11 Feb New IRS Form: What Is Letter 6419 and Why Do You Need It?
Most people know what forms to expect from the IRS each year, but this tax season, you’ll probably be getting a brand-new tax form in the mail. It’s called Letter 6419, and it’s important that you hang onto it, along with all your other tax forms, to assist you with filing your tax return. Here’s what you need to know about this IRS letter.
What Is It?
The reason you’ve never seen Letter 6419 before is because it’s tied to an income source you’ve never had before: the expanded child tax credit. The letter details how much money you received in advanced child tax credit payments in 2021, and will list the number of qualifying dependents the IRS has on record for you.
Why Do You Need It?
You need to hold onto Letter 6419 for the same reason you’d hang onto any other income tax form; it’s used to verify your income to ensure that it’s accurate on your tax return. If you’re like many taxpayers, you may not be sure exactly how much you should have received in those advanced tax credit payments. This letter helps you to understand how much you received, as well as why you received that amount (based on the number of dependents the IRS has on record for you).
You’ll need to recalculate the amount you should have received in child tax credit payments with the amount that you were actually paid, based on Letter 6419. If you were underpaid, your tax return is your chance to claim your remaining child tax credit amount.
What If You Didn’t Receive It?
By now, most taxpayers should have received their letters. However, if you have not, try waiting another week or two. As you likely know, postal service has been slower than usual recently. Keep an eye on your mailbox, but if it hasn’t arrived by the time you’re ready to file, you can confirm the amount you received in advanced child tax credit payments via the IRS’s online portal, and use that information to help in filing your return.
What If You Threw It Out?
If you received your letter and threw it away because you didn’t recognize it as an important tax form, don’t panic. As we already mentioned, that information is available through the IRS’s online portal. You will need an account to access the information, and if you haven’t set one up yet, that can take some time, as it requires identity verification. Once your account is set up, you can access your 2021 payment information as use it as you would Letter 6419.
Will You Get an Additional Credit?
All taxpayers who qualify for a child tax credit should still get at least a portion of that credit on their tax returns. This is because, even if you received the full advanced payment amount in 2021, those advanced payments only represented about half of your total child tax credit. You’ll receive the other half when you file. Additionally, if your advanced payments were miscalculated for 2021 and you were underpaid, you could get even more of a credit.
While the odds are low that the IRS would have miscalculated your child tax credit payment, it’s most likely to occur if the number of dependents on record with the IRS was inaccurate. For example, if you had a baby in 2021, you would qualify for a child tax credit payment for that baby, but it’s unlikely you would have received any advanced payments for them.
As with any tax form, we encourage our clients to hold onto Letter 6419 and provide it to us for tax filing purposes. We can help you calculate how much of a child tax credit you should have received, and compare it with Letter 6419 to ensure you receive the full amount you deserve. If you have any questions about this letter or how the advanced child tax credit payments impact your taxes, reach out to our tax preparation firm in Provo for assistance.