Last week Congress passed a $1.9 trillion relief bill that included a $1,400 check for most Americans, with an additional check for their adult and child dependents. But after those checks are paid out, new parents might be entitled to another check if their household grows this year.
That’s because eligible parents qualify for another $1,400 check if they have a child any time in 2021. That check wouldn’t come until after taxpayers file their 2021 taxes next year, provided they meet the other eligibility requirements. A Democratic aide confirmed these details to Fortune on Monday.
Currently the IRS is in the process of sending checks to eligible Americans. Individuals making up to $75,000 per year qualify for a $1,400 stimulus check, while couples filing together earning up to $150,000 can get a $2,800 check. Taxpayers can also expect a $1,400 check for each dependent if they fit within those income levels—So for a family of four making up to $150,000 per year, that stimulus payment would be $5,600. Americans can check the status of their direct payments on the “Get My Payment” portal on the IRS.gov website.
Compared to the two prior rounds of checks, however, the $1,400 payments phase out more quickly. Individuals earning over $80,000 and couples filing together making more than $160,000 do not qualify for a check.
Just like with the two relief bills in 2020 that sent out $1,200 and $600 checks to Americans, this latest package uses taxpayers’ most recent tax filing with the IRS to determine income eligibility—either 2019 or 2020. Because filers may have had a change in income or family size in 2020 that wasn’t reflected on their 2019 or 2018 tax returns, they could be eligible for the Recovery Rebate Credit when filing their 2020 taxes, which could earn them more stimulus money. This most recent package works the same way: If a taxpayer had a child in 2021 that would not be reflected on their 2020 tax return, they could qualify for those extra funds once they file their 2021 taxes next year.
“The recovery rebate credit for an eligible dependent is $1,400 this round, so they’d receive that amount with their 2021 tax return,” Andy Phillips, director at The Tax Institute at H&R Block, told Fortune via email.
