In 2022, many American families may be eligible for a tax credit of up to $8,000.
They can claim the credit if they have children under the age of 13 and earn less than $125,000.
It’s known as the child and dependent tax credit, and it assists families with kid-related expenditures as they work to support them.
Transportation, housekeeping, babysitting, before-and-after-school programs, and childcare programs such as daycare or day camp are all expenses that can be deducted.
The credit also applies to disabled dependents.
How Much I Can Claim & How Do I Get The Tax Credit?
Prior to 2021, a claim for two or more children might be valued up to $6,000.
The American Rescue Act boosted the amount to $8,000 for a single kid and $16,000 for a family with several children.
The percentage of qualified costs has been increased from 35% to 50%.
One kid may now claim $4,000 in expenditures, while two children can claim $8,000 in expenses.
This year, even more people are eligible for the credit.
The cash is now available to anybody earning $125,000 or less, up from $15,000 previously.
Parents having an income of more than $125,000 will see their 50% credit percentage decrease as their income rises.
If your AGI is between $183,000 and $400,000.00, it’s decreased to 20%.
You will no longer be eligible for the credits if your income exceeds $438,000 per year.
Only children under the age of 13 are eligible for these credits.
You may be able to claim this money when you file your taxes.
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