How has the Child and Dependent Care Credit Changed?

The Child and Dependent Care Credit significantly expanded in 2021 and more families than ever qualify for this tax benefit. The maximum amount of credit increased from $1,050 to $4,000 if you have one qualifying dependent and increased from $2,100 to $8,000 for two or more qualifying dependents.

The credit is now "refundable," which means that you can get it even if you have very little income and don't owe any taxes.

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