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The IRS recently updated FAQs to help families looking to claim credits under the American Rescue Plan Act (ARPA). The child and dependent credit was enhanced under the ARPA to help families with the COVID-19 pandemic fallout and recovery underway.
The child and dependent credit is a tax credit that can help you pay for the care of eligible children and dependents. It’s calculated based on your income and percentage of expenses incurred for the care of qualifying persons to enable you to go to work, look for work, or attend school. The ARPA’s credit is up to $4,000 for one qualifying person and $8,000 for two. It also is potentially refundable, so you may not owe taxes to claim the credit, as long as you meet the other requirements.
Download the bulletin to review the FAQs help you learn if you are eligible and how to calculate your credit.
This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
