Some Iowans Could Get An Extra $5,000 on Their Tax Return
It is officially tax filing season. We're all looking for those new deductions that could get us a bigger refund this year. There is one, in particular, that could land many Iowans an extra $5,000 on their refund. Here is how it works.
We're going to eliminate a lot of filers right now, as this extra money is eligible this year to new parents. KETV reports that the IRS says if you welcomed a new baby in 2021, adopted a child, or became a legal guardian to a child, you could receive the extra money. But you MUST meet the following criteria.
- You did NOT receive the advanced Child Tax Credit payments for the new child in 2021. For kids under the age of 6, that is worth $3,600.
- The new child did NOT receive the $1400 stimulus check in 2021.
- Your family does not exceed the income guidelines. For the Child Tax Credit, the income limit for single filers is $200,000 or less. For couples filing jointly, the limit is $400,000. For the stimulus payments, the guidelines for single filers is $75,000 or less, $112,500 or less for head of household, and $150,000 or less for couples filing jointly.
So how do you get the extra money? KETV says that even if you are not required to file taxes, do so anyway. That is how you'll get the extra money. You'll know if you need to add in money for the Child Tax Credit. You'll file what is called a Recovery Rebate Credit on your tax form to get your remaining money.
If you need more information on this new tax rule for 2021 or any of the other changes, the IRS has them all listed HERE.