Thank God 2021 has start out the year on a good note! Did you know that parents who 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? Talk about a consolation prize. :)Both stimulus payment rounds are an advance on 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.

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.

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