You will be eligible to get more back from the money you spend on dependent care, Day Care and, or Babysitter(s).
The biggest change under The American Rescue Plan Act is that this credit is now REFUNDABLE.
Other important changes include:
- The amount of qualifying expenses increases from $3,000 to $8,000 for one qualifying dependent and from $6,000 to $16,000 for two or more qualifying dependents
- The percentage of qualifying expenses eligible for the credit increases from 35% to 50%
- The beginning of the reduction of the credit is increased from $15,000 to $125,000 of modified adjusted gross income (MAGI).