Reconciliation of Advance Payments With Child Tax Credit

The IRS warns that if the amount of advance child tax payments you report on IRS Schedule 8812 don’t match the figures reported more tips here on Letter 6419, then the processing of your return will be delayed. That means any refund you are entitled to will also be delayed.

If you don’t receive Letter 6419, you can check your IRS online account on the tax agency’s website. Once you have gone through all the steps to create an account (if you haven’t already done so) and log on, you will be able to verify the amount of child tax credit payments you received for 2021. Alternatively, you can call the IRS at 800-908-4184 to get the information needed before completing Schedule 8812.

Incorrect IRS Letter 6419

Question: I received Letter 6419, but it has a different amount than what I remember actually receiving. What should I do?

Answer: If you filed a joint return, then you and your spouse should have each received Letter 6419 reporting half the payments. If this is the case for you, add the payments together and see if the total matches what your records say you received. If it doesn’t match, or if you’re not married, check the figures with what’s reported on your IRS online account (you’ll have to set one up if you don’t already have an account). Be sure to use the online account figure if it’s different than what’s shown in Letter 6419. If you still have questions and believe the IRS reported the advance payments in error, you can call the IRS at 800-908-4184.

Taxation of Advance Payments

Answer: No. Any payments that you received are advance payments of the 2021 child tax credit, so they are not taxable. On your 2021 Form 1040, you will use IRS Schedule 8812 to reconcile the monthly payments that you received from the IRS in 2021 with the child tax credit that you are actually entitled to.

Didn’t Receive Child Tax Credit Payments

Question: I didn’t receive any advance child tax credit payments last year. Can I claim the credit on my 2021 tax return?

Answer: Yes. Eligible families who didn’t receive any advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal tax return. You must use Schedule 8812 to figure your total child credit and then transfer the amount on line 14i of the 8812 to line 28 of the Form 1040. Remember to attach Schedule 8812 to your return.

Question: How do I reconcile the advance payments I got with the actual child tax credit I am entitled to when I file my 2021 return?

Answer: When you fill out your 2021 Form 1040, you will compare the total amount of advance child tax credit payments that you received in 2021 with the amount of the actual child tax credit that you can claim on your 2021 return. Letter 6419 that you received from the IRS can help you with this calculation. (Remember that if you’re married and file a joint return, you and your spouse should have each received Letter 6419. Add the amounts shown in both Letters to come up with the total amount of advance child tax credit payments that you got in 2021.) You would use Schedule 8812 to figure your total child credit and to reconcile that credit with the amount of payments you received.

For most people, the amount of the credit should exceed the payments you receive. If this is the case, you can claim the excess credit on your 2021 Form 1040. After filling out Schedule 8812, you would transfer the amount on line 14i of the 8812 to line 28 of the Form 1040.