Parents who welcomed a child in 2020 can use their little bundle of joy to bring in a bit of extra cash on their tax returns later this year.
Because the two rounds of stimulus checks were based on IRS tax returns that were filed in 2018 and 2019, parents of children born in 2020 did not receive a stimulus check for their child, according to MSN.
Children born in 2020 will qualify for additional cash for both rounds of stimulus checks if parents meet certain criteria — an extra $500 for the first round, and $600 more for the second round.
Parents who want the extra cash and had a baby in 2020 can claim their extra $1,100 by filing a tax return. They'll then receive that $1,100 as a refund recovery credit.
However, there are limits to which parents are eligible for additional stimulus funds. According to MSN, for every $1 a parent earns above the federally-mandated limits, the $1,100 stimulus will be reduced by five cents.
Those income limits are $75,000 for a single filer, $112,500 for a head of household or $150,000 for married couples who file a joint tax return.
Click here for more information on the additional stimulus.
This story was originally published by Jeff Tavss on KSTU in Salt Lake City.
