January 21, 2022
Various tax measures have been implemented in the United States to provide relief to the taxpayers affected by COVID-19 since 2020. In 2021, the third Economic Impact Payment (EIP or also known as Stimulus Check) and the Advance Child Tax Credit were introduced. As you know, EIP 1 and 2 were paid to the taxpayers during 2020 and EIP 3 was paid during 2021. Some taxpayers received the EIP 3 around January 2021, while others received it around August. As for the Child Tax Credit, half of the credit amount was advanced to the eligible households beginning July through December monthly. But some taxpayers had received one-time check payments.
The correct amounts of EIP 3 and Child Tax Credit are determined based on the income reportable on the 2021 tax return to be prepared in 2022. Therefore, if there is an excess or deficiency in the amount paid in advance during 2021, the difference can be reconciled on the 2021 tax return. But to do that, it's important to know the exact amounts paid during 2021. Therefore, TOPC has been encouraging the taxpayers to create an IRS online account since last year. This newsletter summarizes how to set up an IRS online account and how to view the amounts of EIP 3 and advance payments of the child tax credit.
IRS online account
At the end of last year, the IRS introduced a new way to set up an IRS online account with "ID.me". If you already have an IRS online account that was created without using ID.me, IRS’s website warns that you will not be able to use the username and password beginning the summer of 2022. Hence we recommend creating an account with ID.me as soon as possible. You can create an IRS account from the link below.
https://www.irs.gov/payments/your-online-account
How to view payment amount of EIP 3
Open your IRS account and click on the "Tax Records" tab. See the amount of Economic Impact Payment 3 in 2021.
How to view Advance Child Tax Credit Amounts
There are two ways to view the Advance Child Tax Credit Amounts. One is to refer to the amount on Letter 6419 issued by the IRS, and the other is to refer to the IRS online account.
Letter 6419
Taxpayers eligible for the Advance Child Tax Credit should have received Letter 6419 from the IRS in early 2022. Please refer to the "Box 1 Aggregate amount of AdvCTC payments you received for 2021" in this Letter.
Letter 6419 sample
IRS online account
Open your IRS account and click on "View Advance Child Tax Credit Information"
The “Child Tax Credit Update Portal” opens.
You can check if you are eligible for advance child tax credit in the “Eligibility” section.
Click the "Processed Payments" plus symbol to see payment details from July to December.
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