Photo of Eric Ebbert CFP®, MBA Eric Ebbert CFP®, MBA Jan 10, 2022

If you received Letter 6419 in the mail, then you are likely eligible for further child tax credits from the IRS in 2022. Many families received half of the newly expanded child credit payments in the previous year. But the rest of the payments will be going out during the 2022 tax season, and it’s important to make sure you are doing everything you need to receive your credit payments. That’s where a financial advisor can provide valuable insight.

Here are some important dates to remember for your child tax credit payments:

  • Late December 2021 — The IRS began mailing out Letter 6419 to eligible families near the end of December 2021, but will continue to mail them out through early January 2022. Be sure not to lose this letter if you’ve already received it and keep an eye on the mail if you haven’t received yours yet.
  • January 24, 2022 — This is the first day of tax season in 2022. That means that, if you have collected all your W-2s from your employer, your 1099 forms for other sources of income, and your other required documents, you can file your tax return with the IRS. 
  • April 15, 2022 — This will be the last day you can file your tax returns from 2021. If you are unable to file by this date, you can file for a tax return extension using Form 4868. This allows you to extend the deadline to file your tax return until October 15.

How will my child tax credit payment affect my taxes?

If you received a child tax credit payment advance in 2021, it could affect your tax returns. This can happen if:

  • You received a child tax credit payment for a child who turned 18 last year, if your household experienced an increase in income, or if you received an overpayment. You may have to pay that money back.
  • There is a change in child custody. If parents divorce and the parent with custody changes from one year to the next, only one parent can claim the credit for a given child.

How much can I expect to get from my child tax credit payment in 2022?

If you have already received part of your child tax credit payment in 2021, then you can expect to receive $1,800 per child under 5 years of age, and $1,500 per child between the ages of 6 and 17. 

If you did not receive any child tax credit payments in 2021, you can expect to receive $3,600 per child under 5 years of age, and $3,000 per child between the ages of 6 and 17 after you file for your tax returns between January 24 and April 15 of this year.

Talk to a ProVise CFP® professional about your child tax credit payments for 2022

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about your child tax credits and how they may impact your 2021 tax returns? Contact ProVise today to schedule a complimentary consultation.