Child tax credit information

 I have an important notice for families if you received the enhanced child tax credit last year. The monthly payments that were sent to millions of families with eligible children from July to December only accounted for half of the credit. Now, those who got the money need to show what they received to make sure they get the second half in their 2021 tax refund. The IRS has begun sending letters to families that show the total amount of advance payments they received. The agency will continue to send out the form, called Letter 6419, to families through the end of January. Families should hold onto the letter and use it to correctly reconcile the child tax credit when they file their 2021 taxes. “If you don’t make that reconciliation, they’re going to hold your refund until you do that,”. It’s important that all families with eligible children file their taxes this year. Because the enhanced child tax credit was made fully refundable for 2021, families with eligible children may get a refund even if they do not owe any taxes for the year. It could amount to thousands of dollars. The enhanced child tax credit is $3,000 for children 6 to 17 and $3,600 for those under the age of 6 in 2021 for those receiving the full credit. Whether you do your own taxes or have a tax preparer help you be aware of this since it is a change from 2020 taxes.