Cleveland

Child tax credit: Some may be able to get up to $8,000 in additional benefits – Cleveland, Ohio

Cleveland, Ohio 2021-06-07 10:56:54 –

(WJW) – Some people are waiting for a stimulus check, but there are other ways to qualify for more. Stimulation funds.

Is Credits for child and dependent care Is part of the $ 1.9 trillion US Rescue Planning Act signed by President Joe Biden in March.

The amount of expenses covered by the Child Deduction and Deduction for Dependents will increase under this law and will be refunded under the new law, but only in 2021.

This year, qualified individuals can charge up to $ 8,000 for one qualified child, or up to $ 16,000 for two or more qualified dependents. Both amounts are more than double the previous limit.

This year, the maximum credit rate for covered expenses will also rise to 50%. This means that the maximum credit that someone can charge is $ 4,000 for one dependent, or $ 8,000 for two or more dependents.

As in the past, the higher the taxpayer’s income, the lower the creditworthiness. However, as the rate-decreasing adjusted total income has risen from $ 15,000 to $ 125,000, more people will be subject to the new cap.

Credits for those earning between $ 183,000 and $ 400,000 will peak at 20%, at which point they will be phased out.

Another major change in 2021: Credits are still 100% refundable.

“This means that qualified families can receive it, even if they are not obliged to pay the federal income tax,” IRS explained.

Child tax credit: Some may be able to get up to $8,000 in additional benefits Source link Child tax credit: Some may be able to get up to $8,000 in additional benefits

Back to top button