all about that third pandemic stimulus test. Both are needed, so keep your eyes open for their arrival.
Unfortunately, the IRS reported that they are investigating mistakes made with IRS Letter 6419 – because taxation can just never be done easily.
Letter 6419 explains and how to decipher IRS errors: what happens?
IRS Letter 6419 should contains the total amount of money you received as part of the advanced payment program and the number of children for whom you received payments.
But! Unfortunately, because nothing can ever be simple, some people say the information on their letters is incorrect.
The number is significant because it determines the remaining amount of the Child Tax Credit that you will receive when you file taxes. A wrong number, one that says you received money you did not receive, can confuse your refund status, which means a lower refund or no refund. Parents who have not received the monthly payments but who have qualified for it will also have to claim the full refund of child tax credit on their tax when they submit.
The IRS is aware of the differences, and in a call with media representatives urged the public on Monday not to panic. “We are still looking at some of the information we heard about the information on the notices which is incorrect. We do not believe this is a widespread problem, “said Ken Corbin, the IRS’s chief taxpayer experience officer and payroll and investment commissioner.
IRS representatives suggested that parents with incorrect information about Letter 6419 log in to their IRS Web site accounts and double check. The website contains the most accurate CTC payment information.
Corbin urged taxpayers to “submit their most accurate return possible.” If your bank account shows deposit amounts that differ from the amount in Letter 6419, use the bank numbers when filing. If you use a tax expert, make sure you let them know about the discrepancy.
Most importantly, do not panic. Collect your documents, search your bank records, and do your own math. Talk to your tax expert and make sure all your boxes are checked. Congratulations, because it’s so early in the season that this little wrinkle will be ironed out and just another fun pandemic-time reminder.
Letter 6475: Stimulus check letter, explained
Letter 6475 will also reach mailboxes soon as the IRS plans to mail it in late January. This letter contains information about the third pandemic stimulus check, the only one received in 2021, and how to deal with it regarding your taxes.
While most people received their third stimulus check in March last year, those who did not do so may be eligible for a Repayment credit repayment on their taxes.
Letter 6475 describes how much you received, if anything, during the last round of stimulus and contains information regarding the RRC. Definitely stick to this one if you have not received your third stimulus payment, as the RRC can cut a healthy portion of the tax you owe.
The IRS began accepting returns yesterday, Monday, January 24th, and the last day to file is April 18th. As with last year, it is probably safe to expect delays, so file early and electronically. The IRS says that paper returns are more likely to be delayed than those that are e-filed.