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Understanding Child Tax Credit: A Guide for Working Parents Balancing Home and Career

Reminder: Claim Child and Dependent Care Credit by Deadline for Tax Year 2020

Don’t Miss Out! Deadline Approaching for Child and Dependent Care Credit Claim

Taxpayers who are eligible for the Child and Dependent Care Credit (CDC Credit) are reminded of the approaching deadline to claim the credit for the tax year 2020. This credit is designed to assist individuals, including single or head of household filers and married couples filing jointly who work outside the home and incur expenses for the care of qualifying persons. Qualifying persons can include children under 13, disabled spouses, or disabled individuals who are dependents. Eligible expenses for the credit cover household services and care of the qualifying person while the taxpayer works or seeks employment.

The CDC Credit calculation caps at $3,000 for one qualifying person and $6,000 for two or more qualifying persons. The percentage of the credit decreases as adjusted gross income (AGI) increases ranging from 35% for AGIs of $15,000 or lower to 20% for AGIs of $43,000 and above. Additionally, there’s an Earned Income Test requiring the taxpayer and their spouse (if applicable) to have earned income during the year with exceptions for certain circumstances. Married couples typically need to file a joint return to claim this credit.

READ ALSO: Credit Card Benefits And Autopsy Discount Rules: Potential Ineligibility Explained!

IRS Urges Prompt Action: Claim Your COVID-era Rebate Credit Before May 17, 2024 Deadline

Meanwhile, the Internal Revenue Service (IRS) has issued a reminder regarding the COVID-era Recovery Rebate Credit for the tax year 2020. Taxpayers who haven’t yet filed a tax return for 2020 have until May 17, 2024, to do so and claim any entitled payments. To assist taxpayers in tracking their refunds the IRS has updated its “Where’s My Refund” tool with enhancements for this filing season including plain language messages about refund status, seamless access on mobile devices and notifications for additional information requirements. Taxpayers can check their refund status using their Social Security or individual taxpayer ID number, filing status and the exact refund amount from their return, with updates provided once a day, overnight.

READ ALSO: $48 Trillion Boost Public Debt – Bidenomics Projected: A Call For Sustainable Economic Policies!

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