Back in March, President Joe Biden signed into law a massive economic aid bill including a $1,400 stimulus check for more than 100 million households. All signs indicate that third stimulus check will be the final one sent out during this crisis.
But this doesn’t mean the IRS is done sending payments: Some taxpayers will be entitled to a check when they file their 2021 tax return next year.
Who gets the check in 2022? Eligible parents who welcomed a newborn into their family during the 2021 calendar year. The $1,400 payments sent out earlier this year were based on 2020 tax returns—which, of course, didn’t include 2021 newborns. Both Coins2Day and Insider confirmed earlier this year that a stimulus check would go out to eligible parents of 2021 newborns once they file their tax return next year.
Of course, parents would still need to meet the income requirements. For single filers, that means making no more than $75,000 per year in adjusted gross income, while couples filing jointly could still get the full $1,400 check for each of their 2021 newborns if their income is less than $150,000. Taxpayers earning above those levels would see their checks reduced, however, and they’d be completely phased out if they’re a single-filer earning above $80,000 or a couple filing jointly earning above $160,000.
That’s not the only potential money awaiting these parents. The same $2.2 trillion package that sent millions of Americans the $1,400 stimulus check, also upped the child tax credit for one year. For children age 5 or younger, eligible parents get $3,600 (up from $2,000 in past years). Up to half of that credit is coming this year to eligible parents through the form of monthly advances between July and December. The exception? Parents who opt out, or parents of children born in 2021. Instead, eligible parents of newborns will get their $3,600 payment factored into their 2021 taxes when they file next year. For more information on the eligibility requirements of the expanded child tax credit, go here.
In all, that means eligible parents welcoming a newborn into their families this year could see an additional $5,000 credit on their 2021 tax return.
More finance coverage from Coins2Day:
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