Currently, there is still a certain section of the population that is still waiting for the $1,400 stimulus check which came after the bill was passed three months back. As far as reports go, there have been talks of yet another round of payments to facilitate the growing economy of the country. Now, some of the money, while available for the latest stimulus payment, doesn’t really come all at once as a check. The money comes in pieces and tax credits– and for those who qualify, they could get $8,000.
The Tax Credit Stimulus Check Would Get You Applied For $8,000
The tax credit as a part of your stimulus check will definitely negate what you have been owing to the IRS the current year- in case you have payments left related to child care. If you have been the caregiver of a dependent or a child, you can easily claim $8000 if you qualify. If you are a caregiver of more than one child or another dependent- you might be able to claim around $16,000 in expenses. Interestingly, the tax credit is also refundable- going up to 50%.
The way this stimulus check works is pretty simple. You would be easily claiming it when you are about to file your tax for 2021. In the event you do manage to spend around $16,000 taking care of your dependents, then you would owe the IRS around $4,000. This is where your tax credit eliminates the debt you have accrued- after which you would be getting a hefty payment for another $4000.
There are a lot of people who would be qualifying for this tax credit stimulus check. The AGI (adjusted gross income) at which the percentage for credit was previously reduced has been raised substantially from a sum from $15,000 to $125,000.