IRS Says Online Accounts Have Most Up-to-Date Advance Child Tax Credit Amounts
The IRS is advising taxpayers to look to their IRS Online Account for the most up-to-date amounts of the advance Child Tax Credit (CTC) to include on their tax returns instead of the amounts in the letters it has been sending.
The IRS has been sending Letter 6419 to families listing the amounts they received for the advance payments of the CTC, which was expanded last year as part of the American Rescue Plan Act, as well as Economic Impact Payments. The IRS cautions that the amounts in the letter may be incorrect, particularly if a family moved in December 2021 or if a check or direct deposit was undeliverable.
In a recently posted fact sheet on the advance CTC, the IRS states that the correct amounts will be listed in taxpayers’ online accounts on Monday, Jan. 31. As the IRS is beginning to use taxpayer authentication technology for accessing online accounts, some taxpayers will need to submit a selfie and a government-issued document to access their account.
The IRS also says that letters to taxpayers who filed as Married Filing Jointly are being sent to each spouse separately and listing only their half of the payments received, so these taxpayers will need to combine the information from both letters when they file their joint return. If the total of the amounts in the two letters is different from the total in their online account, taxpayers should use the total in the online account.
To report the correct information on a tax return, the IRS advises taxpayers to compare the total amount of advance CTC payments received during 2021 with the amount of the CTC they can claim on their 2021 tax return. To do this, taxpayers should find the advance payments total and number of qualifying children in their IRS Online Account and enter the information when prompted by their tax software or on Schedule 8812 of Form 1040.
The Biden administration recently relaunched the CTC website with new tools to assist taxpayers. The new features include a tool that directs taxpayers to the best free filing options, including options with both virtual and in-person support in multiple languages, based on their answers to basic questions. Additionally, the website features other information about the CTC, including eligibility and how to obtain the credit.