COVID-19 has had a devastating impact on the economy and health of the United States. The American Rescue Plan Act of 2021 is intended to aid in the country’s recovery from the disaster. Based on current estimates, the cost of this economic rescue package will be nearly $2 trillion, making it one of the most expensive in United States history.
Child and Dependent Care Tax Credit (CDTC)
As reported by FOX Baltimore, hundreds of millions of dollars have been distributed directly to the American people through the American Rescue Plan, which was signed into law by President Joe Biden in March. The majority of Americans received a $1,400 payment almost immediately after receiving two $1,200 and $600.
There are several measures to achieve this goal as part of Joe Biden’s American Rescue Plan. One of the less-talked-about initiatives could result in Americans with children or dependents receiving up to $8,000. A program designed to assist families who face additional expenses as a result of their role as parents or caregivers, according to AS, is the Child and Dependent Care Tax Credit (CDTC).
Eligible Recipients For The Program
The Child and Dependent Care Credit is available when taxpayers pay for child care expenses out of their pocket. Participants in the credit program include individuals and their spouses who are providing care for an eligible child or a disabled dependent while they are employed or looking for employment are eligible for the credit. In addition, the percentage of qualified expenses that qualify for the tax credit varies depending on one’s income level, as does the total dollar amount of eligible costs, as per Investopedia.
Families earning less than $125,000 per year can receive a stimulus check through the Child and Dependent Care Tax Credit. Expenses for the care of an official dependent child under the age of 13 may total up to $8,000 in total. In addition, for the care of two children under the age of 13 or official dependents, up to $16,000 in qualifying expenses is reimbursed, up to a maximum of 50 percent. Families earning between 125,000 and 183,000 dollars per year, on the other hand, can claim up to 20 percent of their income.
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