Child Tax Credits & Covid Stimulus Funds
If you received payment during 2021 for either the Child Tax Credit or Stimulus Funds (aka: Economic Impact Payment "EIP"), please read on............
Amounts that you were paid for these during 2021 need to be reported on your 2021 tax return. Very important to report the correct amounts: if not, it's likely your return processing will be delayed by IRS. Which will also delay refunds for months.
Best way to verify the data is to check your online account with IRS. The is the link:
If you haven't already set up an account , this is where it's done. It takes 3-4 minutes to get into the site after you log in. Please be patient. And there's a 10 minute registration process which includes uploading a picture of your driver's license. You can either take a picture with your camera and upload. Or, you can be texted an app from IRS which handles it. I found the app to be easier. It's all a bit annoying but don't be put off : it works. Once verified, you're done and it's quick to navigate to your home page. And the info about Child tax credits and EIP funds is right there.
Once you sign up, you no longer need the drivers license verification and you go straight to your homepage. And can always have access to your IRS data when you need it.
IRS is supposed to mail you a letter with the child tax credit and EIP amounts. But we have been told by IRS that the data on the letter may not be accurate. So best to go to the website to verify.
When I prepare your tax return, I'll ask you for those amounts.
Without having accurate amounts, I cannot unfortunately with any certainty let you know the final amount due with your return or potential refund. With that said, I'll file the return for you with whatever amounts you provide, but if there are changes down the road because the data was not accurate, I believe it's going to be a lengthy process for you to call IRS and have it fixed.
Which is the point of this email: let's take a few extra minutes now to get it right, so hours of frustration can be avoided later.
I wish this was not the case, but it's how things are. And I want all of you to have accurate tax returns prepared!
I hope this helps. If you have questions , please let me know.