Child Tax Credit Update: Surprise Incentive Payment Coming After Thanksgiving
lIn response to the devastating effects of the coronavirus pandemic, the US federal government has launched a series of stimulus programs to get the US economy back on track. Joe Biden’s US Rescue Plan includes several measures designed to achieve this, and one of the less-discussed initiatives could mean Americans with children or dependents could claim a stimulus check worth up to $8,000.
This initiative is called the tax credit for children and dependent care and it is designed to help those who have additional costs associated with parenting or care.
“The Tax credit for children and dependent care is a tax credit that can help you pay for the care of eligible children and other dependents (eligible individuals), “the IRS said of the scheme. “The credit is calculated based on your income and a percentage of the expenses you incur in caring for eligible persons to enable you to work, seek employment, or attend school.”
You can claim up to $8,000 per child or dependent thanks to the Child and Dependent Tax Rebate
In terms of who is eligible Child Stimulation Control and Dependent Care Tax Credit, families with incomes less than $125,000 per year are entitled to the following:
- 50% of qualifying expenses (up to $8,000) to care for a child under 13 or an official dependent
- 50% of qualifying expenses (up to $16,000) to care for two children under 13 or official dependents
For families earning between $125,000 and $183,000 a year, they may also qualify for this incentive check, but could claim up to 20 percent. However, that can still be a significant amount.
This money may also be refundable, meaning you may not have to pay taxes to claim the credit.
How can you claim the Child and Dependent Care Incentive Check?
It is very important to note that this is not an automatic payment. You must actively claim this.
This can be done by filling in the IRS Form 2441, sketch you Expenditure on child and dependent care. You should also enclose this form when you file your federal income tax return.
You may also be required to provide evidence of the expenses for which you are claiming and you may also be required to provide documents indicating the nature of the disability of certain dependents. The IRS Form W-10 (Dependent Caregiver Identification and Certification) may also be necessary.
The process is a little more complicated than for some of the other incentive payments provided under the US rescue law. But with Thanksgiving and Christmas approaching and with payments up to $8,000 per claim, it could be worth making some extra cash this holiday season.
Child tax credit payment on the go
Those who qualified for the monthly Child Tax Credit payments, but opted against it, instead preferring a larger amount later, could now receive payment from $1,800 per child on December 15, which will no doubt be a helping hand for many families in the US.
If you manually delete the . has claimed Child Tax Credit payment before the November 15 deadline, you will receive all payments for 2021 by December 15, with this amount increasing to $1,800 per child. Then, in 2022, the remaining half will be spent.
What if I missed the deadline?
If this applies to you, it is necessary to file a tax return in order to receive the benefits next year. The IRS tool is accessible on both computers and mobile devices and is available in both English and Spanish.
Those families who Child Tax Credit payments on a monthly basis should bring the sixth installment of up to $300 per child on December 15. Then, as mentioned above, the remaining half will be paid in a lump sum next year.