MOTHERS can begin claiming payments of up to $8,000 later this month to help offset childcare costs.
Childcare credits are intended to help working families offset the costs of financially supporting a child.
Specific expenses that count as eligible expenses include, transportation, housekeepers, babysitting, before and after school programs, as well as day camps and daycare.
Furthermore, they can be used to care for dependents with disabilities.
Thanks to an expansion under the Rescue Act, more Americans will be able to claim caregiving credits this year.
How it works
The new law allows families to claim up to 50% of eligible expenses.
The care credit is only available to children under the age of 13, but there may be an exception for dependents who are unable to care for themselves.
You claim the maximum expense as long as your adjusted gross income (AGI) is $125,000 or less.
Once that threshold is over that number, the credit percentage begins to gradually decrease from 50%.
Specifically, families with more than one child spending $16,000 on qualifying expenses will be able to claim up to $8,000 in care credits.
Claimants with one child can receive credits for up to $4,000 in expenses.
How to request
Those who qualify for care credits can claim them as a one-time payment – unlike child tax credits – deposited in monthly installments.
Care credits can be claimed on Tax This year.
The IRS typically begins accepting tax returns at the end of January, but it has yet to release a date.
Tax expert Ahad Ali recently shared How can families get care credits and he notes that both parents need to work to qualify.
In addition, eligible families failed to claim their $1,800 child tax credit payment in 2021, could get the full $3,600 on their tax returns this year.
We explain if any pay the child tax credit in 2022.
Here are three reasons why you May receive fourth federal stimulus payment in 2022.
Also, find out if you still have owe a stimulus check.
https://www.the-sun.com/money/4414545/child-dependent-care-credit-payment-january/ Americans can start claiming up to $8,000 worth of IRS payments this month