What financial aid options are available for parents in 2022?
The economic conditions in the United States are stretching household finances to the limit, but there is help available for families.
Throughout 2022 economic pressures have hit household finances for families all across the country. The Russian invasion of Ukraine has pushed up the price of essentials like groceries and fuel, while the long-lasting effects of the covid-19 pandemic continue to wreak havoc.
This comes as both federal and local governments are dialling back the financial relief programs, such as the boosted Child Tax Credit, that were in place during the first 18 months of the pandemic. However while those programs have ended, it may still possible to claim outstanding payments.
We take a look at the eligibility requirements for those programs, as well as a new wave of student loan forgiveness that may offer relief to families this year.
Child Tax Credit
If you were eligible to receive the Child Tax Credit at any stage of 2021, filing your taxes this year will give you access to more funds. This will be either the six-month sum of money or the full credit, if you chose not to receive it last year. For the former, you could receive up to $1,800 per child, or $3,600 per child for the latter.
The IRS has sent out millions of letters to eligible households offering guidance on how to process the Child Tax Credit on your tax return, ensuring you can receive the money you are owed.
Student loan forgiveness
Despite renewed calls from some in his own party, President Biden has baulked at the suggestion that borrowers could be awarded a student debt reduction of $50,000. Instead, the White House is looking to offer debt relief in the form of a series of more targeted initiatives designed to ease the burden for certain groups.
Here are some of the student loan forgiveness programs that you and your child may be eligible to apply for:
- Public Service Loan Forgiveness (PSLF)
- Income-Driven Repayment (IDR) Plan
- Teacher Loan Forgiveness
- Military Forgiveness
Child and Dependent Care Credit
The Child and Dependent Care Credit (CDCC) has been nearly quadrupled allowing taxpayers to write off a portion of up to $8,000 for one child or dependent and $16,000 for two or more of those expenses. Taxpayers can now claim up to 50 percent of those expenses in the credit up to a certain eligibility income threshold. Additionally, only for 2022, some who have no income but “work” will now be eligible.
To apply, complete Form 2441, Child and Dependent Care Expenses and attach to your 2022 tax return.
SNAP benefits
The Supplemental Nutrition Assistance Program (SNAP) is America’s largest food support benefit. The total you can receive has been greatly expanded for 2022.
For families of four people living in the 48 contiguous US states, including the District of Columbia, the maximum payment for the year will be $835.
The maximum is between $1,074 and $1,667 in Alaska, while people in Hawaii can receive a maximum of $1,573.
In two US dependencies, families in Guam can receive a maximum of $1,231, while those in the US Virgin Islands can receive up to $1,074.
If your state meets certain criteria, you will automatically be given the maximum payment.