If You Had a Baby in 2020, You May Be Eligible for Stimulus Money
If you welcomed a baby into the family in 2020, you may be eligible for up to $1,100 in stimulus money.
According to a report from MSN from The Motley Fool, babies who were born or adopted between January 1, 2020 and December 31, 2020 may be eligible depending on their parents’ income and whether they received any stimulus payments for the baby earlier in 2020.
The sum is a total of the two rounds of stimulus payments that have gone out, including the one in the spring that gave families $500 per eligible child and the second, recent one, which offers families $600 per eligible child. In the report, The Motley Fool explains that both rounds of stimulus checks have been an advance on 2020 tax credit. Due to the urgency of the matter, instead of waiting for everyone to file tax returns this spring, the IRS used tax returns from 2019 or, in some cases for the first round, 2018. Since baby would have been born or adopted this year, it’s likely the IRS doesn’t know about them, which could qualify them for the stimulus money if their parents meet the income requirement.
So how can parents cash in on the $1,100? All you have to do is file a tax return and receive it as a refund recovery credit, the report explains. In terms of eligibility, the money is only applicable for kids who are under certain income limits, which is $75,000 for single filers, $112,500 for people filing as head of household and $150,000 for married couples filing joint tax returns. For those who earn above these limits, the stimulus payment will be reduced by $0.05 for every $1 earned about the limit.
To learn more about eligibility and how to receive the payment, check out the full report.