Fourth Stimulus Check? How to Get Up to $8000 With Child and Dependent Care Credit

If you're still searching for the fourth stimulus check, then try applying for the Child and Dependent Care Credit. This program provides up to $8000 payments to eligible families.

Aside from stimulus checks, the federal government has launched many programs to aid U.S. economic reliance and recovery. One of the lesser-talked initiatives is Child and Dependent Care, which pays back costs incurred related to parenting or caregiving.

To quickly summarize, if you are currently caring for children or any other dependents, the Internal Revenue Service (IRS) will pay you back based on your income and percentage of expenses.

How to Apply for Child and Dependent Care Credit

According to IRS, "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." Families with an income of less than $125,000 can apply for the program.

You must have a valid taxpayer identification number (TIN) to claim the credit. On application, you must declare the child or dependent you are currently caring for. You also need to provide this necessary information:

• The nature and length of disability (if any)
• All persons and organizations that provide care for the dependent (schools, child care, hospitals)
• Form W-10 for the dependent care provider's identification and certification

Child and Dependent Care payments can credit up to $4,000 for one qualifying dependant and $8,000 to two or more qualifying dependants. According to Marca, the payment was expanded to credit annually:

• 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

The payment is potentially refundable, depending on the circumstances and other requirements.

How to Claim $8000 Child and Dependent Care Credit

Marca emphasized that the Child and Dependent Care Credit is not an automatic payment. Unlike the stimulus payments, you have to actively apply and claim the money.

To do this, first complete the IRS Form 2441, outlining your child or dependent's ongoing expenses. You also have to attach your federal income tax return to this document.

Next, you must provide proof of expenses. This might include some receipts and records on the costs you paid for your dependent. As previously mentioned, you need to attach Form W-10 to this document.

Lastly, you might have to submit the said documents to the IRS office. Qualified personnel will validate your documents, so the process could take a few days.

The Child and Dependent Care Credit admittedly has a more complicated process than other stimulus check programs. However, keep in mind it gives out one of the most generous benefits for eligible families. If you get lucky enough, you might claim the credit in time for the holiday season.