As far as new stimulus payments go, it’s a waiting game now for millions of Americans. They’re waiting to see what will happen in January, as the Biden administration has yet to find a legislative pathway that will secure full congressional approval for its new stimulus check plan. That would be the president’s nearly $2 trillion Build Back Better legislation, which funds 12 more months of child tax credit payments (among other things). While everyone waits, though, the IRS has also just come out with an important stimulus check update.
It involves some important details that people need to know about 2022 if they got any child tax credit payments this year. And we’ve got all the details below.
IRS stimulus check update
Regardless of whether or not any new action gets taken on stimulus checks in 2022, there’s one benefit that’s already baked in for next year. And if you got any child tax credit payments this year? You’re already guaranteed to receive this one.
It’s a tax credit that you can take when you file your federal return in 2022. The amount of the credit you claim will equal the total amount of money the child tax credit checks gave you this year.
And that leads to what’s in this new IRS stimulus check update. According to a new communication from the tax agency, it’s 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).
Keep an eye on your mail
That second letter is going out in early January. As for the child tax credit recipients, their letter “will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments … Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.
“The letter contains important information that can make preparing their tax returns easier. People who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov.”
What about eligible families who didn’t receive any advance child tax credit payments this year? They can claim the full child tax credit amount on their 2021 federal tax return when they file in 2022.
The entire IRS announcement is worth a read, and it’s available right here. Meanwhile, you can also catch up on some of our recent stimulus check coverage via the post links below: