Letters from the IRS

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You may have started to receive letters from the IRS, don’t freak out or don’t automatically throw them away.

Here is what they are and why you need them:

LETTER: 6419- Advanced Child Care Tax Credit

If you qualified, these were payments the IRS sent you throughout the year according to the number of children in your household. This is usually a tax credit you would receive on your income tax return. However, the government, in an effort to ease some financial burdens, sent out advanced payments of this credit.

What this means for you at tax time:

Since you have already received a portion or all of your credit throughout last year, that credit will not be eligible for you when you file your income tax.

What should you do first:

Verify the amount on the letter and the amount you received are correct. Check your bank or wherever the money was received.

IF NOT RECEIVED OR WRONG

Don’t freak out, the IRS has created a portal on their website. ID.me If you haven’t already you need to create an account, you will need to. You can check on the CTC update portal

LETTER: 6475- Economic Impact Payment

Since last year there were many mistakes or incorrectly claimed on the EIP filed. The IRS has sought to rectify with this letter. If you received stimulus check back in March/April for $1400 per person in your household including children, this letter is proof of that.

What should you do first:

Verify the amount on the letter and the amount you received are correct.

IF NOT RECEIVED OR WRONG

For more information on your Economic Impact payment check out this IRS website irs.gov/eip or call their hotline at 800-919-9835

1095-A Health insurance Marketplace Statement

For people who received insurance through the marketplace (ACA or OBAMACARE) this statement reflects what your plan premium cost, if you received any credits toward that premium. Finally what the total credit of the year you were given.

Back in March/April, in another attempt to ease financial burdens some people received a larger credit and paid less for their insurance premium for the rest of the year.

Please keep in mind your Marketplace plan is estimated on your income. If your income drastically changed in 2021 either increased or decreased you could be looking at major changes on your income tax.

What should you do first:

Verify the amount on the statement against the amount you paid. Make sure it is correct.

IF NOT RECEIVED:

Go the the marketplace website to download your 1095-A

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