A fourth stimulus payment will be sent this year, but only to families or guardians who had a baby in 2021. Under the American Rescue Plan, they will get $1,400 for each kid.
$1,400 Stimulus Check Included in the $1.9 Trillion Relief Bill
In a recently published article in Yahoo News, most Americans will receive a $1,400 payment as part of the $1.9 trillion rescue package, plus an extra check for their adult and kid dependents. However, if their family expands this year, new parents may be eligible for another payment once those checks are handed out.
That is because if a kid is born in 2021, eligible parents will get a second $1,400 payment. If all other qualifying criteria are met, the payment will arrive after individuals file their 2021 taxes next year, according to a published article in Fortune.
IRS Started To Send the $1,400 Stimulus Check, Who Qualifies?
The IRS is now in the process of distributing payments to qualified Americans. Individuals earning up to $75,000 per year are eligible for a $1,400 stimulus payment, while married couples earning up to $150,000 are eligible for a $2,800 stimulus benefit.
If you make up to $150,000 per year, you may anticipate a $1,400 check for each dependent. So, for a family of four earning up to $150,000 per year, the stimulus payment would be $5,600. The IRS.gov website’s “Get My Payment” interface allows Americans to monitor the status of their direct payments.
Meanwhile, the IRS has no means of knowing whether you’ve had a child. Families would inform the IRS of the additional dependant when filing their 2021 tax forms. This is particularly essential for families that don’t submit a tax return on a regular basis. You may only claim the money if you submit a tax return.
All of the restrictions that applied to the first $1,400 payment apply to this one as well. Single filers have earnings up to $75,000 and married joint filers with incomes up to $150,000, according to the IRS. Payments are decreased once certain income limits are reached. The number of dependents you may claim for this payout is unlimited. If you’re the proud parents of new twins, you may get $2,800 when you submit your tax return in 2021.
Important Information You Need To Know About the $1,400 Stimulus Check
The $1,400 payments, however, phase off more rapidly than the two previous sets of checks. Individuals earning more than $80,000 and married couples filing jointly earning more than $160,000 are not eligible for a refund.
This newest package, like the two relief packages passed in 2020 that paid out $1,200 and $600 payments to Americans, utilizes taxpayers’ most recent IRS tax filing to assess income eligibility—either for 2019 or 2020. Because filers’ income or family size may have changed in 2020 and was not recorded on their 2019 or 2018 tax returns, they may be eligible for the Recovery Rebate Credit when filing their 2020 taxes, which may result in their receiving additional stimulus money.