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.


KEEP READING: See the richest person in every state

LOOK: Here are 25 ways you could start saving money today

These money-saving tips—from finding discounts to simple changes to your daily habits—can come in handy whether you have a specific savings goal, want to stash away cash for retirement, or just want to pinch pennies. It’s never too late to be more financially savvy. Read on to learn more about how you can start saving now. [From: 25 ways you could be saving money today]

More From 98.1 KHAK