- American families can receive a check of up to $ 8,000 in child care support for fiscal year 2021 thanks to a new law.
- These credits are intended to financially support working families to compensate for high expenses.
- Payments will go to each family earning less than $ 125,000 equivalent to 50% in qualified expenses related to the care of a dependent.
President Joe Biden’s American Rescue Act, passed last March, included a provision to expand tax credits for child and dependent care. Who is eligible for the $ 8,000 check?
Many aids have been granted this year, such is the case of the child tax credit that offers monthly payments of up to $ 300 per child, however, other aid, the child and dependent care taxes also increased sharply for eligible families.
Eligible families will be able to get a check for $ 8,000
The tax credits for the care of children and dependents are intended to financially support working families to offset the high expenses when they must support both a child and a dependent or disabled person, reported The Sun.
In previous years the maximum that a family could claim for two or more children or dependents was $ 6,000, however, thanks to President Biden’s plan, the amount of federal aid increased in 2021. Eligible families will be able to claim credits for expenses of up to $ 8,000 for one child and $ 16,000 for multiple children.
Who is eligible for the $ 8,000 check?
The U.S. government will award each family earning less than $ 125,000 the equivalent of 50% in qualified expenses related to the care of a child under the age of 13 or a spouse, parent, or dependent who cannot care for himself, up to an amount of $ 8,000 dollars.
In the past, the income threshold was only $ 15,000. The increase in the threshold means that many more families can access the large federal aid. Likewise, those with a gross income of between $ 183,000 and $ 400,000, the payment would be reduced to 20%. Those families who earn more than $ 438,000 a year will be exempt from the aid.
Receive up to $ 16,000
The payment of up to $ 8,000 is for a single dependent, but in the event that a family cares for two or more eligible dependents, then they may receive assistance of up to $ 16,000 dollars for care expenses.
These are the maximum aid amounts for those who earn less than $ 125,000 annually. However, if a family earns between $ 125,000 and $ 183,000 annually, it could still qualify, although it would only receive the equivalent of 20% of the expenses, he explained. iHeart.
How to claim the $ 8,000 check?
For monthly Child Tax Credit checks, the IRS typically does not require any action on the part of the beneficiary. However, to receive dependent care assistance, yes. The check for up to $ 8,000 can be claimed on your next tax return in 2022.
The IRS requires families to complete Form 2441 and to prove their income and provide information on the expenses they incur for the care of their dependents. Also, the IRS said the payments are “potentially refundable,” meaning you can get a refund if you don’t owe taxes, as long as you meet other requirements.
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