If you're the proud new parent of a 2020 baby, here's some great news to get you through those sleepless nights: Your 2020 bundle of joy qualifies you for a sweet bundle of Stimulus Cash – US $ 1,100 to be precise Dollar.
Why are new parents getting an additional $ 1,100?
The first stimulus check gave parents an additional $ 500 for each child aged 16 years and younger on top of the $ 1,200 for most adults. The second stimulus check provided families with $ 600 for each adult and dependent child 16 and under. Between the two checks, parents typically received $ 1,100 per child.
Both checks were an advance on a 2020 tax credit that was processed with the 2018 or 2019 tax returns. However, the IRS does not know about the babies born into the world in 2020 until you file a tax return.
When you file your 2020 taxes, you can get the $ 1,100 in credit towards rebate reclaim. That just means that you will get the extra money as a tax refund. This is in addition to the $ 2,000 child tax credit that qualifies as parents who are single applicants on income below $ 200,000 or joint applicants on income below $ 400,000.
What are the income limits?
For both stimulus tests, the income limits for receiving full stimulus payments were:
- $ 75,000 for individual filers
- $ 112,500 for heads of household
- $ 150,000 for married couples filing a joint return
Checks were set at 5 cents on the dollar for every dollar of income above these thresholds. For a more detailed explanation of how the exit for child loans works, see question 7 of our FAQ on child loans.
Will I get $ 1,100 if I adopt in 2020?
You should qualify for a $ 1,100 new addition to your family stimulus payment as long as the child you adopted was 16 years or younger in late 2020. The same rules apply: file your tax return to get the money back.
What if I am not married to my child's other parent?
The parent who claims the child as a dependent for tax purposes receives the money.
I didn't get the money for my baby in 2019. What gives?
Many parents were frustrated to find that their stimulus tests did not include the child loans – especially in the first round when many payments were being processed with returns for 2018. If the IRS had used your 2018 tax information, you would not have received payment for a child born in 2019.
However, the solution is the same: file a tax return. By filing taxes online and providing your direct deposit information, you can expect to receive $ 1,100 stimulus money within three weeks.
Robin Hartill is a certified financial planner and senior writer at The Penny Hoarder. She writes the Dear Penny personal finance advisory column. Send your tricky money questions to [email protected]
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