The expansion of the Child and Dependent Care Credit through the American Rescue Plan in 2021 can provide up to $8,000 per child, which far exceeds the original limit of $2,100. It allows families to claim a credit worth 50% of child care expenses, meaning up to $16,000 for two or more children.
Simply put, families who spent at least $16,000 can get half back from the IRS upon filing a 2021 tax return.
When you file your tax return, you will need to include Form 2441, Child and Dependent Care Expenses.
CONTACT US TODAY if you have any questions or need help with the preparation of your tax returns.
Sincerely,
Maryna Varabyova, CPA
(877) 677-3737
info@vmtaxcpa.com
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