The American Rescue Plan, signed into law by President Joe Biden in March, has sent hundreds of millions of dollars directly to the American people, according to FOX Baltimore. Following two payments of $1,200 and $600, most Americans received a $1,400 payment nearly immediately.
American Rescue Plan Act 2021
COVID-19 has had a devastating impact on the United States’ economy and health, and the American Rescue Plan Act of 2021 is designed to help the country recover. It is estimated that this economic rescue bill will cost nearly $2 trillion, making it one of the most expensive in US history.
As part of Joe Biden’s American Rescue Plan, there are several measures in place to accomplish this goal, and one of the less talked about initiatives could see Americans with children or dependents receive up to $8,000. According to MARCA, the Child and Dependent Care Tax Credit is a program created to assist families who face additional expenses due to being parents or caretakers.
The Child and Dependent Care Credit
According to Investopedia, the Child and Dependent Care Credit is available when a taxpayer pays out-of-pocket for child care. Individuals and their spouses who are caring for a qualifying child or a disabled dependent while they are working or looking for work are eligible for the credit. The percentage of qualified expenses that qualify for the tax credit varies, and the total dollar amount of eligible costs is based on income level.
Families making less than $125,000 a year are eligible for the Child and Dependent Care Tax Credit stimulus check. Up to $8,000 in expenses for the care of an official dependent child under the age of 13. And for the care of two children under the age of 13 or official dependents, 50 percent of qualifying expenses, up to $16,000, are reimbursed. At the same time, families earning between 125,000 and 183,000 dollars a year can claim up to 20 percent.
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