- Thousands of families in the United States could receive a surprise check of $8,000 per child after Thanksgiving.
- The amount could reach $16,000 if the parents have two or more dependents in their care.
- This program provides assistance to parents with children under 13 years old and to spouses, parents, or dependents who cannot take care of themselves.
Thousands of families in the U.S. could receive a surprise check for $8,000 per child after Thanksgiving. A family with two or more dependents can claim $16,000.
Thanksgiving is approaching, and it’s the ideal time to show appreciation for loved ones despite the financial difficulties in recent years. So this check for up to $16,000, which is part of the Child Tax Credit, is good news.
Families could get an $8,000 check after Thanksgiving
Previously, families could only claim up to $6,000 even if they have two or more children. This year, the Child Tax Credit has been updated through the American Rescue Plan, which the U.S. Senate approved last March.
The new legislation approved a payment of up to $8,000 per child or up to $16,000 for two or more dependents. This program provides assistance to children under 13 and to spouses, parents, or dependents who are unable to care for themselves.
Who qualifies for this check?
In addition to the monthly advance checks of up to $300, the Child Tax Credit also provides for each family earning less than $125,000 the equivalent of 50% of expenses incurred for the care of a dependent.
Of course, these would be the maximum aid amounts that would be awarded to eligible families earning less than $125,000 annually. If a family earns between $125,000 and $183,000 annually, they could still qualify but they would only receive the equivalent of 20% of expenses, iHeart explained.
What do these childcare expenses cover?
According to the Internal Revenue Service (IRS), this aid is, “a credit allowed for a percentage of work-related expenses incurred by a taxpayer for the care of qualified persons to allow him to work or look for work,” but what does all this include?
The qualified expenses for the care of a dependent include payments for transportation, babysitters, housekeepers, before or after school programs, day care centers, and even day camps, according to The Sun.
How does a family claim the $8,000 check?
The IRS indicated that beneficiaries do not have to take any action to receive the monthly checks for the Child Tax Credit. But to receive help for the care of a dependent, families must complete Form 2441. On this form, families indicate their income and the expenses they incur in caring for their dependents.
In addition to dependent care funds, the IRS continues to send monthly advance checks to millions of families and plans to do so on the 15th of each month through December. The last scheduled advance payment will go out on December 15.
Up to what age do children qualify for the Child Tax Credit?
Child Tax Credit payments are available to families with children up to 24 years! Although the advance monthly checks are only provided to young people up to 17 years old. Smaller amounts of aid are also available for older individuals, as stated in The Sun.
Congressman Steve Cohen explained that, “age is determined on December 31, 2021. If your child turns 18 this year, then he or she is not eligible for the monthly Child Tax Credit. However, the American Rescue Plan provided a one-time $500 credit for dependent children age 18 and for dependent full-time college students ages 19–24.”
Who qualifies for the Child Tax Credit?
According to the IRS, couples earning less than $150,000 annually or single parents earning less than $112,500 annually qualify for maximum aid. Parents of dependent youth ages 17–24 also qualify for $500.
The American Rescue Plan indicates that eligible families this year may receive up to $1,800 for each child under the age of 6 and up to $1,500 for each child between 6 and 17. That is, the monthly advance payments that will arrive between July and December will be up to $300 for children under 6 years old and up to $250 for children between 6 and 17.
How does the Child Tax Credit work?
According to the legislation passed in March, families will receive up to $3,600 for each child under 6 years old and up to $3,000 for each child between 6 and 17 years old. The first half of that money will come through the six monthly advance payments from July to December. Parents will have to claim the $1,800 remaining next year when they file their 2021 tax returns.
To determine your eligibility, the IRS will use the information you provided on your 2020 or 2019 tax returns. If you are still unsure whether you qualify to receive these checks, the IRS recommends using the Eligibility Assistant for advance payments of the Child Tax Credit. They will ask you for some personal information to confirm if you are eligible or not.
Refuse help or make modifications securely
Some families prefer to decline the assistance or change their payment method from a physical check to a direct deposit. It is already late for the October payment, but if you plan to make modifications later, you can follow the following calendar: until November 1 for the November 15 payment and until November 29 for the December 15 payment.
To securely make these changes, the IRS recommends visiting the Child Tax Credit Prepayments in 2021, where people can get more details that allow them to seamlessly make changes to the Child Tax Credit Update Portal. Families could receive a surprise check for $8,000 after Thanksgiving.
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