10 Potential Highs And Lows Of Biden’s Stimulus Package

4. Childcare Costs

We all know that childcare costs are through the roof. That’s why President Biden plans to expand the childcare tax credit for one year. Under his plan, families would get a refundable tax credit for up to 50% of their childcare costs for children under the age of 13. This would not exceed $4,000 for one child or $8,000 for two or more children.

As of right now, families are eligible for a 20% to 35% credit for up to $3,000 for one child or $6,000 for two or more in child-related expenses.

Biden’s plan would affect families making less than $125,000 per year, and those with incomes between $125,000 and $400,000 would receive a partial credit instead.

But there’s more, as there are plans to add an additional $15 billion into the Child Care and Development Block Grant program. This would help those who have been furloughed or laid off during the pandemic, in addition to the $10 billion the program received back in December.

5. Child Tax Credit

As of right now, the child tax credit is worth $2,000 per child aged 16 or younger. For singles with an income above $200,000 or married with an income above $400,000, the credit starts to disappear. Meanwhile, for low-income taxpayers, this credit is refundable up to $1,400 per qualifying child. If it’s worth more than your income tax liability, you’ll be refunded the difference.

Here’s what President Biden plans to do. He wants a one-year expansion of the credit, making it fully refundable and increasing it to $3,000 per child and $3,600 for children under the age of 6. Furthermore, he wants to allow the credit for 17-year-old children too.