Many American families may be entitled to a tax credit worth up to $8,000 in 2022.
If they have kids under the age of 13 and make less than $125,000, they can claim the credit.
It’s called the child and dependent tax credit and helps families with expenses for their children while they work to provide.
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The credit also works for dependents with disabilities.
How much can I claim and how do I get the tax credit?
Before 2021, the claim was worth up to $6,000 for two or more kids.
The American Rescue Act has increased that amount to $8,000 for one child and $16,000 for multiple children.
The number of qualifying expenses has been boosted to 50% from 35%.
Now $4,000 in expenses can be claimed for one child and $8,000 for two.
More people qualify for the credit this year as well.
People making $125,000 or less can claim the cash, when before it was only $15,000.
Parents with an income of over $125,000 will see the 50% credit percentage drop as income increases.
It’s reduced to 20% if an AGI is between $183,000 and $400,000.
Once your income passes $438,000 you can no longer qualify for the credits.
These credits are only available for children under the age of 13.
This cash may be claimed when you file your taxes.