If you did not file your 2020 return until late February, this very well could be why the IRS went off of your 2019 information and not your 2020 tax return information.
The third stimulus check entitles dependents to receive $1,400 each, but the IRS might not be aware of your children in some cases. For instance, if you had a baby in 2020 but haven’t yet filed your tax return, the IRS will rely on your 2019 tax return to determine how much you are owed, which won’t show the new child because they hadn’t yet been born.
Example: A couple with a baby born in 2020 should receive $4,200, but if the IRS doesn’t have their 2020 tax return, it will issue a payment of $2,800 for the two adults in the family. But IRS and Treasury officials said March 12 that families in this situation can be assured they will eventually get the additional $1,400 for their baby.
When they file their 2020 tax return, the IRS will check if they are owed more, such as in the case of a baby born last year. If that happens, the IRS will automatically issue the additional $1,400 check to the family, officials said.
Also please note - Even while some payments landed just one day after the bill was signed, the IRS has until the end of 2021 to distribute the checks, according to the legislation. So, additional funds will be coming - but the IRS has until the end of the year to complete this process.
