The monthly enhanced child tax credits expire at the end of December. It marks the end of the last of the regular stimulus checks. Eligible families will receive the remaining 50% of the CTC payments after filing their tax returns for 2021 early next year.
The IRS has prepared a huge mail out for the balance CTC payments that you will need to receive the balance payment. The agency has also completed the final mail out for the distribution of another stimulus check. The last round of plus-up payments should be sent out by next week.
Deadline For The Plus-Up Stimulus Check
Under the plus-up routine, the IRS has been proactive in sending out stimulus checks to eligible taxpayers. These supplemental payments are for people who have received their initial stimulus payments based on their 2019 tax returns. When they filed their 2020 returns, they made a subsequent revision.
The IRS must complete all outstanding payments by December 31, 2021. And if you have pending payments from the federal government as a result of the stimulus package, you can expect one soon.
In a letter, the authorities will tell you of the expected payment. The payment will be detailed in Letter 6475. The letter will be required later to ensure that the information contained in it matches the figures on your 2021 income tax return.
Two other bits of news are important for the next year. The first is a tax break. The CTC payment was equally split, with the federal government sending half of it in six monthly checks between July and December 2021.
As a result, eligible recipients can expect to receive the remaining half of the payment after filing their 2021 tax returns. The government has sent out what is known as ‘information letters,’ which detail the amount you can claim on your next tax returns.