SOME American families may be able to sign up for new stimulus payments worth up to $8,000 today.
Families with children who were receiving Child Tax Credit checks throughout 2021 could get more cash to help offset child care costs.
To be eligible for the $8,000 payment, parents must have an adjusted gross income (AGI) of less than $125,000 and at least two children who are 13 or younger.
The extra checks, known as the child and dependent tax credit, are meant to cover care expenses.
“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 work, look for work, or attend school,” according to the IRS.
The payments can be used to cover expenses such as babysitting, transportation, housekeepers, day camps, daycare, and after-school programs.
If you believe your household is eligible, you must apply using Form 2441.
More information about who is eligible and how to apply can be found on the agency’s website.
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According to the IRS, the American Rescue Plan Act, which went into effect in March, made the child and dependent tax credit significantly more generous.
That means up to $4,000 for one qualifying child or dependent and up to $8,000 for two qualifying children or dependents.
“This means that more taxpayers will be eligible for the credit for the first time and that, for many taxpayers, the amount of the credit will be larger than in prior years,” according to the agency.
Meanwhile, the expanded Child Tax Credit program is set to expire with 2021 unless Congress can come to a quick agreement on extending it.
The program expanded the Child Tax Credit to $3,600 for each child under the age of six and $3,000 for children ages six to 17 for qualifying families.
The expanded program also made it so half of those payments went out in the form of monthly checks from July through December.
The rest of the Child Tax Credit payments can be collected when eligible families file their 2021 tax returns.
