Congress recently signed up for an expansion on the CTC Stimulus Check- which is a part of the American Rescue Plan of Joe Biden. This increased write-off will be of use for working families, who are trying to stay afloat in these precarious conditions.
The plan offers employed parents a boost at tax time which would cover up the costs of childcare for those kids who are under the age of 13. Up till now, most families have been able to draw back through a sum of $3,000 which would cover the costs of dependents.
Expansion on The CTC Stimulus Check
However, since the $1.9 trillion American Rescue Plan is responsible for this, it would increase the eligibility cost from $8,000 to a maximum of $16,000 for those who are availing of the CTC stimulus check. It has been rumored that most parents could definitely receive up to around 50% of the expenses in the form of refundable credit for this year.
Needless to say, this will be solely dependent on the income that is generated. This implies that the tax bill might be reduced to a great extent or they could be provided a refund- irrespective of the liability.
Linda Smith, who functions as the Director of the Bipartisan Policy Center’s Early Childhood Initiative, stated that the changes which were made under the American Rescue Plan for the CTC stimulus check will definitely have a huge impact on families and how they go about with their childcare expenses. It is being assumed that the switching of the credit from non-refundable to refundable would definitely reach more Americans simply because many low-income families don’t have access to tax liability.
The write-off on the CTC stimulus check came after the IRS put up a deadline where American families would be able to update their addresses. The IRS had already declared that citizens should update their information before the 30th of August to receive the money.