Americans who want financial assistance can look forward to one program and one proposal happening this year. First is the Child and Dependent Care Credit, which can provide up to $16,000 payments to eligible families. Second is the online petition for a fourth stimulus check, which recently reached 3 million signatures!
The recent surge of the COVID-19 Omicron variant is causing major economic inflation in the market. Families are reaching a point where financial assistance is critical to them. Fortunately, there are available programs that can credit a few hundred dollars to eligible recipients.
Child and Dependent Care Credit: Up to $16,000 Payments
According to Cnet, parents can look forward to major tax refunds for child care expenses. The Child and Dependent Care Credit will pay back up to $8,000 for one dependent and $16,000 for two or more. Note, however, that these families must provide proof of payments to claim the money.
Simply put, parents who paid for daycare, babysitters, school bills and other child-care related expenses can apply for a refund through the program. Be warned that the amount receivable is dependent on a myriad of eligibility requirements.
Cnet said the IRS rules are relatively relaxed when categorizing care providers. However, parents must provide a detailed account of the expenses, which includes receipts and acknowledgment forms. Applicants also have to report the "taxpayer identification number" from the care provider where the services were bought.
Child and Dependent Care Credit max out at $8,000 and $16,000. However, depending on the applicant's adjusted gross income (AGI), the amount might decrease.
The credit rate is reduced by 1 percent for every $2,000 earned over $125,000 AGI. The payment becomes zero for families who earn $438,000 or more.
To apply for the program, parents have to complete Form 2441 titled "Child and Dependent Care Expenses." Then this document will be attached to Form 1040 "US Individual Income Tax Return."
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Fourth Stimulus Check Update: $2,000 Monthly Payments
Another program to look forward to is the fourth stimulus online petition made by Stephanie Bonin. This calls for the U.S. House of Representatives to release $2,000 monthly payments for the duration of the pandemic.
Bonin emphasized that Americans are facing true unemployment rates and large debts thanks to the pandemic. Unfortunately, since the pandemic is not ending any time soon, Americans need government assistance which they can rely on, like recurring checks.
Bonin said, "I'm calling on Congress to support families with a $2,000 payment for adults and a $1,000 payment for kids immediately, and continuing regular checks for the duration of the crisis."
A lot of people supported her claim by signing her petition. At the time of writing, it officially reached 3,006,440 signatures. The online petition updated to a new goal of 4.5 million signatures and is set to be become "one of the top signed petition in Change.org." Hopefully, this will be enough to convince lawmakers for a fourth stimulus check.
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