Are you expecting a baby in 2021? You could end up with another $ 1,400 stimulus check
Last week, Congress passed a $ 1.9 trillion relief bill that included a check for $ 1,400 for most Americans, with an additional check for adults and dependent children. But once those checks are paid, new parents may be entitled to another check if their household grows this year.
This is because eligible parents are entitled to another check for $ 1,400 if they have a child at any time in 2021. That check will not come until after taxpayers file their 2021 return. taxes next year, provided they meet the other eligibility criteria. A Democratic aide confirmed these details to Fortune Monday.
Currently, the IRS is in the process of send checks to eligible Americans. People earning up to $ 75,000 per year are eligible for a $ 1,400 stimulus check, while couples declaring together earning up to $ 150,000 can get a check for $ 2,800. Taxpayers can also expect a check for $ 1,400 for each dependent if they match these income levels. So for a family of four earning up to $ 150,000 per year, that stimulus payment would be $ 5,600. Americans can check the status of their direct payments on the “Get My Payment” portal on the IRS.gov website.
However, compared to the previous two rounds of audits, the payments of $ 1,400 disappear more quickly. People earning over $ 80,000 and couples declaring together over $ 160,000 are not eligible for a check.
Just as with the two relief bills in 2020 that sent checks for $ 1,200 and $ 600 to Americans, this latest package uses the taxpayer’s most recent tax return with the IRS to determine the eligibility of the taxpayer. income, either 2019 or 2020. Because tax filers may have had a change in income or family size in 2020 that was not reflected on their 2019 or 2018 tax returns, they may be eligible for the Recovery rebate credit when declare their taxes 2020, which could earn them more stimulus money. This most recent package works the same: If a taxpayer had a child in 2021 that would not be reflected on their 2020 tax return, they might be eligible for these additional funds once they file their taxes. 2021 next year.
“The recovery refund credit for an eligible dependent is $ 1,400 for this round, so they would receive that amount with their 2021 tax return,” said Andy Phillips, director of the Tax Institute at H&R Block. Fortune by email.
This story was originally featured on Fortune.com