With tax season now officially underway, here are several tax documents that can be easy to miss in your mailbox or inbox:
Child tax credit letter. From July to December 2021, the IRS paid 50% of scheduled child tax credit payments to eligible households. The IRS sends a summary of these prepayments in letter 6419 that you can use to properly account for these payments on your tax return. This letter should have arrived in your mailbox at the end of January.
The IRS warns taxpayers, however, that letter 6419 may have incorrect dollar amounts if you moved or changed bank accounts in December. The IRS is urging taxpayers to use the information in their online taxpayer accounts to get the most up-to-date figures on how much child advance tax credit to include on their tax returns, instead of the figures included in letter 6419. Click here to learn more about your online account with the IRS.
Dunning payment letter. The IRS issued millions of Economic Impact Payments in 2021. The IRS sends a summary of those payments you received in letter 6475. As with the Child Tax Credit Letter, you can use this letter to accurately report your economic impact payments on your tax return. . This letter should also have arrived in your mailbox at the end of January.
Identification PIN. The IRS may have assigned you an Identity Protection PIN (IP PIN) to help protect your identity. An IP PIN is a six-digit number that prevents someone else from filing a tax return using your social security number or individual tax identification number. This IP PIN is known only to you and the IRS. If you are a confirmed victim of tax-related identity theft and the IRS has resolved your tax account issues, the IRS will send you a CP01A notice with your new IP PIN each year.
Corrected tax forms. If an error is discovered on a tax form you have already received, a corrected version will be created and then mailed to you and the IRS. You can also request a corrected tax form if you believe you have found an error. Here are some of the forms you might see with corrections:
- Form W-2 from your employer showing corrected wages, wages, and taxes withheld
- Form 1099-INT or Form 1099-DIV from your investment dealer indicating a review of interest and dividend income
- Form 1099-NEC from a client to whom you provide services
- Form 1098 showing the amount of mortgage or student loan interest you paid
You may not know you received a corrected tax form until it appears in your mailbox (or inbox). If you receive a corrected form, do not discard the old version! Save both the original version and the corrected version in case either is needed for future reference.
Often the ease of filing your tax return depends on having the correct information available, so remember to research everything, including those often overlooked forms.
— By Nancy J. Ekrem, CPA
DME CPA Group PC
Chartered Accountants and Business Consultants