Parents that welcomed a new child to their family may not have received the dependent stimulus checks in 2021, but they can see them in 2022 along with the expanded child tax credit.
The American Rescue Act gave parents $1,400 for each household member, including dependent children.
While parent benefitted from this, many new parents did not receive the same luxury.
The stimulus checks were sent to families based on their 2019 or 2020 tax returns.
This means only families who have previously reported having dependents were sent checks by the IRS.
If you gained a dependent through child birth or adoption in 2021, you’ll be able to claim the child on your 2021 tax return and get the stimulus payment for them.
The exact number of births for 2021 is unknown, but it’s expected to be similar to the number for 2020, which was 3.6 million.
Child Tax Credit and newborns
Under the American Rescue Act, President Joe Biden raised the credit from $2,000 to $3,600 for children under age 6 and $3,000 for children ages 5-17.
This means anyone who had a newborn and did not collect advanced child tax credit payments this year may claim the full $3,600 on your 2021 tax return.
This means news parents could see up to $5,000 per child, or $10,000 if they had twins.
Biden had hoped to extend the advanced payments and increase of credit, but the Build Back Better bill did not pass before 2022.
This means January will be the first month in 6 months parents do not see a monthly payment worth up to $300.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]