The IRS is almost done with sending the stimulus checks, and now, it is sending the letters that will help individuals file their tax returns. Some people, however, can still get coronavirus stimulus checks in the form of the Recovery Rebate Credit, using one of the letters that the IRS will send. The IRS letter will specifically help people claim the Recovery Rebate Credit.
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Those who received the third stimulus check of up to $1,400 last year should soon be getting a letter from the IRS. The IRS is expected to start sending the letter out sometime in late January, and is asking people to keep this letter safe.
“These letters can help taxpayers, or their tax professional, prepare their 2021 federal tax return,” the agency said in a press release.
This letter, labeled "Letter 6475" and called "Your Third Economic Impact Payment," carries details of the stimulus money you got last year, including any plus-up payments. The plus-up payments were the additional payments that the IRS sent to people who got the third check on the basis of their 2019 tax return or the information from SSA, RRB or VA, or to those who were eligible for a higher payment on the basis of their 2020 tax return.
Taxpayers can use the Letter 6475 to determine if they are eligible for, or can claim the Recovery Rebate Credit. The Recovery Rebate Credit is the difference between the amount of the third stimulus check you were eligible for on the basis of your 2021 tax return and the money you actually received.
“This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022,” the IRS says.
So, if you were eligible for a third stimulus check but never got it, or if your circumstances changed in 2021, such as you had another child in 2021, then you could be eligible for a Recovery Rebate Credit. The IRS letter also details the process to claim the Recovery Rebate Credit.
IRS Sending Another Letter To CTC Recipients
Separately, the IRS is sending another letter to recipients of the child tax credit. This letter, labeled "Letter 6419," carries details of the advanced child tax credit you received, including how much money you got, calculation of the child tax credit and more.
"Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return." the IRS says.
Families can use this letter to claim the balance of their child tax credit. The IRS started sending the child tax credit letter in December, and will continue to send them through the first part of this year.
