Skip page Logo and Brand information to navigation. Skip page header section and navigation, to main content.

What You Will Need and Know for 2021 Tax Filing

  • Notice 1444-C, Your 2021 Economic Impact Payment. Later this year, the IRS will mail this letter to people who received a third Economic Impact Payment. This letter should be kept with tax year 2021 records. 
  • In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season. This letter will be mailed to your address on file as of the letter’s mailing date. This generally will be the address on your most recent tax return, or as updated through the Child Tax Credit Update Portal (CTC UP) or the United States Postal Service (USPS). For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.
  • The 1099-K change will take effect January 1, 2022. PayPal and Venmo will be required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year. This means you will need to take into account the Threshold Change with your Tax Year 2022 filing
  • American Rescue Plan Act of 2021 (ARP Act) -
    • For 2021 only, the minimum age to claim the EIC for taxpayers without children (childless EIC) generally has been lowered from age 25 to age 19. However, full time students must be age 24. The maximum age limit of 65 for claiming the childless EIC has been eliminated as well. Also, the credit and phaseout percentage increases from 7.65% to 15.3% for an individual with no qualifying children. The earned income at which the taxpayer receives the maximum credit amount increases to $9,820 and the phaseout begins with earned income of $11,610. The maximum EIC amount in 2021 increases to $1,502.Taxpayers may temporarily use their 2019 earned income to determine the EIC on their 2021 tax return if their 2019 earned income was more than their 2021 earned income
    • For 2021 only, the child and dependent care credit is fully refundable and the dollar limit for eligible expenses increases from $3,000 to $8,000 for one eligible child and from $6,000 to $16,000 for two or more eligible children. The maximum credit rate also increases from 35% to 50%, and the AGI level at which this percentage is reduced increases substantially from $15,000 to $125,000.