IRS: Parents of kids born in 2021 can claim stimulus as recovery rebate credit

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(WJET/WFXP/YourErie.com) – The IRS reminds parents of children born in 2021 that they can claim a recovery rebate credit of up to $1,400 per child from the third stimulus check that was sent to Americans in March 2021.

The Internal Revenue Service (IRS) released guidance Wednesday on how to claim any remaining stimulus payments on your 2021 tax return under the 2021 Recovery Rebate Credit.

Parents of a child or children born in 2021 – or parents and guardians who added a new child to their family in 2021 – who did not receive a third-round economic impact payment for that child can be eligible to receive up to $1,400 per child per claiming the recovery rebate credit.

The Third Round Economic Impact Payments were advance payments of the 2021 Stimulus Rebate Credit. In late January, the IRS began issuing Letter 6475 to recipients of the Third Round Economic Impact Payment. This letter will help economic impact payment recipients determine if they are eligible and should claim the recapture 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 economic impact payments. The IRS began issuing these payments on March 12, 2021.

Some taxpayers may not have received the full amount of their third-round economic impact payment because their situation in 2021 was different than in 2020. These individuals may be eligible to receive more money by claiming the rebate credit. 2021 payback on their 2021 income tax return:

  • Parents of a child born in 2021 who claim the child as a dependent on their 2021 tax return may be eligible to receive a 2021 recovery rebate credit of up to $1,400 for that child.
  • All eligible parents of eligible 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 tax return.
  • Families who added a dependent – ​​such as a parent, nephew or niece or grandchild – on their 2021 tax return who was not listed as a dependent on their 2020 tax return may be eligible to receive a 2021 recovery rebate credit of up to $1,400 for that dependent.
  • Single filers who had incomes above $80,000 in 2020 but below that amount in 2021; married couples who filed a joint return and had incomes above $160,000 in 2020 but below that amount in 2021; and head of household filers who had incomes greater than $120,000 in 2020 but less than that 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 rebate credit for trade-in in 2021.

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According to the IRS, “Get My Payment” will no longer be available beginning January 29, 2022, and individuals are encouraged to access their account online to view their first, second, and third economic impact payment amounts under of the corresponding tax year. tongue.

The IRS encourages taxpayers to file electronically and choose direct deposit as the fastest way to receive their 2021 tax refund.


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