Many Americans have been receiving advance payments for the child tax credit. As part of the US bailout package enacted in March 2021, the amount of the credit was increased and eligibility was expanded so that families with little or no income could qualify. In addition, the legislation allowed for the early disbursement of half of the credit in monthly installments from July to December last year. The other half is distributed as part of the tax refund.
To obtain the remaining amount, taxpayers must now use a new tax document during this filing season, IRS Letter 6419, to indicate the amount they received in advance of the child tax credit.
Taxpayers whose refund is based solely on this credit may receive a smaller tax refund this year. If you have not received IRS Letter 6419, you can obtain it from the IRS Child Tax Credit Update Portal. You will need this document to file your return this year.
