Why should you wait to file your taxes this year if you received the child tax credit?
Many families had the option of getting child tax credit checks last year. The child tax credit is normally calculated when you do your taxes but to help families during the COVID pandemic, Congress increased the credit and gave families the option of getting half the credit in advance. This was done in monthly payments delivered between July and December.
Now the IRS is sending special statements to the millions of Americans who got those checks. To get the other half you'll need that letter.
You will need to enter the information on your federal tax return to reconcile the amounts.
Married couples should expect to receive two separate letters. If you don’t get one, you can go to the IRS child tax credit website and check your information online.
The IRS is also sending a letter about the third round of stimulus checks sent out starting in March of last year.
Most people should have already received their payments. But if you didn’t or you got less than you were supposed to, that letter from the IRS will help you claim that money on your 2021 tax return.