IRS child tax credit 2021 LIVE
CHILD AND DEPENDENT CARE CREDIT
The credit is aimed at allowing people to return to work while not facing hefty bills for care costs in their absence.
“The Child and Dependent Care Credit can get you up to 50% of up to $8,000 of child care and similar costs for a child under 13, a spouse or parent who cannot care for themselves, or another dependent so that you can work (and up to $16,000 of expenses for two or more dependents),” Nerdwallet explains.
This credit is another part of the American Rescue Plan, passed in March, and can start being claimed for this tax year in 2022.
For instance, if parents regularly use a babysitter in 2021, they will be able to claim that as a child care expense for this tax year when tax filing time comes around next year.