ABSTRACT

Child and Dependent Care Tax Credit (CDCTC): Temporary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA; P.l. 117-2) [Updated May 10, 2021]   [open pdf - 908KB]

From the Document: "The child and dependent care tax credit (CDCTC) can help to partially offset working families' child care expenses. The American Rescue Plan Act (P.L. 117-2; ARPA) provided a temporary expansion of the CDCTC for 2021. This Insight summarizes the temporary change, highlighting the credit amount for 2021 before and after the temporary expansion. The Biden Administration has proposed [hyperlink] making the ARPA expansion of the CDCTC permanent. Beyond the CDCTC, working families may also be eligible to receive tax-free employer-sponsored child care benefits, often in the form of a flexible spending arrangement/account (FSA). ARPA increased the maximum amount of tax-free child care benefits employers could provide from $5,000 to $10,500 for 2021 [hyperlink]. This change is not discussed further in this Insight."

Report Number:
CRS Insight, IN11645
Author:
Publisher:
Date:
2021-05-10
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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