Some American families qualify to receive a stimulus payment.
As reported on The Sun, the initiative is called the child and dependent care tax credit. It aims to help working families pay expenses that they’ll need to care for their loved ones. The IRS said,
“The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.”
Parents that have children 13 and under and make less than an adjusted gross income of $125,000 or less could receive a payment up to $8,000 in the new year. The article points out qualifying expenses include babysitters, transportation, housekeepers, day camps/daycare, and before/after school programs. The money can also be used to care for a dependent with a disability.
Who qualifies: Families with an income of less than 125,000 dollars annually can claim the following:
- 50% of qualifying expenses (up to $8,000) for the care of a child under 13 or an official dependent
- 50% of qualifying expenses (up to $16,000) for the care of two children under 13 or official dependents
Families earning between $125,000 and $183,000 annually, qualify for this stimulus check, but they would only be able to claim up to 20 percent. The article points out the money is also potentially refundable, meaning you might not have to owe taxes to claim the credit.
Last year, for example, the most you could claim for two or more children was $6,000. The amount was boosted this year due to the American Rescue Act. The article also points out that parents can claim tax credits of expenses up to $8,000 for one child and $16,000 for multiple children. For 2021, “the maximum percentage of qualifying expenses families can claim has been increased to 50% from 35%.” The gross income was $15,000 or less in the past, but it’s been increased to $125,000.
The checks won’t automatically be sent out, and you would have to apply for it. You’d be able to claim the funds when you file your tax return next year.
As far as another stimulus check for the rest of America, we might be SOL until the federal government steps back in. As of now, the federal government placed the responsibility in the hands of each state. Some states are offering different options of relief.