The stimulus check-filled year of 2021 is about to come to a close, with just four days before we turn the page on the calendar and the whole picture along these lines changes completely. For now, there will be no more monthly child tax credit payments in 2022. Although, taxpayers will get to claim a stimulus-related tax break when they file their federal tax return as soon as next month. On that score, the IRS is prepping a big mailout of letters that you’ll need to use in order to do so. And the tax agency is also racing to finish a final mailout of a specific kind of stimulus check. It’s called a plus-up payment, and the last ones are going out before the end of this week.
Plus-up payment deadline
Eligible taxpayers can get up to a $1,400 payment here. Even better, they don’t need to take any steps proactively to get it. The IRS is researching people’s eligibility and sending out the checks automatically.
Basically, the IRS describes these as “supplemental payments for people who … received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.” Importantly, the tax agency has to get these payments out the door by December 31. And here’s where you can check the status of your payment, if you’re expecting one.
Note: If you do get a plus-up payment? The IRS will spell out the details in a communication called Letter 6475 that it’s sending out soon. Hold on to that letter, because you’ll want to make sure the information on it matches what you put on your next federal tax return.
Stimulus news for 2022
There are also at least two pieces of news to remind everyone about that are relevant to 2022. This is in addition to the plus-up payment.
One is the tax credit we already mentioned. Even though come January Democrats plan to resume their fight to secure a 1-year extension of the child tax credit stimulus payments? There’s no guarantee they’ll be able to pull it off. However, the tax credit we mentioned is already baked in.
Really, the child tax credit amount that recipients were approved for was one single amount. It’s just that it was split in half, and then that first half split up again into six monthly checks this year. So that recipients could enjoy some of the benefit of the tax credit early, in 2021, when the pandemic is still raging. Rather than wait until 2022.
According to a recent message from the tax agency, it’s also starting to send out “information letters”. Specifically, to people who got the child tax credit this year. As well as a letter to recipients earlier this year of the third stimulus check (generally for $1,400). As for the child tax recipients? Their letter will note “the amount of the child tax credit they can properly claim on their 2021 tax return.”