If your family welcomed a new addition last year, you could be eligible for a huge refund this tax season.
The IRS says if you adopted a child, had a baby, or became a legal guardian, you might be able to add $5,000 in your refund due to two new tax credits as part of the $1.9 trillion aid package President Joe Biden signed into law in 2021.
According to USA Today, to be eligible, you must meet the following criteria:
- Parents or guardians must not have received advanced Child Tax Credit payments on behalf of the child in 2021 (worth $3,600 total for children under age 6).
- The new family member did not receive a $1,400 stimulus check in 2021.
- Your family doesn’t exceed the income guidelines.
To get the $1,400 stimulus check for your new addition, single filers must have made up to $75,000 per year, $112,500 per year if filing as head of household, or $150,000 per year if married and filing a joint return.
To get the $3,600 child credit tax, single filers made less than $200,000 per year, and couples filing jointly must have made $400,000 or less in adjusted gross income.
To get the money, the IRS says you'll need to add in the Child Tax Credit and file a Recovery Rebate Credit on the tax form.