The stimulus check money that is being sent out will be a part of the child and dependent tax credit, which in itself is a part of the American Rescue Plan. Parents who have their annual income below $125,000 and who also have at least a couple of children under the age of 13 could be the prime contenders for receiving the check. The money will definitely provide a massive helping hand to families in order to provide support and care for their kids by relieving some of the other costs that could potentially burden the family financially.
Stimulus check Worth $8000 Coming In For Families
The last two years have seen the maximum amount a family receives for two children set at $6,000. However, since then, the amount has been increased in the current year, thanks to the American Rescue act, but it could still be quite a big surprise to most of the families that will be receiving the payment. The current year will see parents being eligible to claim tax credits of expenses which could go up to $8000 for a single child and around $16,000 for multiple kids.
By this year, the maximum percentage of qualifying expenses families can claim has gone up to 50% from the previous range of 35%. This implies that claimants will be able to receive stimulus check credits of around $4,000 in expenses for one child or around $8,000 for two or more.
A large section of the population will be eligible for the stimulus check care credits this year. This is because those who have an annual income of around $125,000, or less would end up claiming the maximum rate of expense. Previously, the threshold was simply set at $15,000. For those with an AGI of around $125,000 or more this time around, the 50% credit percentage is going to reduce with the rise in income.