If you have a topic of interest you would like to see us cover, feel free to reach out and let us know; we are always happy to hear your thoughts, ideas, and feedback.
04 / 02 / 2021 by Greg Freyman, CPA in Personal Tax

American Rescue Act Plan Of 2021 – Dependent Care Tax Credit Changes – What You Need To Know –



Significant changes came for the dependent care tax credit in 2021.

What you need to know:

-tax law changes apply to 2021 only
-abode rule for 1/2 year in US
-dependent care qualification rules stay the same
-tax credit becomes refundable
-care costs increased to $8,000 for one child and $16,000 for a second
-credit is a huge 50% of care costs for an adjusted gross income (AGI) of up to $125,000
-20% tax credit for AGI’s ranging from $185,000 to $400,000
-credit will zero at AGI’s at $440,000
-FSA contribution goes from $5,000 to $10,500

Tags:  
Share post:

Contact our office at (904) 330-1200 or info@taxproff.com to discuss Tangible Personal Property Tax for your business, or if you have any questions.
Contact Us Form
Get in touch with us