Stimulus Check for Parents, Caregivers to Arrive After Thanksgiving

Stimulus Check for Parents, Caregivers to Arrive After Thanksgiving

Americans With Additional Parenting and Caregiving Costs Will Receive Another Stimulus Check.

Many American families are still asking for financial assistance from the federal government. This is why it is not surprising that the push for the fourth stimulus check remains apparent.

But, officials have yet to make definitive comments about the matter. Accordingly, analysts believe that it is no longer likely that the IRS will disburse new stimulus payments of the same kind.

Despite this, there are other forms of relief checks available for some Americans. These include the Child and Dependent Care Tax Credit, which is part of the American Rescue Plan.

Marca recently reported that eligible individuals will receive the check after Thanksgiving. The same post also included some other important details about the relief payment.

About the Child and Dependent Care Tax Credit

The Child and Dependent Care Tax Credit is only for Americans with additional costs related to parenting and caregiving. This means only those who have qualifying dependents will be eligible to receive the stimulus check.

The Internal Revenue Service (IRS) stated that this scheme is a tax credit, aiming to help individuals pay for the care of children and other dependents.

The check’s amount will vary depending on the adjusted gross income (AGI) of the family, as well as the percentage of expenses that go to the care of the qualifying dependents, enabling the eligible American to go to work, attend school, or even look for work.

Nevertheless, eligible individuals may receive up to $8,000 for the care of a child under 13 years old or one official dependent. The amount increases up to over AU$22,000 if there are two or more qualifying dependents.

Qualifications to receive the stimulus check

There are also other qualifications that individuals should meet before becoming eligible for the Child and Dependent Care Tax Credit. This involves the family’s adjusted gross income (AGI), as surpassing specific thresholds will cause the amount to diminish fully.

The Sun said that Americans with official dependents having an AGI of AU$173,500 or less may claim the maximum amount of the check. If earning more than that, the credit percentage will reduce by 50 percent.

Another 20 percent will be debited to the amount of the stimulus check if the AGI is between AU$254,000 and AU$555,400. Accordingly, Americans with more than AU$608,000 of income are no longer eligible to receive the care tax credit.

Not an automatic relief payment

Reports also noted that the Child and Dependent Care Tax Credit is not an automatic relief payment. Eligible individuals should actively claim the check after completing the requirements.

These include accomplishing the IRS’ Form 2441 to outline the care expenses. It is also reportedly likely that proof of the listed costs is necessary.

Provision of records, outlining the nature of the disability of some official dependents, is possibly needed, as well.

Moreover, the IRS’s Form W-10 or the Dependent Care Provider’s Identification and Certification is also likely necessary for the stimulus check.

Stay tuned to HonkNews for more updates.