Child Tax Credit Update: The Surprise Stimulus Payment In December


The we the federal government has introduced a series of stimulus programs try to bring the country’s economy back to a healthy level, with Joe Biden’s American bailout including several measures to achieve this, such as one that could see Americans with children or dependents receiving a stimulus check worth up to $ 8,000 before the end of 2021.

The Child care and dependent care tax credit was put in place to help those with additional parenting or caregiving costs.

Who is eligible for a payment of the tax credit for child care and dependents?

Whether you are eligible for Child care and dependent care tax credit payment depends on your income and a percentage of the expenses you incur to care for eligible people when you travel to work, look for work or go to school. What is important to note is that taxpayers with adjusted gross income greater than $ 438,000 will not be able to benefit from this credit, even if they could before.

“The Child care and dependent care tax credit is a tax credit that can help you pay for eligible child care expenses and other dependents (eligible people), ”the IRS said of the plan. “The credit is calculated based on your income and a percentage of the expenses you incur to support qualified people to enable you to go to work, look for work or go to school.

You can claim up to $ 8,000 per child or dependent with the Child Care and Dependents Tax Credit

With regard to those eligible for this Childcare and Dependent Care Tax Credit Stimulus Check, families with an annual income of less than $ 125,000 can apply for the following:

  • 50% of eligible expenses (up to $ 8,000) for the care of a child under 13 or an official dependent
  • 50% of eligible expenses (up to $ 16,000) for the care of two children under 13 or official dependents

For families earning between $ 125,000 and $ 183,000 a year, they are also eligible for this stimulus check, but they would only be able to claim 20%. This could still be a significant sum, however.

This money is also potentially refundable, which means you may not have to pay tax to claim the credit.

How to Claim the Child Care and Dependents Tax Credit Stimulus Check

It is very important to note that this is not an automatic payment. You must actively claim this one.

This can be done by completing the IRS Form 2441, describing your Childcare and dependents costs. You then also attach this form when you file your federal income tax return.

You may also be required to provide proof of the expenses you are claiming and you may also be required to provide documents describing the nature of the disability of certain dependents. The IRS Form W-10 (Identification and Certification of Dependent Caregiver) might also be necessary.

The process is a bit more complicated than for some of the other stimulus payments that have been provided as part of the American Rescue Act. But, with Christmas approaching and with payouts of up to $ 8,000 per claim, it might be worth pursuing for some extra cash during this holiday period.

The other payment of the Child Tax Credit in progress

Those who were eligible to receive the monthly payment Child tax credit payments, but opted out, preferring instead a larger sum later, could now receive a payment of $ 1,800 per child on December 15th, which will no doubt be a helping hand for many families across the United States.

If you manually claimed the Child tax credit payment by the November 15 deadline, you will receive all 2021 payments by December 15, with that amount totaling $ 1,800 per child. Then, in 2022, the remaining half will be issued.

What if I miss the deadline?

If this applies to you, it is necessary to file an income tax return to receive the payments next year. The IRS The tool is accessible on both computers and mobile devices, and it is available in English and Spanish.

Families who received the Child tax credit monthly payments are expected to see the sixth installment of up to $ 300 per child land on Dec. 15. Then, as stated above, the remaining half will be paid as a lump sum next year.

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