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