The amount of child-care expenses you can claim for last year is 266% higher than before.
Tax season officially starts Jan. 24, and big changes to the child and dependent care credit means parents and caregivers could see a large increase in their tax refunds this year. The child and dependent care credit lets taxpayers write off expenses related to child or dependent care as a direct reduction of their federal taxes. It applies to expenses for day care, babysitters or care-related transportation for children or dependents.
Thanks to a one-time expansion of the credit in the American Rescue Plan Act, parents who paid for child care in 2021 are eligible to receive up to 50% of their child care expenses back as a tax break or refund. The amount of tax credit you'll be able to claim maxes out at $8,000 for one dependent and $16,000 ...
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