American Rescue Plan 2021: Child and Dependent Care Credit

        The tax deadline has passed, but we are still learning more about how the American Rescue Plan (APR) is impacting a variety of tax situations. This is something to keep in mind for those who have not filed, have filed an extension, or may see the need to file an amended Tax Return.

          For example, the Child and Dependent Care credit has increased greatly for 2021. This credit would apply to children 13 and younger, or a child of any age or spouse that is unable to care for themselves and lives with the Taxpayer for over half the year. The allowable amount of related expenses that can be claimed has more than doubled. However, these increases are only available for 2021. They are also fully refundable, which means that an eligible person can receive this credit even if they do not owe any federal income tax. Check with your Qualified Tax Professional to see if this may apply to you.

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