Many Americans can qualify for a stimulus check worth as much as $8,000.
The child and dependent tax credit will allow qualifying Americans to claim up to $8,000. This is happening thanks to the American Rescue Act.
Parents filing jointly with an income that does not exceed $125,000 could qualify if they have at least two kids under age 13.
The credit helps offset the costs of raising children and providing care.
How much can I get from the child and dependent care credit, and how do I claim it?
Before 2021 the credit for two kids was a maximum of $6,000.
The amount increased under the American Rescue Act, but many Americans are unaware.
The percentage of qualifying expenses that may be claimed has risen from 35% to 50% this year.
Millions of Americans will qualify this year, many more than in previous years.
Before now parents needed an income of $15,000 or less to qualify, but that has been changed to $125,000.
If your income exceeds $125,000, 50% credit percentage is reduced.
For anyone with an income between $183,000 and $400,000, it’s then reduced to 20%.
Now, families with an income over $483,000 are ineligible to claim the credit.
The IRS made the change, despite those making that much previously qualifying.
This credit only applies to families who’s children are under age 13 and it is not automatic like the child tax credit payments. Parents need to claim the credit when they file their 2021 tax return.
Even if one of the two parents were out of work, they can still claim the credit due to expenses being created for them to go out and look for work.
This includes things like childcare, or babysitters.
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