American Rescue Plan

[terribarrera]

We received $5600 in March of 2021 for the American Rescue Plan. Basically the third stimulus payment. It was $1400 per person totaling $5600 for our family of 4. We had a baby in October of 2021 and therefore can claim the baby for the whole year of 2021 per IRS.  So in doing our taxes it asks how much we received and then says we should have received $7000.  $1400 x 5.  So basically they are giving us another $1400 even though the baby came after the stimulus payments were made.  So are we entitled to this extra credit???  HELP 

[rjs · Accepted solution]

Yes, you are entitled to the additional credit. The Recovery Rebate Credit is based on your 2021 tax return. The stimulus payment was an advance payment of the credit, but if your situation changed later in the year you get the additional credit on your tax return. The date that the payments were sent out is not a cutoff date.

[LeonardS · Accepted solution]

Yes, Parents, or guardians who added a new dependent in 2021, can claim a recovery rebate credit to receive up to $1,400 for each child born in 2021 for whom they didn't receive a third-round Economic Impact Payment.