Did you have a baby in 2020? You could be eligible for $1,100 in stimulus money

Recovery rebate credit could mean more money for new parents

Still haven’t received your 2nd COVID-19 stimulus? Read this

SAN ANTONIO – The Internal Revenue Service has been busy sending people money in the last year as part of economic stimulus payments to help Americans who are suffering financially due to the coronavirus pandemic.

The first round of stimulus payments was sent in April in the amount of $1,200 per person with an additional $500 for dependents under the age of 17 - given that you met the income requirements.

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The second round of stimulus payments started being deposited into Americans bank accounts at the tail end of 2020 and, again granted that you met the income requirements, included $600 per adult with an additional $600 per qualifying dependent under age 17.

However, due to the IRS using, in most cases, tax returns from 2019 as the basis for the amount of stimulus money you received, parents who welcomed a new child in 2020 probably didn’t receive that extra $1,100 from the combined stimulus payments.

So, if you have not or did not yet receive the money for a dependent that was born in 2020, and your income made you eligible to receive that money, you are entitled to a recovery rebate credit.

According to the IRS, “eligible individuals can claim the recovery rebate credit on their 2020 Form 1040 or 1040-SR. These forms can also be used by people who are not normally required to file tax returns but are eligible for the credit.”

The CARES Act specifically authorizes the recovery rebate credit which is only available to those who didn’t receive the full amount of the stimulus payments for their extra dependent or dependents.

If you’re still waiting on a stimulus payment, the IRS has a tool that allows Americans to check the status of their second stimulus payment which can be found here.

If you never received the first economic impact payment, there are answers to frequently asked questions on the IRS website here.

According to the current guidelines, you can expect the full amount of the stimulus relief check if your adjusted gross income for 2019 is up to $75,000 for an individual or $150,000 for married couples.

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