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Omaha tax preparer navigates child credit this year’s tax season

Published: Jan. 4, 2022 at 5:11 PM CST
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OMAHA, Neb. (WOWT) - For many parents the advanced child tax credit was helpful. Now the IRS is sending out letters to let taxpayers know IRS letter 6419 is on its way to document those advanced payments.

“I did hear that there was going to be something different in the way we take care of it when we file taxes.”

“Anybody who’s qualified to receive the additional child tax credit for 2021 will have to have that letter with the amount the IRS shows on there to file their tax return,” said John Gross.

John Gross is the President of Midwest Accounting and Tax Services. He tells 6 News that married couples will both receive a copy of the document.

“Most likely if you’re married filing joint the IRS wants to make sure both individuals in the same household receive the same information, they want to make sure that all individuals who appear in the income tax return have all the relevant information.”

The early letter has income guidelines to qualify for the advanced child tax credit. If your income is too high, Gross says you will have to pay back those advance payments.

“That’s why it’s important to have that form 6419 so you know how much you received during the year because if you have the wrong amount and you are expected to pay that back, they will not send you a letter until after the tax season and they will expect that back with penalty and interest.”

Gross says the first-time document might offer more confusion for taxpayers as they make their way through the COVID-adjusted filing system of the last couple of years.

“It can be confusing, in the 2020 tax year the advanced stimulus check, people were quite sure about receiving payments or cards in the mail from the IRS, so they can get overwhelmed with information they received.”

Some parents are hoping one more document to file with their tax return won’t make things too complicated.

“Hopefully it will not be too much trouble figuring out the paperwork and everything.”

For questions about your tax forms, talk to your tax preparer, contact the IRS or call the IRS at 1-800-829-1040.

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