January 3, 2022
Dear Clients, Colleagues and Friends,
The Internal Revenue Service will be sending information letters to recipients of Advance Child Tax Credit Payments and third Economic Impact Payments that were paid during 2021. Taxpayers who received these payments will need the information provided on these letters to prepare their 2021 individual income tax return. Please provide these letters to us along with your standard 2021 tax documents to ensure a complete and accurate filing.
Eligibility for the Advance Child Tax Credit Payments and the third Economic Impact Payments was based on a taxpayer’s 2019 or 2020 income. A reconciliation will be required as part of a taxpayer’s return to determine which payments, if any, should have been received by the taxpayer based on their 2021 income. There will be instances where taxpayers are entitled to additional payments, as well as instances where taxpayers will need to pay back excess payments received.
If you have any questions or need further information, please contact your Presti & Naegele professional directly, or dial 212-736-0055 for immediate assistance.
Presti & Naegele