Had A Baby In 2020? You Could Get An Extra $1,100 Stimulus Payment
How's this for more good news to start 2020? Parents that welcomed a baby in 2020 and haven’t received an economic impact payment for their child as a dependent may be eligible for up to $1,100 of extra cash.
Both rounds of stimulus payments Americans have received are an advance on a 2020 tax credit. According to a new report from MSN, children born before Dec. 31, 2020, will qualify for both payments if their parents meet income limits: $500 from the first round and $600 from the second round for dependent children 16 and younger.
So here's the catch: because these automatic payments are based off the 2019 tax returns, the IRS doesn't know about these babies born in 2020.
The child credits are subject to the same phaseouts based on income limits as payments for adults:
- $75,000 if you're a single filer.
- $112,500 if you're head of household.
- $150,000 if you're married and file a joint return.
For every $1 their parents earn above the limits, the payments will be reduced by $0.05.
According to MSN, in order to get your extra $1,100 of stimulus money for your 2020 bundle of joy, you'll need to file a tax return and get it as a refund recovery credit.
Any eligible person who did not receive their stimulus checks can claim the recovery rebate credit on a 2020 Form 1040 or Form 1040-SR.
Of course, you want to remember that this is YOUR stimulus money and NOT your kid's. They are a dependent under you. So remember to keep in mind these things you probably shouldn't do with your money, and the scams that are out there targeting those awaiting stimulus payments.
KEEP READING: Scroll to see what the big headlines were the year you were born