WASHINGTON (WKRC) – Those who welcomed a new baby to their family in 2021, could qualify to receive up to $5,000 on their tax refund this year.
This is due to two tax credits in the $1.9 trillion aid package President Joe Biden signed into law in 2021. Parents who meet eligibility requirements would receive $3,600 thanks to an expanded child tax credit and a $1,400 stimulus check for dependents, according to Andy Phillips, director at the Tax Institute at H&R Block.
Eligible parents qualify for both the child tax credit and stimulus check as long as their baby was born by the end of 2021 and they claim the newborn as a dependent when they file their taxes this year.
Many families already received the $1,400 stimulus check, but because the checks were an advance of a 2021 tax credit, eligible parents can receive the payment for their newborn this year when filing taxes.
Tax season begins Jan. 24. Parents should also keep an eye out for a letter from the IRS outlining important information on the child tax credit so they can ensure their return is accurate.