Apply for the Child Are Tax Credit If You Need a Fourth Stimulus Check

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The US federal government has initiated a variety of stimulus measures to help the country’s economy recover from the disastrous effects of the coronavirus outbreak.

Joe Biden’s American Rescue Plan contains numerous measures aimed at doing this, and one of the less-publicized plans may see Americans with children or dependents get an 8,000-dollar stimulus cheque.

The Child and Dependent Care Tax Credit is a program meant to help those who have extra expenditures associated with parenting or caregiving.

According to the IRS, “the Child and Dependent Care Tax Credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualified individuals).”

The credit is based on your income and a proportion of the expenditures you pay to care for qualified people so you may go to work, seek for job, or go to school.

Read More: California Stimulus Check: Here Are the Zip Codes That Are Experimenting Delays

Families with an annual income of less than 125,000 dollars are eligible for the Child and Dependent Care Tax Credit stimulus payment.

  • 50% (approximately of $8,000) of eligible expenditures for the care of a child under the age of 13 or an official dependent.
  • 50% of eligible costs (approximately of $16,000) for two kids under the age of 13 or official dependents.

Families earning between 125,000 and 183,000 dollars per year may also be eligible for this stimulus payment, but they will only be able to claim up to 20%. However, that sum might still be substantial.

This money may also be refundable, which means you may not have to owe taxes in order to collect the credit.

Those who were eligible for monthly Kid Tax Credit payments but chose not to receive them in favor of a larger sum later might now get a payout of $1,800 per child on December 15, which will undoubtedly aid many families across the United States.

If you physically claimed the Kid Tax Credit by the November 15 deadline, you will get all of the payments for 2021 on December 15, totaling $1,800 per child. The remaining half will be released in 2022.

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