Thousands of families will be able to claim a $5,000 payment

• Thousands of families in the United States will be able to claim a generous $5,000 refund.
• The Internal Revenue Service (IRS) began receiving 2021 tax returns on January 26th.
• Parents of newborns could get payments.

IT’S A FACT! Thousands of families in US can claim a generous $5,000 dollar refund on their 2021 tax return. The sooner you file, the sooner you could get your big refund. So how do you know if you qualify for this money?

The Internal Revenue Service (IRS) began receiving 2021 tax returns on January 26th, kicking off tax season. This brings the opportunity for millions of families to claim various types of aid that were approved last March as part of the American Rescue Plan.

Thousands of families will be able to claim a $5,000 refund

In 2021, millions of families began receiving advance Child Tax Credit payments from the government. Now, those parents who welcomed a new baby last year may not realize they are entitled to even more tax benefits.

These parents could receive a refund of up to $5,000 dollars for their newborn children, noted The Sun. Of course, to get the money they will first have to file their 2021 tax return where they must claim their new addition as a dependent.

Why $5,000 dollars?

Andy Phillips, director of the Tax Institute at H&R Block, explained to Local 12 that parents who had babies in 2021 could receive up to $5,000 if they claim the child as a dependent on their tax return.

The money comes from the Child Tax Credit, from which they could get up to $3,600, and from the third economic stimulus check, from which they could receive the $1,400 stipulated for dependents. If the baby was born in late 2021, the parents could be eligible for both benefits.

How to claim the Child Tax Credit?

If your child was born after July 2021, you probably haven’t had a chance to claim them as a dependent to the IRS, so you also didn’t get the monthly advance checks of up to $300 that were to parents of children under six between July and December.

All families will have to claim the second half of the Child Tax Credit, up to $1,800, on their tax return. This is the opportunity for those who are eligible but have not received the money to claim the full amount of up to $3,600 on their tax return.

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