You’ll receive Letter 6419 from the IRS in January 2022 if you received advanced child tax credit payments. The amount of advanced Child Tax Credit Payments you got in 2021 is detailed in this essential letter. Treat this letter as an important tax document because you’ll need it while preparing your 2021 tax return.
The child tax credit is determined when you file your federal tax return in most years. However, as part of the American Rescue Act in March 2021, three significant adjustments to the child tax credit were made—for the year 2021 only: 1) the credit was increased; 2) the child tax credit is now refundable for 2021, which means you won’t have to pay it back; and 3) Congress directed the IRS to give out half of the credit as an advance in monthly installments from July to December.
