But what about the extra $500 youll get for each child under 17?
The rules around those payments are a little more tricky.
People beganreceiving coronavirus stimulus checksthe week of April 13 via direct deposit.
This post refers to stimulus checks issued in 2020. For the most up-to-date info, check out ourrecent tax articles.
I have custody of my grandchild.
Will I get the $500 credit for them?
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I had a baby in 2020.
Will I get the extra $500?
The stimulus checks are technically a credit for 2020 taxes.
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3.
What if my child was born in 2019, but I still havent filed my 2019 return?
The IRS will use your 2018 return to determine your stimulus payment if you havent yet filed for 2019.
My child turned 17 in 2019, but I havent filed my 2019 tax return.
Can I still get the extra $500 for him?
The jurys still out on this one.
What we dont know is what tax year the IRS will be looking at here.
Well update this post once we know more.
I claim my college kid as a dependent.
Do I get the extra $500, or do they get their own $1,200 check?
The bill is clear that only children ages 16 and younger qualify for the $500 payment.
We just dont know exactly when someones 17th birthday would make them ineligible.
Even if you claim your child as a dependent, they wont qualify if theyre 17 or older.
To get the $1,200 stimulus payment, you cant be claimed by someone else as a dependent.
That means a lot of young adults wont get the money.
Same goes for other adult family members you claim on your tax return.
Is there a limit on how many children I can get the additional $500 for?
Is there an income limit for receiving the $500 per child payment?
Yes, but the way it works is confusing.
Now, lets say you and your spouse make $151,000.
Your credit will be $2,850.
The 5 cents on the dollar phaseout isnt happening separately for the $2,400 and the $500.
It reduces the overall $2,900 payment.
But what if your income reaches $198,000?
By this point, the $2,400 for you and your spouse has been completely eliminated by the phaseout.
OK, now suppose that your AGI was $199,000, not $198,000.
Thats when it starts to cut into the $500 tax credit.
Your familys total stimulus payment will now be $450.
Is the credit taxable?
None of the stimulus payments will be taxable.
My ex and I share custody of our kids.
Who will get the $500?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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