How to Claim Missing Stimulus Checks for 2020 Babies

Due to the coronavirus pandemic, people are struggling with their finances. Some parents lost their jobs, and others had to juggle balancing their finances.

Through it all, the government paved a way to stimulate the economy through stimulus checks.

Last year, two checks were released. One of these checks served as assistance to parents of 2020 babies. Whether these babies were born or adopted from January 1 to December 31, 2020, then the parents are eligible for a stimulus check of $1100.

How to claim missing stimulus checks for 2020 babies

1. File the 2020 tax return.

According to CNET, this is the simplest way to recover any missing stimulus checks is by filing the 2020 tax return.

When the 2020 return is filed, the IRS can use one's information so that they can process your stimulus benefits.

Through this, parents can get the money by a refund recovery credit.

2. Try to trace the payment

If due to an IRS error, the better way to look for the check is through a payment trace.

However, if the missing check is for a new dependent, then a Recovery Rebate Credit might be the way to go. This step is also a great way to address discrepancies between how much money you are still owed and how much you receive.

Why were stimulus checks for parents of 2020 babies delayed?

According to a report from CBS 42, the extra cash for parents of 2020 babies may have been missed out because the Treasury and IRS used the 2019 returns.

For the automatic payments, the calculation did not include the babies born or adopted in 2020, which is why the checks were delayed.

A third stimulus check is on the way

Aside from the stimulus checks for parents of 2020 babies, new stimulus money is on the way. The details of this are still being ironed in Congress.

This grant is part of the American Rescue Plan — President Joe Biden's relief package amounting to $1.9 trillion. The third check would grant parents a maximum of 1400 US dollars for every qualifying dependent. The Senate has yet to confirm other details of this third check.

How to spend the stimulus checks

First thing's first: do not feel bad if you had to spend the money for bills or bulk up your emergency fund.

If parents are financially stable, they could use the money to invest on behalf of their children. One thing that they could do is to save the money as part of children's college funds — think about long-term investments that would benefit the child.

There could be a number of ways on how parents can spend the money. But whatever way, it should be something that would benefit the entire family.