The Child & Dependent Care Credit underwent major changes in 2021 as part of the American Rescue Plan Act. The most significant change includes an increase in the credit of up to $4,000 for one qualifying person and $8,000 for two or more qualifying people. Additionally the credit is potentially refundable, meaning you might not have to owe taxes in order to claim the credit. Along with these changes came a new income phase-out at $438,000.
In order to claim the credit, married taxpayers must file jointly.
You can feel confident that we will carefully review all submitted documentation to determine the best way for you to file in order to take advantage of as many applicable tax benefits as possible.