Stimulus Checks in 2024 Aren’t Likely — Take Advantage of These 5 Tax Credits Instead
COVID-era stimulus programs have largely faded from view for most Americans, except for those who live in states that are still offering their own form of stimulus. But you can still take advantage of certain tax credits that could give you a financial boost in 2024.
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For example, starting in January, electric vehicle tax credits of up to $7,500 for new clean vehicles and up to $4,000 for used EVs can be applied at the point of sale. You can receive full credits from dealers even if you owe federal taxes.
Similarly, if you’ve made home improvements to reduce your carbon footprint you might be eligible for the residential energy property credit.
Here’s a look at five other tax credits available in 2024.
Child Tax Credit
The CTC was expanded during the COVID-19 pandemic to give families with kids more financial relief. The expanded benefits have since expired and efforts to revive them at the federal level have so far fallen short. But you can still claim the normal CTC for each qualifying child who has a Social Security number and is under the age of 17 at the end of 2023. The CTC is $2,000 per qualifying child in the 2023 tax year, unchanged from 2022. However, the refundable portion of the Child Tax Credit increased from $1,500 to $1,600.
Earned Income Tax Credit (EITC)
The 2024 tax year maximum EITC amount is $7,830 for qualifying taxpayers who have three or more qualifying children, according to the IRS. That’s up from $7,430 for tax year 2023. The EITC is designed to lower the tax burden for low- to moderate-income households.
Child and Dependent Care Credit
You might be able to claim the child and dependent care credit if you paid day-care expenses for a child under 13 years old in 2023, or provided care for a spouse or parent unable to care for themselves. This benefit allows a credit of up to 35% of $3,000 for one dependent or $6,000 for two or more dependents, SI Live reported.
American Opportunity Tax Credit
This is an educational tax benefit that applies to the first four years of qualified higher education expenses and provides a tax break for expenses such as tuition, books and other supplies. The credit is worth up to $2,500 per eligible student. You are also refunded 40% of your total credit — $1,000 maximum — that exceeds your tax liability.
Saver’s Credit
Also known as the Retirement Savings Contributions Credit, this is available if you make contributions to your IRA or employer-sponsored 401(k) retirement plan. The IRS stated that depending on the adjusted gross income reported on your Form 1040, the amount of the credit will be 50%, 20% or 10% of one of the following:
Contributions made to a traditional or Roth IRA
Elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP or SIMPLE plan
Voluntary employee contributions (after-tax) to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan
501(c)(18)(D) plan contributions
Contributions to an ABLE account (if you are the designated beneficiary)
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This article originally appeared on GOBankingRates.com: Stimulus Checks in 2024 Aren’t Likely — Take Advantage of These 5 Tax Credits Instead
