Here’s why new parents may qualify for another $1,400 stimulus check

0

Marko Geber | DigitalVision | Getty Images

The IRS has issued all third-round stimulus payments to eligible Americans, the agency said Wednesday. However, new parents and other recipients who added dependents in 2021 may still qualify for additional money.

The payments, up to $1,400 a person, were authorized by the American Rescue Plan Act, a pandemic-relief bill Democrats passed in March.

The IRS also issued two other Economic Impact Payments (of up to $1,200 and $600) that were authorized by earlier, bipartisan relief packages.

Eligibility and total funds received by households were based on income and other requirements.

Some $1,400 payments may still be in the mail, but the IRS is no longer issuing funds from the first, second or third rounds, the agency said. The IRS issued more than 175 million third-round payments to households worth over $400 billion through Dec. 31.

Who qualifies for more?

Some households will qualify for additional third-round funds when they file their 2021 income tax return this year, however. This is true for those whose circumstances changed in 2021 relative to 2020.

For example, children born in 2021 qualify for an additional payment of up to $1,400, which parents didn’t receive last year.

Families who added a dependent (like a parent, nephew, niece or grandchild) on their 2021 tax return and who was not listed as a dependent on their 2020 return may also qualify, the IRS said.

Most other eligible people already received the full third-round amount and won’t qualify for more, the agency said.

More from Personal Finance:
Diversity among financial planners improved in 2021 — but still lags
What you can do to prepare for the coming interest-rate hike
SALT relief may still be possible

Families can recover additional stimulus payments on their tax return by claiming the 2021 Recovery Rebate Credit. (Stimulus checks are technically an advanced payment of the Recovery Rebate Credit.)

The tax season started Monday and runs through April 18 for most people.

To claim the 2021 Recovery Rebate Credit, individuals must know how much money they received in total third-round stimulus payments.

That information is available through their online IRS account or via Letter 6475, which the agency is mailing through March to those who were issued third-round payments. (Married individuals filing a joint tax return will need to determine their individual information and add it together.)

The IRS is urging taxpayers to file an accurate, electronic return to speed up processing and get a faster refund. Errors or incomplete returns require further review, which might cause delays, the agency warned.

Read original article here

Denial of responsibility! Verve Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
Hello,