American families with two children could receive a payment worth up to $ 8,000 in the New Year.
Parents who have children under 13 and an income of less than $ 125,000 can claim the additional money.
The support is known as the Child and Dependent Tax Credit, which is designed to help working families offset expenses when supporting their children.
Eligible expenses include transportation, housekeepers, babysitters, before and after school programs, as well as day camps and child care.
The money can also be used to care for disabled dependents. We tell you what you need to know.
How much you can get
In 2020 and prior years, the maximum you could claim for two or more children was $ 6,000.
However, this amount was increased in 2021 thanks to the American Rescue Act, but this may surprise many families.
This year, parents are eligible for expense tax credits of up to $ 8,000 for one child and $ 16,000 for multiple children.
For 2021, the maximum percentage of eligible expenses that families can claim has been reduced from 35% to 50%.
This means that applicants can receive credits of up to $ 4,000 in expenses for one child or up to $ 8,000 for two or more.
Who is eligible and how to apply
Many more Americans are eligible for enhanced care credits this year.
This is because those with Adjusted Gross Income (AGI) of $ 125,000 or less can claim the maximum expense rate.
In the past, this threshold was only $ 15,000.
For those with an AGI of $ 125,000 or more, the 50% credit percentage is reduced as income increases.
In addition, it is reduced to 20% for those whose AGI is between $ 183,000 and $ 400,000.
You are not eligible to receive care credits if the AGI exceeds $ 438,000.
Keep in mind that care credits are only available for children under 13.
Unfortunately, the checks are not sent automatically to the homes, so parents must apply to receive the money.
They can be claimed when you file your income tax return next year.
Other money calls
Meanwhile, calls are mounting for another round of stimulus checks to be introduced before Thanksgiving.
A Twitter user said, âHello, President Biden, I am affiliated with SSDI (Social Security Disability Insurance) and just lost my mother.
âThanksgiving won’t be the same without her, but a $ 2,000 stimulus check would be great for Christmas so I can buy Christmas presents for my two daughters and granddaughter. “
Another added: “I can’t afford a Thanksgiving, I need another stimulus check, please Mr. Presidents. [sic]. “
The Senior Citizens League is also pushing for a stimulus check in the hands of Social Security claimants.
This is because child tax credits of up to $ 300 per child were sent to parents on November 15.
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