Child tax credit, stimulus checks mean tax-filing confusion

Tax preparers are bracing for a long and confusing tax season because of stimulus checks and the Child Tax Credit that Americans received in 2021.

Many families did not get all the stimulus money and credits they were entitled to, which means they will be able to claim them.

Lesa Strull is a mom of two children, who says she didn’t receive all her Child Tax Credit checks last year.

“I got the first one, I believe I received four, starting in July,” she said. “But come November, there was nothing.”

She said she got no answer from the IRS.

What to do if you didn’t receive what you were owed

Tax accountants say they are already getting a lot of questions about the Child Tax Credit because, for a lot of families, it was like getting part of their tax refund six months early.

Certified Public Accountant Roy Mitchell says for those who didn’t get all they were owed, up to $3,600 per child, now is the time to claim it.

People can also claim a missing stimulus check.

“The short answer there is there will be some place on there to make that claim, yes,” Mitchell said.

But his office is bracing for a lot of confusion, and not just from people missing some money.

Confusion over smaller tax refunds

He also expects to hear from taxpayers wondering why their refund is $1,000 less than last year’s.

That is because the Child Tax Credit was an advance on the money they usually get at filing time.

“That can create some confusion when people think they are going to get a full $3,600 credit on the return, and they have forgotten they have already gotten half that amount in advance,” Mitchell said.

Last year’s stimulus checks, on the other hand, will not impact refunds.

Look for IRS letter in the mail

For parents who have children under 18, Mitchell suggests they wait to file until they receive a letter from the IRS, explaining exactly how much they received, and if they are owed more.

For those who are still confused, they may want to talk to a tax pro, like Lesa Strull is doing.

“When I file my taxes, I’ll talk to someone about how to put this on my taxes, so I can get that money, she said.

A professional will make sure you get any missing credit from 2021, so you don’t waste your money.
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