With tax season beginning in less than a week there are many questions surrounding the Child Tax Credit and it’s leading to some confusion among parents.
But today a Blair County official is trying to help clear it all up.
Nicole Fuschino tells us what you need to know.
It’s that time of the year again tax season which the pandemic has made even more confusing.
For those with kids you may have received the child tax credit payments from July to December of last year.
They can make filing your tax return a little more complex than normal.
“It will be disappointing to a lot of people who didn’t fully understand, who took the money, and their refund is going to be significantly less than it might have been otherwise. Or they could potentially owe at the end of the year.”
Here’s why. Those Child Tax Credit payments you received last year was not free money it was this year’s money given to you in advance.
“If you’re eligible for the child tax credit, they sent you an advance on that credit. So, they sent you part of your ‘refund’ early, throughout 2021. Now, we’re going to reconcile on your tax return the amount that you were paid.”
This was something parents had to opt out of not opt in to.
“A lot of my clients were upset. They wished that you could’ve opted in, but instead you had to opt out. They did it to everybody.”
So here’s what this means for you.
Families or people who received the Child Tax Credit should be getting letter 6419 in the mail from the IRS soon which tells you how much of the credit they’ve already given you.
The other half of those payments will be given to you once you file.
“It basically will tell you it’ll have your name and social security number on it and it’ll say here’s what you got. Here’s what we paid you. When we do your return, and figure out what you’re due, we’ll take that amount off.”
That piece of paper will be vital for your tax preparations.
“We’ll need that, or whoever does your return will need that, to reconcile your child tax credit.”
“It’s really important that we have that letter and be able to reconcile your return.”
He says they will be seeing clients in person this year but will also be accepting drop offs.
Tax season ends April 18th but once you have all the paperwork you need he says send everything in sooner rather than later.
“We’re going to get real busy here real fast. We do encourage people to let us take a look at it a little earlier rather than waiting until the very last minute.”
The Child Tax Credit was increased to $3600 for children under the age of 6 and $3000 for children ages 6 to 17.
If you don’t have children but you got a stimulus payment you should be getting letter 6475 in the mail from the irs to reconcile those payments too.