American Rescue Plan Act of 2021

The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced dependent and child care credit for 2021. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that the taxpayer can be gainfully employed.

toys and legos sitting in an open draw inside a daycare center; image used for blog post about child care credit under American Rescue Plan Act of 2021

Note that a credit reduces your tax bill dollar for dollar.


Continue Reading Child Care May Be Less Expensive with New Tax Law

The American Rescue Plan Act, signed into law on March 11, 2021, provides a variety of tax and financial relief to help mitigate the effects of the COVID-19 pandemic. Among the many initiatives are direct payments that will be made to eligible individuals. And parents under certain income thresholds will also receive additional payments in the coming months through a greatly revised Child Tax Credit.

hundred dollar bills underneath a health mask; image used for blog post about direct payments from American Rescue Plan Act of 2021

Here are some answers to questions about these payments.


Continue Reading The Child Tax Credit Under American Rescue Plan Act