We have had another difficult year. The pandemic is still wreaking havoc, and the impact its had on our economy worries us. So all possible help is welcome.
Parents had the possibility of receiving credit advances for minors. However, tax season has already begun and many are realizing that what was once useful is affecting their refund. Why?
The Child Tax Credit gives families money to help raise their children. For fiscal year 2021 it was increased to $3,000 per child under 18 and up to $3,600 per child under six. And for the past year the IRS has sent part of it as monthly payments from July through December 2021.
However, in recent weeks a letter from the IRS has arrived to all those who received some money through this means: What is this letter? What does it mean?
The letter, with code 6419, informs families of essential information for their tax preparation. Including the total amount of credit you received in 2021 and the number of qualifying children counted in determining the credit. This information has to be included in your taxes, and if you don’t, your return will be withheld, and your refund will take months since the IRS will have to manually review your case.
It means that if you do not enclose your letter, the refund amount will not be what your preparer tells you. So excluding or omitting this information is not going to help you in any way. It will only take time and in the end you will receive the amount that corresponds to you.
But that is not the only problem. As the letter says, if you received the credit and you are not eligible, and I quote “YOU MUST PAY SOME TO ALL OF THE MONTHLY PAYMENTS YOU RECEIVED IN 2021”
The letter itself explains how they calculated that:
The monthly payment amounts were initially based on information from an income tax return you filed or information you entered in the IRS Non-filer sign-up tool in 2020 or 2021. The amount of your monthly payment, or how or where the IRS made your payment, may have changed based on the information you provided the IRS with your 2020 income tax return if the IRS filed it after June, the Income Tax Portal Child Tax Credit update, or the specific IRS Child Tax Credit hotline.
This means that you may end up paying or your reimbursement will be much less than in previous years.
However, there are certain resources that can help you reduce that and even recover that credit if you did not receive it. If you have this problem, call MARRERO BERNAL & ASSOCIATES at 1-833-MARRERO (1-833-627-7376).
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