If your family received an enhanced child tax credit last year, then filing your taxes for 2021 will look a little different, according to the Internal Revenue Service.
In order to make sure families receive the correct form of payment, a few things will need to be done, including correctly stating how much you received from the child tax credit.
Those who received monthly payments with eligible children from July to December only received half of the credit and are eligible to receive the second half in their 2021 tax refund.
Families who got that money will need to show what they received to make sure they get the correct amount in their 2021 tax refund, CNBC reported.
The IRS has started sending letters to families which show just how much they received in the advance payments, and the agency will also send out the form, called Letter 6419, to families through the end of January.
Families that receive the letter detailing how much they received should hold onto it and use it to correctly reconcile the child tax credit when filing their 2021 taxes.
When families fill out Schedule 8812 and Form 1040, the information will be helpful as the forms determine how much more money they get from the credit.
Those who don't get the letter can check how much they've received through the advanced child tax credit payments by using the IRS CTC update portal.
Families could receive thousands of dollars in their refunds, making it essential that they correctly file their 2021 taxes.
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.
For children 6 to 17, the credit is $3,000, and for those under 6 in 2021, the total is $3,600 for those receiving full credit.
Tax returns are also an opportunity for those who have not received advance payments to get full credit for each child eligible. In addition, people who did not get their third Economic Impact Payment can also claim the stimulus check on their tax returns.