Some Americans have still not received their third stimulus check worth $1400, ever since the passage of the bill in March. Meanwhile, there are also rumors floating around about another stimulus round. But the last stimulus still has more money on the table left for you to claim. But it will not be a check at the start.
The Hidden Stimulus Check
The stimulus check we are talking about is the credits returned as part of your tax fillings. This particular tax credit can get you as much as $8,000 if you qualify.
This tax credit is for reducing what you have to pay the IRS for 2021. However, it is only applicable for those payments that are incurred while caring for dependents, including children. If you are the care of one dependent or child, the maximum claimable expense value is $8,000. For two such dependents or children, the maximum value rises to $16,000. A maximum of 50% of the tax credit is refundable, as well.
How do you make it work? You claim the amount while filing your tax returns for 2021. Suppose, you have spent $16,000 as caring expenses for the dependents. Now, suppose you have to pay the IRS $4,000. Then the tax credit will get rid of the debt. You will also be paid the remaining amount – another “stimulus” check worth $4,000.
A much larger number of citizens will meet the required criterion for this stimulus check. The maximum AGI after which the percentage of credit sees a reduction has been increased considerably as well. It used to be $12,500. Now it is $15,000.
The other important thing to keep in mind is that the credit is completely refundable. This means that even if you do not have to pay the IRS anything, you can still get paid. Also, this option is only available for this year’s tax returns only.
