THOUSANDS of families who welcomed a new baby into their family last year may be eligible for up to $5,000 in tax refunds this year.
Here’s how to find out if you’re eligible and how to apply for more economic stimulus.
The $5,000 payment all comes down to two tax credits in a $1.9 billion aid package that President Joe Biden signed into law in 2021.
Andy Phillips, director at the Tax Institute at H&R Block told Local 12 that parents who meet the eligibility requirements will receive $3,600, thanks child tax credit extension – plus a $1,400 stimulus check for their dependents.
Eligible parents are eligible for both the child tax credit and the stimulus check if their child is born in late 2021.
When they file a tax return this year, they can claim the newborn as a dependent.
Many people received stimulus checks for $1,400.
However, because the check is an advance of the 2021 tax credit, eligible parents can bank their infant payment this year.
Tax filing season begins January 24.
But parents should look out for the IRS letter with important information about the child tax credit to make sure their return is accurate.
Read ours Child tax credit live blog for the latest news and updates…
Meanwhile, some struggling families may be eligible to receive payments of up to $1,400 in the early months of 2022.
Economic impact payments may still be offered to non-taxpayers to qualify for stimulus checks in 2021, and some may qualify for “plus” stimulus payments ” and earned income credit.
Taxpayers who have not filed a tax return in recent years who choose to file in 2021, should be able to ask $1,400 economic impact payments.
That group of eligible taxpayers also includes people who have had dependent children in 2021, change their income threshold, but have yet to file.
Payment must be sent in person through the vehicle the taxpayer has chosen to receive the refund, by mailed check or in person.
Another incentive to file a tax return is Earn income tax credits.
The earned income tax credit is available to low-income working families as well as low-income workers without children.
Credit equals a fixed percentage of earnings from the first dollar until the credit is maxed out.
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https://www.the-sun.com/money/4523443/americans-eligible-stimulus-child-tax-credit-payments-2022/ Thousands of Americans eligible for $5,000 stimulus checks and child tax credit payments by 2022