Parents of 2020 babies may qualify for $1,100 in extra stimulus money
Parents of babies born between Jan. 1 and Dec. 31, 2020, may be eligible for $1,100 in extra stimulus money, according to an MSN report.
Here’s how it works:
The two rounds of stimulus checks are considered advancements of the 2020 tax credit, with most people receiving payments before filing taxes for the year, as MSN reports. Instead of waiting until citizens filed their 2021 taxes to hand out the tax credit, the IRS is pushing out those tax credits immediately due to the urgency of the pandemic.
According to MSN, the IRS is looking at tax returns from 2019 to determine eligibility (and 2018 returns for the first round of payments).
So parents who gave birth to a child in 2020 may be eligible now for the tax credit for both stimulus checks, if they meet the income limitations. This means these parents could get $500 additional from the first stimulus and $600 additional from the second stimulus, adding up to $1,100 total in additional stimulus payments.
Tax returns for 2019 are being used to determine the stimulus checks. Hence, the IRS won’t know about your 2020 baby or adopted child (the same applies to children who were adopted in 2020).
Parents will need to file their 2020 tax return and get the $1,100 in additional stimulus money as a refund recovery credit, according to MSN.
The government started sending out $600 stimulus checks on Dec. 29, 2020. U.S. citizens can use the IRS’ tool “Get My Payment” to see when their second stimulus will arrive.
A number of taxpayers who use tax preparation services, such as H&R Block and TurboTax, say their second relief payments were sent to the incorrect bank account, forcing them to wait longer for their money. Read more about that here:
