Eligible taxpayers who received six monthly child tax credit payments from July to December 2021 will still get the second half of their total credit if they file their income tax return before the April 2022 deadline.
With tax season underway as of Monday, January 24, parents may now file early and claim the rest of their $1,800 child tax credit money. However, some moms or dads may get more if they opted out of the monthly payments or had a new baby in late 2021.
According to CNET, taxpayers who met the IRS income eligibility requirements could expect a payment of $1,800 per child age five years old and below or a payment of $1,500 per child from six to 17 years old. Those who opted out during the monthly distributions last year could get lump-sum credits between $3,000 to $3,600, depending on their kids' ages.
IRS Letter 6419
However, to ensure that the parents receive the correct final lump sum payment, they should get Letter 6419 from the Internal Revenue Services (IRS) before filing their tax return. This document, mailed via the postal service, contains pertinent details of the taxpayer's child credit status, so parents do not have to guess how much they received during the monthly roll-outs.
The parents should also complete Schedule 8812 and fill out Form 1040 to get the lump sum payment once the tax returns are submitted. Ideally, the IRS recommends filing electronically and requesting a direct deposit on their nominated bank account to expedite the process.
"If taxpayers need a refund quickly, we are urging them to not file on paper," IRS Commissioner Chuck Rettig said.
According to the IRS, the distribution of Letter 6419 started in late December and should be completed by January 2022. However, the agency acknowledged that some of the letters might have incorrect information, affecting the processing of their tax returns.
Specifically, Ken Corbin of the IRS said that taxpayers who changed bank accounts or addresses in December could be affected by the incorrect information on their Letter 6419. He advised the concerned parents to check their profiles on the IRS portal as this will reflect the updated and corrected details.
Families who welcomed new babies in late 2021, whether through natural birth, surrogacy or adoption, might also have some incorrect issues with their payments. They will need to update the portal to claim the lump sum credit for the new child.
Refund Within 21 Days
If there are no flags or issues with the filed tax returns, the parents may expect their child tax credit payments and other tax refunds within 21 days if they did this online. There is no estimated number of days for those who will file the traditional way on paper.
However, parents must also note that the IRS will not start issuing refunds for child tax credit payments until mid-February. If they are filing early online, the 21 days processing time will not apply. Tax season will end on Monday, April 18.
