In January, New Year's babies get all the attention, but babies born in 2020 might be getting a sweet surprise.
According to a report from MSN, children born between Jan. 1, 2020 and Dec. 31, 2020 will be eligible for up to $1,100 in stimulus money if the parents meet income limits and did not receive any stimulus checks for the child earlier in the year.
The $1,100 figure comes from the total of the two rounds of stimulus checks: The first, passed in the spring, granted families $500 per eligible child, while the newer, second stimulus package gave qualified families $600 per eligible child.
How can I get the $1,100 for a new baby?
The lump sum comes because stimulus checks have been calculated using 2018 and 2019 tax returns, which would only include dependents born before those taxes were filed. Children born in 2020 would not have been included on 2019 tax returns.
According to MSN, getting the $1,100 can be simple: When you file your tax returns, get the money the IRS owes you as a recovery rebate credit. If your 2020 income is less than it was in 2019 and qualifies you for a larger benefit, you can also claim that.
What are the eligibility requirements?
The stimulus payments for children are under income limits, just like stimulus checks for adults are.
For single filers, the income limit is $75,000; a head of household's limit is $112,500, and a married couple filing joint tax returns have an income limit of $150,000.
For those earning above those limits, the payments are reduced by $5 for every $100 of income that exceeds the limits, decreasing to zero for an individual making $99,000 or a married couple making $198,000 or more annually.