Last year, more than 169 million Americans received stimulus cheques in the third wave. The $1,400 stimulus checks, the highest payment of the three rounds, are expected to be the final of the COVID-19 direct payments, according to Capitol Hill consensus.
However, the IRS has not yet completed the third wave of mailings: When qualifying parents and guardians of 2021 infants complete their tax taxes this year, they will get another $1,400 stimulus check. That’s because the IRS utilized customers’ most recent tax return on file to send out the $1,400 checks last year—which, of course, didn’t include any children born in 2021. According to Fortune and Insider, the money will be applied to the tax returns of the parents and guardians in 2021.
Parents and guardians will still need to fulfill the income qualifying conditions in order to receive the extra check-in 2021. To qualify for the payout, single filers must earn no more than $75,000 in adjusted gross income each year, while married couples filing jointly must earn no more than $150,000. If a single filer earns more than $80,000 or a couple filing jointly earns more than $160,000, their checks will be decreased and eventually phased out.
Parents will need their IRS “letter 6475” to complete their 2021 tax returns. This form shows how much money the taxpayer got as part of the third round of stimulus payments. If you’re a taxpayer with a baby due in 2021, that form should be $1,400 less than what you’re entitled to. (This means the $1,400 will be deducted from your refund.)
How many $1,400 stimulus cheques have been issued so far? It’s difficult to estimate, but it’s likely to be in the millions. In 2020, there were about 3.61 million births in the United States; however, the count for 2021 is yet unknown.