The Internal Revenue Service will issue information letters to Advance Child Tax Credit recipients starting this month. It will also begin sending letters to recipients of the third round of the Economic Impact Payments at the end of January.The information is designed to assist recipients in preparing their 2021 federal tax returns.
Families that received payments must file a 2021 return and compare payments received in 2021 with the credit they can claim on their returns.
Letter 6475, Your Third Economic Impact Payment will help recipients determine if they can claim the Recovery Rebate Credit on their tax year 2021 tax return. The third round included “plus-up” payments, which were based on 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.
