Connect with us

Hi, what are you looking for?

Personal Finance News

$8,000 Child Tax Credit Could Give Families Much Needed Financial Support

$8,000 Child Tax Credit Could Give Families Much Needed Financial Support

The federal government has been working at trying to get the American economy back to a healthy level, more recently with President Joe Biden’s American Rescue Plan. The plan includes multiple measures including one that would give Americans with children or dependents a stimulus check with a value up to $8,000.

American families have access to much needed financial support

The Child and Dependent Care Tax Credit was established to aid those who have incurred costs relating to parenting or caregiving. Those who qualify are dependent upon income, percentage of expenses that they incur for caring for qualified people as they go to work, look for work or attend school. However, those who have an adjusted gross income of over $438,000 are not able to receive this credit.

Those who are eligible for this Child and Dependent Care Tax Credit stimulus check include families with an income of less than $125,000 annually. These families are able to claim 50% of qualifying expenses for the care of a child under 13 or an official dependent.

Also, these families are able to claim 50% of qualifying expenses for the care of two children under 13 or official dependents.  Families who earn between $125,000 and $183,000 annually, can qualify for the stimulus check, but can only claim up to 20 percent.

The tax credit requires an actual claim in contrast to prior stimulus payments

Unlike the several stimulus checks American families have received during the pandemic, this is not an automatic payment. Those in need must actively claim this one. You must fill out the IRS Form 2441, which outlines your child and dependent care expenses.

You also will need to provide proof of the expenses you’re claiming for and possibly provide records that detail the nature of the disability of certain dependents.  While the process is a little more complicated than for some of the prior stimulus payments, with the holidays coming up, these payments could be well worth pursuing to receive some much-needed extra cash.

Eligible families who opted out of the monthly child tax credit payments and instead opted for a larger sum down the road can now receive $1,800 per child on December 15.

 

 

 

 

 

 

 

1 Comment

1 Comment

  1. Pingback: Poverty Levels Likely To Increase After The Child Tax Credit Payments End - Chronicle News

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Us News

The Social Security beneficiaries are worried about the fate of payroll taxes in 2022. Several factors are involved in calculating these taxes, including wages,...

Personal Finance News

As per as.com, more than 169 million stimulus checks were given out to approved Americans in the third round, and some are calling for...

Us News

Credit cards are convenient and yet they are not for everyone. If you are someone who misses payment deadlines, you should avoid credit cards...

Cryptocurrency News

Walmart is the latest big business house to enter the world of Cryptocurrency and NFT. The retailing giant is taking the first tentative steps...

Us News

When it comes to personal finance, the first thing that any expert will tell you is not to earn more, but to save more....

Us News

The US families have received half of the child tax credit payments in 2021; IRS will issue the remaining payments while the parents file...