Parents may get up to $5,000 baby bonus

Those who had a baby in 2021 may be eligible to get a tax return of up to $5,000 this year.

This is due to two tax credits included in the $1.9 trillion assistance package put into law by President Joe Biden in 2021. According to Andy Phillips, director of the Tax Institute at H & R Block, parents who fulfill the eligibility requirements would get $3,600 in tax relief due to an enlarged child tax credit, as well as a $1,400 stimulus check for their dependent children.

Families who qualify may claim their baby as a dependent on their taxes this year and receive both the child tax credit and the stimulus payment if their child was born before the end of 2021 and their taxes are filed by that date.

The $1,400 stimulus check was already sent to many families, but since the payments were an advance on a 2021 tax credit, qualified parents may get the payout for their baby this year when they file their taxes.

The start of tax season is set for January 24. Parents should also keep an eye out for a letter from the Internal Revenue Service (IRS) providing key information about the child tax credit so that they can verify that their return is correct.