THERE are several ways Americans can claim stimulus or Child Tax Credit payments between $500 and $8,000 when filing tax returns.
As tax season approaches, many are worried that a year of stimulus checks and new credits will making filing a major hassle.
That’s why it’s so important to be aware of tax credits that may be available to you and your family.
Child Tax Credit
President Joe Biden‘s Covid relief package, signed into law in March, expanded the Child Tax Credit from $2,000 to $3,600 for children under six and $3,000 for children ages six to 17.
For most eligible families, half of that credit went out in the form of monthly checks from July to December.
The rest will become available when families file their 2021 tax returns.
Dependents who are 18 or over and those ages 19 to 24 who are enrolled in college may also qualify for a $500 credit.
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Recovery Rebate Credit
The recovery rebate credit is for anyone who did not receive the correct amount from the third round of stimulus payments that went out earlier this year.
If you did not receive the full payment or believe you did not receive the correct amount, make sure to apply for this credit when filling out 2021 taxes.
Read our stimulus checks live blog for the latest updates on Covid-19 relief…
Individual tax filers who make up to $75,000 a year were eligible for the full $1,400 checks as were married couples filing jointly who make up to $150,000.
Lifetime Learning Credit
A lifetime learning credit can be claimed for anyone in your household who is paying for higher education.
The credit can be claimed for yourself, a spouse, or a dependent.
Income requirements have not been announced yet, but should be set in January 2022.
Saver’s Credit
People who are contributing to a retirement fund may be able to apply for the saver’s credit.
This credit is available to people who have either an IRA or a 401k and made contributions throughout the year.
American Opportunity Credit
The American opportunity credit is available for first-time college students during their first year of school.
The income cutoff to be eligible in 2020 was $80,000 to receive to full credit and $90,000 to receive a partial credit.
Income limits for 2021 will be released next month
Child and Dependent Care Credit
The child and dependent care credit is worth up to $8,000 this year.
In 2020 and previous years, the maximum you could claim for two or more children was $6,000.
However, this amount has been boosted in 2021 thanks to the American Rescue Act.
Keep in mind the care credits are only available for children under the age of 13.
Medical/Dental Expenses
If you incurred medical or dental expenses that cost more than 7.5 percent of your adjusted gross income (AGI) for the year, you may be able to deduct them.
Expenses could include things like doctor visit fees, hospital visits, nursing home care, acupuncture, substance abuse treatment, and things like glasses, wheelchairs, or other medical equipment.
