Every now and then, we all need some form of financial support. Luckily, help is not always very far away. Financial assistance for the American people goes as far back as 1965. In 1965, President Lyndon Johnson signed into law the Higher Education Act. This too was not even the beginning.
So, which financial benefits are available for you? for this episode, we would be taking a look at common financial assistance like the following.
- Child and Dependent Care Credit
- American Opportunity Tax Credit (AOTC)
- Child Tax Credit.
We will also take a quick look at some state-based financial benefits. Here, we will cover benefits offered in Arkansas, Arizona, Alaska, Alabama, Connecticut, Colorado, and assistance in Puerto Rico, U.S. Virgin Islands, and Guam.
Child and Dependent Care Credit
If you have a dependent below the age of 13, or a person, either your dependent or spouse, physically or mentally incapable of self-care and have lived with you for more than a year and a half, then he or she might be eligible for this credit. The child and dependent care credit reduce your tax. The American Rescue Act made it possible for families to claim $8,000 for one child and $16,000 for multiple kids. We recommend you check out your eligibility status here.
American Opportunity Tax Credit (AOTC)
The AOTC helps your cater for your educational expenses within the first 4 years of your higher education. Though the process of accurately applying for this assistance is a bit lengthy, the result is always worth the wait. At maximum, one can get up to $2,500 annually. Check more about how to apply for this benefit here.
Child Tax Credit
The Child Tax Credit program can help you keep up to $1000 from the total amount of tax owed. This amount goes for each child you have that is below the age of 17. Though no application is required for this benefit, we recommend you check out the procedures you must follow.
Unemployment Insurance
Arkansas, Arizona, Alaska, Alabama, Connecticut, and Colorado all offer unemployment insurance. Though the requirements are slightly different for each state, the goal remains the same – providing benefits to eligible workers who are unemployed through no fault of their own.
Assistance in Puerto Rico, U.S. Virgin Islands, and Guam.
Individuals over the age of 64 years or disabled individuals over the age of 17 years living in Puerto Rico, the U.S. Virgin Islands, or Guam are entitled to monthly cash payments. This money aims at helping these individuals get the basic needs of life. One would say this is a good use of taxpayers’ money.
That is all on this episode. Check out the eligibility requirements for each assistance and ascertain if you can get it. There is absolutely nothing wrong with saving a little cash.
