Here's What You Need To Know About the Child Tax Credit Before Tax Season

Here's What You Need To Know About the Child Tax Credit Before Tax Season

The IRS sent erroneous Child Tax Credit letters to many American families. 

The tax filing season just got a bit more complicated due to the enhanced child tax credit payments.

From July to December 2021, the federal government provided eligible parents as much as $3,600 for a child under the age of six and up to $3,000 for children between the ages of six and seventeen. This meant that a $250 or $300 payment for each child was given to parents each month.

However, that is only half of the total amount of payments. According to a report from CNBC, “If you were eligible to collect the advanced child tax credit monthly payments in 2021, keep your eye out for a special letter (6419) from the IRS this year that may entail more money coming your way.”

The report added that the letter will offer details about “how much of the child tax credit you’ve already received. Filers can then use that information to fill out Schedule 8812 (and Form 1040) in order to receive the other half of the credit when they file their 2021 tax returns.”

Erroneous Information

Some of those letters may also have included incorrect information, the IRS warned on Monday. To remedy this error, the agency is in the process of sending out letters to parents who received the enhanced credits last year.

“The erroneous information could have a severe impact on some families’ finances, given that the IRS is advising taxpayers to take extra care this year that their tax returns are accurate,” CBS News noted.

The CBS report added that “a tax refund is often the biggest check a family receives each year, with payments in 2021 averaging about $2,800. That means there’s a lot on the line if a family misreports the amount they received in their advanced CTC payments. A processing holdup at the IRS could result in refunds being delayed for weeks or even months.”

Ken Corbin, the IRS’ chief taxpayer experience officer, told reporters on Monday that concerned taxpayers are able to go to the IRS website and log into their account through the site. He confirmed that the website will have the correct information that taxpayers should use on their federal tax returns.

“We want taxpayers to have the info they need to file an accurate return,” Corbin stated.

Revamped CTC Website

Meanwhile, the federal government has launched a new website to help individuals who were eligible for the expanded child tax credit claim the second half of the payments.

The website—ChildTaxCredit.gov—features a new tool that directs people to filing options, eligibility information, and instructions on how to receive the enhanced credit, according to the Treasury Department.

“As tax filing season begins, Treasury’s priority is ensuring that eligible families are able to receive the full Child Tax Credit,” Deputy Secretary of the Treasury Wally Adeyemo said in a statement.

“This relief has helped families pay for essentials when they needed it most and by getting the second half, or the full amount, of the credit millions of children can continue to benefit,” he continued.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.