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Have you received Letter 6475 from the IRS yet?
The Internal Revenue Service began issuing them in late January, and they contain details about your 2021 Economic Impact Payment.
The IRS letter can help you to decide if you are owed more money and if you are eligible to claim the Recovery Rebate Credit on your 2021 tax return. Even if you are not owed additional money, you'll still need the letter to report any stimulus payments on your taxes.
If you received stimulus money at various points during the year, you might have more than one notice. Letter 6475 gives you a total dollar amount.
If you received the advance child tax credit payments, you'll also need another letter before filing your taxes: IRS Letter 6419. However, be warned, some letters have been found to contain inaccuracies, so you will need to confirm your letter is correct.
The IRS have advised individuals to check the amount of their payments in their Online Account, which has to be set up on IRS.gov, in addition to the letters for both stimulus payments and child tax credits.
Third stimulus payment
Most received their third stimulus payments in March 21. The IRS also issued what were called "plus up" payments – or extra money in addition to the initial direct deposit or stimulus check issued last year .
The third stimulus payment was viewed as money you received in advance of the Recovery Rebate Credit that you might be eligible to claim on a 2021 federal income tax return.
How much is the Recovery Rebate Credit for 2021?
You need to file a 2021 federal income tax return to claim the Recovery Rebate Credit if you're owed more money.
The maximum Recovery Rebate Credit on 2021 returns amounts to $1,400 per person including all qualifying dependents claimed on a tax return. A married couple with no dependents, could qualify for up to $2,800.
How we can help
It's never too early to get ready for the tax-filing season ahead. If you need help or advice with your finances, contact us today for a free initial consultation. TaxAssist offers an expert professional advisory service. Inquire online here to book your free, no obligation consultation.
Date published Feb 4, 2022 | Last updated Jul 8, 2022
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