IRS MAKES AN IMPORTANT ANNOUNCEMENT

The 2021 tax filing deadline is still months away, but the Internal Revenue Service (IRS) has already urged taxpayers to start preparing — especially those who need to take action on certain payments from the federal government.

Such payments include both the popular stimulus check payments and upfront child tax payments, according to the agency. Here's what you need to know about both programs.

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Stimulus Checks

The third and final round of federal stimulus checks began in March, but some eligible people received nothing or less than the full $1,400.

According to an IRS press release, they may be eligible for a recovery rebate credit if their 2021 tax information qualifies for those who were eligible for the federal government's COVID-19 program.

Anyone who believes they are eligible for a loan must first file their 2021 tax return year, regardless of whether he usually submits it. Everyone will be required to show the full amount of their third stimulus payment, including any additional payments.

(Note: IRS information only affects federal payments, not those sent by states like California.)

Child payments

Child Tax Credit advance payments began flowing to tens of millions of households in mid-July and are due through December 15, 2021. Families received up to $300 per declarations for 2021. Some have completely waived advance payments and will be able to claim a lump sum payment of the amount due to them.

According to the IRS website, "Families who receive advance payments will need to compare the Child Tax Credit payments they received in 2021 with the amount of Child Tax Credit they can properly claim on their 2021 tax return."

The IRS has created a dedicated page for taxpayers that outlines steps to make it easier to file next year.

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