$8,000,000 Stimulus Check Coming After Thanksgiving
The American Rescue Plan Act of 2021 aims to support the country’s economic and health recovery from the devastating effects of COVID-19. With a price tag of nearly $2 trillion, this economic bailout will be one of the most expensive in US history. President Joe Biden signed the US bailout plan in March and has since distributed hundreds of millions of dollars to the people of the United States.
The Child and Dependent Tax Credit
If you have a child or dependent, you may be eligible for up to $8,000 under Joe Biden’s American Rescue Plan, one of the less discussed initiatives. According to MARCA, this tax credit is intended to help families who incur additional expenses because they are parents or guardians. While it may take some time to check paperwork, families can receive their money in time for the holidays.
When taxpayers pay for childcare out of their own pocket, they qualify for the Child and Dependency Credit. The credit is available to individuals and their spouses who care for an eligible child or a disabled dependent while working or seeking employment. All eligible expenses are subject to a different percentage of the tax credit, depending on a person’s income level.
According to CNBCIn the past, families could deduct up to $6,000 in expenses, with each dependent being able to claim up to $3,000 in expenses. On the other hand, the US bailout plan increased eligible costs to $8,000 per person for 2021, capped at $16,000.
The Child and Dependent Care Tax Credit incentive check is available to families earning less than $125,000 per year. According to The sun, health care costs for an officially dependent child under the age of 13 can be reimbursed up to $8,000 per year. 50 percent of eligible expenses up to $16,000 are reimbursed to care for two children under the age of 13 or official dependents. In addition, families earning between $125,000 and $183,000 per year can claim up to 20 percent of their annual income in Social Security benefits.
Read related article: $1,100 surprise stimulus check in December, will it hit your bank account?