Important Tax Documents

One of the many changes for this tax year is the receipt of important tax documents from the IRS to be utilized for filing your tax return. The third Economic Stimulus Payment and the Advance Child Tax Credit payments received under the American Recovery Act will be required to reported on the 2021 tax return.

Neither of these amounts are considered INCOME and will not be TAXED. I repeat they are NOT INCOME AND WILL NOT BE TAXED! However, the amounts will be required for the calculation of the Recovery Rebate Credit and the Child Tax Credit on your 2021 tax return.

The IRS has already begun sending out the following letters.

· Letter 6475 This is the letter detailing the amount of your third Economic Stimulus payment.

· Letter 6419 This letter provides the total amount of Advanced Child Tax Credit payments you received in 2021. You will only receive Letter 6419 if you qualified for and received these payments. You will not receive this letter if you did not qualify for the payments or opted out of receiving the payments.

It is very important you retain these letters for the preparation of your tax returns.

We at AM INCOME TAX have created a Tax Checklist to assist with the gathering of your tax documents for tax preparation. This is a checklist of the documents generally need for the filing on any return along with some that our needed for the filing of a more specific types of return.

As always, we are here to assist with any questions regarding these letters or tax documents you may need for preparation. Please feel free to contact us.

READY SET, TAX SEASON IS ALMOST HERE… LET’S GO!