Child Care Credit Expanded for 2021 (Up to $8,000 Available!)

While monthly child tax credit payments have gotten more attention, the American Rescue Plan Act offers another benefit for families with younger children – an enhanced child and dependent care credit for 2021. Not only will millions of families get a larger credit when they file their tax return next year, but many more Americans will get the full credit amount for 2021. It will also generate tax refunds for many families, which is something the credit didn't do before. These enhancements will make a significant impact on the bottom line for millions of people with childcare expenses this year.

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The changes are only temporary, though. As it stands right now, they only