With an AGI of $125,000 or less the credit is worth 50% of qualifying child care expenses. The 2021 Child and Dependent Care Credit amount began to phase out when adjusted gross income (AGI) reached over $125,000.That means even if you didn’t owe any taxes, you were able to get all of the credit in the form of a refund. Credit was refundable if you lived in the U.S.The percentage and the child care expense thresholds changed, so you could get a credit up to 50% of $8,000 ($4,000) in child care expenses for one child under 13, an incapacitated spouse or parent, or another dependent so you could work and up to 50% of $16,000 in expenses ($8,000) If you have two or more dependents.Under the American Rescue Plan Act of 2021, huge changes were made expanding the Child and Dependent Care Credit for 2021 taxes only (the taxes you file in 2022). How is Child and Dependent Care Credit changing for tax year 2022? Tax Year 2021 The credit is available if you earn up to $200,000 as single taxpayer or head of household (or up to $400,000 if you are a married couple filing jointly).Advance payments were not issued for tax year 2022.Refundable up to $1,400, but no longer fully refundable.Each dependent child must be under age 17.You were eligible for the full credit if your income was under $150,000 for couples who are married filing jointly and $75,000 if you were single or $112,500 as head of household.įor tax year 2022, the Child Tax Credit reverts back to the benefits available prior to the American Rescue Plan as follows:. ![]()
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