PARENTS are set to receive $3,600 per child in tax credits this year – including those who have had babies in 2021 – as part of the latest stimulus package.
Under the new plan, as noted by CNET, each child had been updated from $2,000-$3,000 in credit, with kids under the age of 6 eligible for $3,600.
For 2021, this will include babies born in the same year, unlike babies born in 2020, who were forced to wait until their tax returns were filed.
This year, once the dependents have been reported to the IRS, families who filed their taxes before the May 17, 2021, tax deadline will get checks automatically.
The checks are scheduled to be paid out in two phases, rather than all at once like the stimulus checks of the past.
The first phase will include monthly checks from July-December.
The second phase will be paid out alongside the rest of your 2021 tax return once it is filed in 2022.
For babies who are on the way IRS has promised an option to start families receiving payments before the baby arrives.
The IRS plans to open and run an online portal for people to report any change in status, whether that be income or dependants, throughout the year.
Alongside the amount of dependents, their are other eligibility requirements for the additional credit.
Both the parent filing and the dependent must both be US citizens with valid Social Security numbers.
The age for the dependent will be set by December 31, 2021, so if a child was turning seven in 2022, they would still be considered as six for the credit purpose.
The stimulus plan comes along with a third stimulus check as well.
The portal has been announced to be up and functional by July 1, 2021.
The IRS historically has only given out lump sums, instead of monthly allotments, and so this will be another adjustment during Covid-19.
