You may qualify for a tax refund of up to $5,000 if you have a new baby in your family in the year 2021.
As a result of two tax credits included in the $1.9 trillion aid package signed by President Biden in 2021, parents could receive this huge sum.
H&R Block’s Andy Phillips, director of the Tax Institute at H&R Block, said that eligible parents will receive $3,600 through the expanded child tax credit and $1,400 as a stimulus check for dependents, according to a report from local12.
As long as the baby was born by the end of 2021, parents will be eligible for both the child tax credit and the stimulus check.
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When you file your taxes this year, you can claim your newborn as a dependent.
In addition to the $1,400 stimulus check, eligible parents can receive the full payment when they file their tax returns this year because the checks were an advance of a 2021 tax credit.
Jan. 24 marks the start of tax season.
Make sure that you are conscious of any letters from the IRS outlining important information regarding the child tax credit.
“The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly,” IRS stated in a news release.
“Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit.”