Families eligible for the program can receive up to $8000.
Apart from stimulus checks, the federal government has launched a wide range of programs to help the recovery and reliance of the United States economy.
There is a less-talked-about initiative called Child and Dependent Care, which reimburses parents and carers for expenses incurred while parenting or caring for a child.
You will receive a refund from the Internal Revenue Service based on your income and a percentage of your expenses if you care for children or other dependents.
Child and Dependent Care Credit Application Process
In accordance with IRS guidelines, “the credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.”
The program is available to families earning below $125,000.
To claim the credit, you will need a valid taxpayer identification number (TIN).
When submitting your application, you must list any children or dependents you are currently caring for. Other information required is as follows:
- (if any) The type and duration of the disability
- People and organizations who provide care (schools, child care centers, hospitals) for dependents are included.
- Form W-10 for the dependent care provider’s identification and certification
You can credit up to $4,000 towards a
child and dependent care for one qualifying dependent and $8,000 towards two or more qualifying dependents.
The payment will now be granted annually according to Marca:
- 50 percent of qualifying expenses (up to $8,000) for the care of a child under 13 or an official dependent
- 50 percent of qualifying expenses (up to $16,000) for the care of two children under 13 or official dependents
If the circumstances and requirements warrant it, it should be known that the payment can be refunded.