In 2022, as part of the American Rescue Act, some parents may get up to $8,000 in Child Tax Credit payments. As the IRS begins to distribute the sixth cycle of payments, according to The Sun, families with at least two children under the age of 13 and an adjusted gross income of less than $125,000 may be eligible for financial assistance.
American Rescue Plan Act Of 2021
COVID-19 has had a terrible influence 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 about $2 trillion, making it one of the most expensive in United States history.
According to FOX Baltimore, President Joe Biden signed the American Rescue Plan into law in March and has since distributed hundreds of millions of dollars to the American people. Nearly all Americans received a $1,400 payment quickly after receiving two $1,200 and $600 installments.
Many measures are in place as part of Joe Biden’s American Rescue Plan, and one of the less talked about projects could see Americans with children or dependents get up to $8,000. According to MARCA, the Child and Dependent Care Tax Credit was developed to help those families because of the added costs of being a parent or a caregiver.
The Child And Dependent Care Tax Credit
The Child and Dependent Care Tax Credit stimulus check is available to families earning up to $125,000 per year but not beyond that amount. Care expenses for an official dependent child under the age of 13 may be reimbursed up to $8,000 per year. Fifty percent of qualifying expenses up to $16,000 are reimbursed for the care of two children under 13 or official dependents. In addition, families earning between $125,000 and $183,000 a year can receive up to 20 percent.
Tax returns from the prior year must have been filed to claim CTC in 2022. According to The Sun, IRS has mailed Letter 6419 to those who received a CTC, and to ensure that parents receive their full CTC entitlement, the letter describes any leftover credit they may have and provides instructions on how to claim it. Those who qualify will not be taxed on the 2021 advance CTC payments because they are not considered income.
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