By Marca English, US News, 12/13/2021
The final weeks of the year mean that tax season is almost upon us, so there are some things that you can do to make your life a little easier before it is time to file your tax return next year.
Some programs, like Economic Impact Payments and advance Child Tax Credit payments, need to have action taken in December. Therefore, it is best not to wait too long in these cases.
Advance Child Tax Credit payments
If you received the advance Child Tax Credit payments in 2021, you will need to compare this with the Child Tax Credit amount that you are able to claim on your 2021 tax return.
If you received less than what you were expecting to get, you will be able to claim a credit for the outstanding Child Tax Credit amount on your 2021 tax return.
Conversely, if you received more than what you were expecting, you may need to repay some or all of the payment when it comes time to file.
January 2022 will see the IRS sent out Letter 6419, which will tell people how much they received in terms of Child Tax Credit payments in 2021.
Those eligible families that did not take up the option to receive monthly Child Tax Credit payments will be able to receive a lump-sum payment when they hand in their 2021 federal income tax return next year.
Economic Impact Payments
Those individuals who did not qualify for the third Economic Impact Payment or only received a partial amount could be eligible when it comes to the Recovery Rebate Credit, which is based on the information you provide in your 2021 tax return.
In order to receive the credit, though, you will have to file your 2021 tax return, even if you usually don’t hand one in. (https://www.marca.com/en/lifestyle/us-news/2021/12/13/61b772b4268e3e7d558b45c5.html)