Did You Receive an Economic Impact Payment in 2021 or Advance Child Tax Credit? If So, Set Up an Account with the IRS to Get a Timely Refund!




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Jan 01, 2022

By Robin Jackson Miller, EA Partner at Terry Lockridge & Dunn

Robin Jackson Miller.jpgMillions of Americans received a third Economic Impact Payment in 2021 as part of the American Rescue Plan Act of 2021.The maximum amount of the payments was $1,400 per adult and qualifying dependent if your adjusted gross income was under $150,000 married filing jointly, $112,500 as head of household, and $75,000 as single. You received a partial payment if your income was under $160,000 married filing jointly, $120,000 as head of household and $80,000 as single.

As your accountant, we will need to know how much was received and the amount reported must match with the IRS. The IRS will send letter 6475 to taxpayers in late January to provide the total amount of Economic Impact payments that were disbursed during 2021. Please include this letter when you submit your tax information.

Unfortunately, even as your accountant we do not have access to this information! Only you can set up an account with the IRS to make sure we report the correct amount on your return. A link to do this is below. If the amount reported on your tax return does not match IRS records, your refund will be delayed for three to six months.

https://www.irs.gov/coronavirus/get-my-payment

Also new this year was the Advance Child Tax Credit (CTC). The child tax credit was expanded for 2021 under the American Rescue Plan Act of 2021 and included a provision to receive 50% of this credit early. Those who were eligible started receiving monthly payments on July 15, 2021 and the payments continued monthly through December 2021.

As your accountant, we will need to know how much was received during 2021 and report this on your return. The IRS will send Letter 6419 to taxpayers to provide the total amount of advance CTC payments that were disbursed during 2021. Please include this letter when you submit your tax information.

If you do not receive this letter or misplace it, you will need to set up an account online to verify this information. Unfortunately, even as your accountant we do not have access to this information! A link to do this is below. If the amount reported on your tax return does not match IRS records, your potential refund will be delayed for three to six months.

https://www.irs.gov/credits-deductions/advance-chi...

To discuss your specific situation, please reach out to your accountant in Cedar Rapids at 319-364-2945 or in Iowa City at 319-339-4884.



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