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You can get Extra Stimulus Money if you had Baby in 2020

Jan 02, 2021 07:25 AM EST

You can get Extra Stimulus Money if you had Baby in 2020
(Photo : Photo by Jeff Fusco/Getty Images) Economic stimulus checks are prepared for printing at the Philadelphia Financial Center May 8, 2008 in Philadelphia, Pennsylvania. One hundred and thirty million households are eligible to receive a tax rebate check under the $168 billion economic stimulus plan.
You can get Extra Stimulus Money if you had Baby in 2020
(Photo : Photo by Sean Gallup/Getty Images) Single mother Nancy Kett, 19, cradles her 11-month-old daughter Lucy in the playroom of the "Jule" facility for single parents in Marzahn-Hellersdorf district on October 5, 2012 in Berlin, Germany. The Jule project helps single parents by helping them to find jobs, job training and housing, advice on child development and day care in Marzahn-Hellersdorf, a district in east Berlin with high levels of unemployment and social problems. Currently 14 single mothers and one single father are participaring at Jule, which opened its doors in the spring of 2012.

Do you have a baby that was born before Dec. 31, 2020? If your answer's yes, here's an extra stimulus money tip (that you might not know of) that you can legally do. 

Who needs an extra stimulus money?

You can get Extra Stimulus Money if you had Baby in 2020
(Photo : Photo by Sean Gallup/Getty Images)
Single mother Nancy Kett, 19, cradles her 11-month-old daughter Lucy in the playroom of the "Jule" facility for single parents in Marzahn-Hellersdorf district on October 5, 2012 in Berlin, Germany. The Jule project helps single parents by helping them to find jobs, job training and housing, advice on child development and day care in Marzahn-Hellersdorf, a district in east Berlin with high levels of unemployment and social problems. Currently 14 single mothers and one single father are participaring at Jule, which opened its doors in the spring of 2012.

Having a family amid Coronavirus pandemic is not the best choice to have. Each family will have more people, which also means that expenses could triple at the same time. 

Here's a good news, though. If you had a baby before Dec. 31, 2020, you might have a chance to get an extra stimulus money from the US government. 

Dependent children that are 16 years or younger, according to law, are entitled to receive stimulus money from the government-- that will be sent to their parents. 

Thus, babies that are born before 2020 ends, along with parents that qualify income limits will have an extra $1,100 stimulus fund. 

To get this: parents need to file a tax return and get it as a refund recovery credit. This rule also applies to adopted kids in 2020. 

Who may get it

You can get Extra Stimulus Money if you had Baby in 2020
(Photo : Photo by Jeff Fusco/Getty Images)
Economic stimulus checks are prepared for printing at the Philadelphia Financial Center May 8, 2008 in Philadelphia, Pennsylvania. One hundred and thirty million households are eligible to receive a tax rebate check under the $168 billion economic stimulus plan.

Unfortunately, not every parent can have this extra $1,100 stimulus money. They must first identify if their income is above or below the salary limit. 

According to Nasdaq, for every $1 their parents earn above the limits, the payments will be reduced by $0.05. The limits are as follows:

  • $75,000 if you're a single filer.
  • $112,500 if you're head of household.
  • $150,000 if you're married and file a joint return.

Nasdaq also applied an example, in order to clearly understand the principle:

"Let's say you're married and file jointly with an income of exactly $150,000. Based on your 2019 returns, you would have gotten $2,400 for you and your spouse from the CARES Act, and you'll get $1,200 in the second round. If you have one child who was born in 2020 and your income doesn't change, your actual stimulus payments will be $2,900 and $1,800. You'll get the $1,100 difference as a credit when your tax return is processed."

Are you qualified for the extra $1,100 stimulus money?

RELATED ARTICLE: Your Second Stimulus Check Might Be Smaller with These Situations




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