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I’m a tax professional and here’s how parents can claim $8,000 from the IRS next year

MANY parents will be able to claim up to $8,000 from the IRS next year — and one expert has shared how you can do it.

Cash available according to Child and dependent care tax credit, which aims to help working families offset the costs of providing for a child.

A provision in the American Rescue Act allows parents to claim up to $8,000 in credit

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A provision in the American Rescue Act allows parents to claim up to $8,000 in credit
Usually, both parents need to work to qualify for credit, according to experts

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Usually, both parents need to work to qualify for credit, according to experts

Previously, families could only claim $6,000 for two or more children.

But thanks America’s Rescue Act, signed into law by the President Joe Biden In March, the tax credits were extended.

Now in 2021, families can claim credits for expenses up to $8,000 for one child and $16,000 for multiple children.

The way it works is that families with children under 13 can claim up to 50% of eligible costs.

So to get the full $8,000 tax credit, you’ll need to spend $16,000 on qualifying expenses for two kids.

Those with one child need to spend $8,000 to get $4,000 back.

Tax specialist and TikToker “AhadtheCPA” explained what costs, in particular, are associated with childcare credits, including parents paying the babysitter.

“Private school tutoring and tutoring costs do not qualify, but after-school expenses may be eligible,” he said.

“Additionally, expenses such as childcare or summer camp expenses may also qualify for this credit.”

The expert also added that childcare and summer camp expenses may also qualify for a credit.

According to TikToker, as far as eligibility is concerned, both parents must work to receive credit.

That said, many more people will be eligible for the maximum childcare credits this year – though Internal Revenue Service (IRS) How many have yet to be confirmed.

The IRS did not immediately respond to The Sun’s request for comment on this.

According to the IRS, people with adjusted gross income (AGI) of $125,000 or less can claim a maximum expense ratio of 50%.

Previously, that threshold was just $15,000.

It will then drop to 20% for those with an AGI between $183,000 and $400,000.

You are not eligible for care credits if the AGI exceeds $438,000.

Additionally, while the credits are primarily intended for parents with children under the age of 13, some may require dependents who are unable to care for themselves.

Credits may be claimed on your tax return next year and not sent monthly as with child tax credit payments.

The IRS says they’re “reimbursable,” meaning you can get a refund if you don’t owe taxes, as long as you meet other requirements.

Talk about child tax credits, payments up to $1,800 will be sent on Wednesday.

We break down many situations about How much can your family get.

We explain if any pay the child tax credit next year.

Plus, see all cities and states provide stimulus checks and other payments before Christmas.

New ‘Stimulus test’ is on your way, make sure you’re applying for the child tax credit

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https://www.the-sun.com/money/4263232/child-dependent-care-credit-how-claim/ I’m a tax professional and here’s how parents can claim $8,000 from the IRS next year

DevanCole

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