It seems unlikely that the United States will see a fourth wave of direct stimulus payments, but there is a group of Americans who may be eligible for a substantial quantity of money worth $5,000 this year. Those who welcomed a child within their family in 2021 may be entitled to the increased payments.
Extra $5,000 worth of Stimulus
According to USA Today, the IRS may award a $5,000 tax credit to taxpayers who welcomed a new family member in 2021. In any case, whether the child is biologically derived or the result of legal guardianship, new parents can celebrate in their increasing family during tax time if each of the following conditions is met:
- Children under the age of six are eligible for the Child Tax Credit, which is worth a total of $3,600 if did not receive by the child’s parents or guardians in 2021.
- The family’s adjusted gross income does not exceed the established limits.
- A $1,400 stimulus check was not given to the new family member in 2021.
As reported by Al.com, the $1,400 stimulus check is available to families who have added an older dependent, such as a parent who adopted a child who is over the age of six. A smaller amount of $3,000 is available to families who have added a child between the ages of 7 and 17.
How to Receive These Payments?
As per Fool.com, Americans should file a tax return for the year 2021 regardless of whether they are compelled to do so. It is through their tax return that the IRS will learn that their family has expanded and will know to credit their refund with the Child Tax Credit.
Moreover, in order to receive a $1,400 stimulus payment on behalf of the dependent, they must claim a Recovery Rebate Credit on the dependent’s income tax forms. Additionally, these funds will be credited to their account.