IRS: Parents of children born in 2021 can claim stimulus as tax credit
ERIE, Pa. (WJET/WFXP) – Parents of children born in 2021 can claim a “recovery rebate credit” of up to $1,400 per child if they haven’t yet received the maximum amount of stimulus check money they are eligible for.
While there won’t be any more third-round stimulus checks distributed, parents of a child or children born in 2021 – or parents and guardians who added a new child to their family in 2021 – can still receive money by claiming it on their tax return.
In late January, the Internal Revenue Service (IRS) began issuing Letter 6475 to recipients of the third-round stimulus checks. The letter will help stimulus check recipients determine if they are entitled to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022.
The American Rescue Plan Act of 2021, which was signed into law on March 11, 2021, authorized the third round of payments to Americans. The IRS began issuing those payments on March 12, 2021.
New parents aren’t the only ones who may be eligible for the recovery rebate credit. According to the IRS, the following people may be owed stimulus check money in the form of a tax credit:
- Parents of a child born in 2021 who claim the child as a dependent on their 2021 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this child.
- All eligible parents of qualifying children born in 2021 are also encouraged to claim the child tax credit— worth up to $3,600 per child born in 2021 — on their 2021 income tax return.
- Families who added a dependent – such as a parent, a nephew or niece, or a grandchild – on their 2021 income tax return who was not listed as a dependent on their 2020 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this dependent.
- Single filers who had incomes above $80,000 in 2020 but less than this amount in 2021; married couples who filed a joint return and had incomes above $160,000 in 2020 but less than this amount in 2021; and head of household filers who had incomes above $120,000 in 2020 but less than this amount in 2021 may be eligible for a 2021 Recovery Rebate Credit of up to $1,400 per person.
- Single filers who had incomes between $75,000 and $80,000 in 2020 but had lower incomes in 2021; married couples who filed a joint return and had incomes between $150,000 and $160,000 in 2020 but had lower incomes in 2021; and head of household filers who had incomes between $112,500 and $120,000 in 2020 but had lower incomes in 2021 may be eligible for a 2021 Recovery Rebate Credit.
According to the IRS, “Get My Payment” will no longer be available as of Jan. 29, 2022, and individuals are encouraged to access their Online Account to view their first, second, and third Economic Impact Payment amounts under the related tax year tab.
The IRS is encouraging taxpayers to file electronically and choose direct deposit for the fastest way to receive their 2021 tax refund.