The combo of tax credits and stimulus checks will be quite helpful for American citizens. Stimulus payments along with the tax credits for children are combined with the credits for income tax to form an aggregate value of $3,450 for citizens earning under 60%, on average. The director of tax policy for the Federal Government, Steve Wamhoff, stated that the people who deserve the money will get what they deserve.
More About These Stimulus Checks:
The tax credits and stimulus checks were added into the Rescue Plan after Joe Biden authorized it. Payments of $1,400 were made to the adults while certain other packages were added to take care of the rent, unemployed citizens, and other provisions, the sum being $1.9 trillion.
A deeper study was made, which showed that the lower 20% of the people who paid their taxes would benefit the most from these checks. The stimulus checks were phased out at income levels $75,000 till $80,000, where one person would receive $1,400. $150,000-$160,000 were phased out for married citizens who filed their returns jointly. The heads of households would receive the stimulus checks if their incomes lied somewhere between $112,500 and $120,000.
The legislation passed in March aided the people with stimulus checks, ranging from $9,820 to $4,220 (income levels) by maximizing the tax credits earned by them. The minimum limit for qualification is 19 years of age while the maximum limit has been removed entirely. The child care credit has also been expanded. People will be eligible to claim 50% of their childcare expenses(till $8,000). In simpler terms, one child would be eligible for $4,000 credit. The credit will phase out from $125,000 (AGI) to $438,000.