Double-Check Your Child Tax Credit Calculations: Updated Guidance Released

How to Reconcile Child Tax Credit Payments on 2021 Tax Returns

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At the end of December 2021, the IRS began sending out Letter 6419 to provide information on the total amounts of the 2021 advance Child Tax Credit (CTC) payments and the number of qualifying children used to calculate the advanced payments, and the repayment protection when filing 2021 federal tax returns.

However, there is now a possibility that the letters from the IRS may not be correct, and taxpayers are being advised to double-check the information and whether it is different than stated in the letter received – as an adjustment may need to be made.

Suggested Guidance for Verifying Your CTC Numbers

Taxpayers may go online and check their Online Account or the CTC Update Portal to compare the information provided.

• If the information is different online than in the Letter 6419, we suggest that taxpayers provide a copy of both the Letter and PDF of their CTC Portal to their accountant to make the necessary adjustment.

Remember, taxpayers that are Married and Filing Jointly will receive two letters – one for each spouse. The letters will be combined on the joint tax return to show the full amount of advance CTC received and the full amount available to be claimed.

There is also guidance for taxpayers that are Divorced, Married and Filing Separately, with shared custody of children that should be noted and adhered to before filing. Note: the payment received by the ineligible parent may be required to be paid back.

Answers to FAQs regarding the 2021 Child Tax Credit and Advance Child Tax Credit Payments can be found on the IRS FAQs page.

Update: The U.S. Department of the Treasury and the White House announced the re-launch of a revamped website – ChildTaxCredit.gov – with several new features to help taxpayers file their taxes and access the remainder of the expanded Child Tax Credit (CTC) or the full amount of the CTC as tax filing season begins.

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