If you had a new baby or added qualifying children to your family in 2021, you will have to pay an additional $ 1,400 for each additional child. Likewise, if your income dropped significantly last year, you may be owed more money in your taxes. To claim any of this extra stimulus money, you must have a specific letter from the IRS.
Letter 6475, Your third financial impact payment was sent to recipients of the third stimulus check starts at the end of January and is considered the official record for your stimulus payments in 2021. It includes the total amount of your third stimulus check and possibly you may have received.
The stimulus payments are not considered taxable income and do not need to be included in your tax if you do not believe you are entitled to more money. However, if you are not sure, please fill out the recovery discount worksheet using Letter 6475 to find out.
Read on to learn how to secure yourself. Also learn how parents can claim and .
What is IRS Letter 6475?
“The Economic Impact Payment Letters contain important information that can help people quickly and accurately submit their tax returns,” It informs the IRS in a statement in Januaryincluding personal information – such as your name and address – and the total amount sent in your third stimulus payment.
This could include “plus-up” payments, the extra funds the IRS sent to people who were eligible for a larger amount based on their 2019 or 2020 tax returns, or information received from the Social Security Administration, the Department of Veterans Affairs or the Railroad Pensions Board.
You may have already received a letter 1444-C, which showed the amount you were paid and how it was delivered, but that’s not what you want to use to prepare for your 2021 return.
Do I really need the letter?
You should always save tax return related documents, says Mark Stebertax informant at Jackson Hewitt. W-2s, interest statements and IRS letters are a good record for your account “in case something should happen within the next two or three years,” he says.
“It’s always important, but especially important if you need more money – especially if you’ve had a new baby, adopted a child, cared for a child, it’s your year of shared custody or any number of further life changes, Steber told CNET. “All of these situations would be suitable for an additional payment.”
What do I do with letter 6475?
If you use a professional tax intermediary, provide letter 6475 to them with all your other applicable tax documents. If you are preparing your own tax return, use the amount shown in letter 6475 in the worksheet for recovery rebate to determine if a credit applies. The Recovery Discount worksheet is included in IRS Form 1040 instructions and is usually calculated automatically by.
“If you have the wrong amount on your return, it could trigger a manual review,” according to H&R Block’s websitewhich can delay a refund for weeks.
What if I never got letter 6475 or I lost it?
If you have never received a third stimulus check, the IRS did not send you letter 6475. If you were eligible and did not receive a payment by 2021, you can get those funds now by claiming the 2021 tax return.
If you received a third stimulus check but never received letter 6475 or you lost it, you can find the information about the size of your financial consequences using your. Once logged in, click the Show tax records link and then the plus sign next to 2021 under Financial Impact on Payment Information.