An American family with two kids could receive up to $8,000 as stimulus payment in 2022. In order to be eligible for the extra cash, the parents have kids under the age of 13 and an income of less than $125,000. The program is called the child and dependent tax credit. The objective of the program is to provide support to working families.
According to reports, the qualifying expenses include transportation, housekeepers, babysitters, before and after school programs, day camps and daycare.
Before 2020, the maximum a family could claim for their two or more children was only $6,000.
The American Rescue Act helped to increase the amount in 2021.
The parents are eligible to claim tax credits of expenses of up to $8,000 for one child and $16,000 for multiple kids this year.
With the threshold of adjusted gross income adjusted this year, many American families could avail of this program.
The new AGI is $125,000 when compared with the figure of just $15,000 earlier.
If a family’s AGI is $125,000 or more, the 50% credit percentage is reduced. It will be further slashed to 20% for those with an AGI of between $183,000 and $400,000.
However, if your AGI exceeds $438,000, you are ineligible to receive care credits.
The care credits are only available for children under the age of 13.
To get the credit the parents will have to apply because the checks will not be sent automatically to homes.
The credit can be claimed when one files their tax return next year.
Meanwhile, the Senior Citizens League supported the demand to receive a stimulus check into the hands of Social Security claimants.
Considering the level of disruption in the economy following the effects of Covid-19, many people are anxiously waiting for support from the government in the form of stimulus measures.