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The initial stimulus payment provided up to $1,200 per qualifying adult and up to $500 per qualifying dependent. An incarcerated individual may claim a 2021 Recovery Rebate Credit if all eligibility requirements are met and the individual files a 2021 tax return even if not required to file - to claim the credit. For exceptions to this requirement, see. Parents of children born this year and those who have a new dependent in 2021 could receive an additional $1,400 on top of their tax refund in 2022 because of the American Rescue Plan. Employers may claim a 50 percent tax credit on the wages paid to employees from March 13 to December 31, 2020, up to a maximum of $5,000 credit per employee (applied to $10,000 of employee wages). Back to top, If a taxpayer has not already filed a 2019 return with the name and Social Security Number (SSN) of the eligible dependent being claimed, the filer will not receive credit for those dependents born after they filed their 2018 return. Limited time offer. Back to top, The new law incentivizes states to end one-week waiting periods by providing 100 percent federal financing of the first week for states without one-week waiting periods. If you are attempting to claim part or all of the credit on your 2020 tax return, the credit will be based on your 2020 tax information. Tax professionals agree we will need additional guidance from the US Treasury as to which children qualify based upon their age (for example a child born in 2003 or earlier will be 17 or older in 2020 and therefore will not qualify for the $500 Recovery Rebate, but as of 2019 (or 2018) they might be under age 17). A6. Social Security number: Individuals who did not have a Social Security number in 2021 but are issued one by the due date of their 2021 tax return (including an extension if the extension was requested by the due date) may now be eligible. Erica York is Senior Economist and Research Manager with Tax Foundations Center for Federal Tax Policy. (updated December 10, 2021), Q B4. Who determines if I qualify for the benefits? (The IRS will use 2018 tax return information if the taxpayer has not yet filed for 2019.)