Parents Might Pay More Taxes Because of This IRS Mistake…

What is the Advanced Child Tax Credit?

Under the American Rescue Plan of 2021, advance payments of up to half the 2021 Child Tax Credit were sent to eligible families. More than 30 million American families received monthly payments of up to $300 for children younger than 6 and up to $250 for children ages 6-17. These taxpayers did not need to take any action to receive these payments, as they were automatically sent out on the 15th of each month, beginning in July 2021.

The intention behind this program was to allow families to benefit from their 2021 income tax return’s Child Tax Credit in advance, and thus lessen the negative impact of the COVID-19 pandemic on them. Parents would then be able to claim the other half of their Child Tax Credit when they filed their 2021 income tax return.



The IRS is currently sending out 6419 Letters, which contains details on how much child tax credit money you received in 2021. The problem is that the letters themselves have come with mistakes.

What Went Wrong?

The IRS’s 6419 Letter should contain the sum of all the money parents received from the advanced payment program, as well as the number of children those payments were for. This total is important because it determines the remaining amount of Child Tax Credit payments you can be given when you file for your 2022 taxes.

The problem here is that parents aren’t getting the correct amount!

This is really important because an incorrect logging of your payments can lead to significant changes in your tax refund. Parents who are told that they received money which they didn’t receive may end up with a far lower tax refund. Alternatively, they might end up with no refund at all!

Parents who qualified for the Advanced Child Tax Credit but didn’t receive their monthly payments are also in a bind, as sometimes they are getting notices that they were sent money. In truth, they will have to claim the full Child Tax Credit on their taxes when they file this April.

What’s the IRS’s Response?

In a press conference, Ken Corbin, the IRS’s chief taxpayer experience officer and the agency’s wage and investment division commissioner, noted that the IRS is aware of this issue.

He recommends that parents with incorrect 6419 Letters log into the IRS website to double-check. Alternatively, if the amounts wired to your bank account differ from the amounts in your Letter 6419, you should use the bank’s numbers. 

If there was ever a reason for parents to keep track of their finances, this would be the one. Connect with a tax pro to iron out what can be done about the Advanced Child Tax Credit. Our professionals with 20+ years of experience can work with you to find unique ways to lower your total tax bill.