erienewsnow.com 14 Jan, 2022 19:00 am

5 Tax changes that can boost your refund this year - Erie News Now

5 Tax changes that can boost your refund this year - Erie News Now
By Jeanne Sahadi, CNN Business

More generous child and dependent care tax credit If you were working or going to school and paying for the care of a child under 13 or another family member who is not mentally or physically able to care for themselves, you likely will benefit from the temporary increases made to the child and dependent care credit.A temporary expansion of the child tax credit The maximum value of the child tax credit is temporarily $3,000 per child ages 6 through 17 and $3,600 per child ages 5 and under.Except for the wealthiest households, "anyone with children ages 17 and below is likely eligible to claim the child tax credit," Pickering said.Expansion of the Earned Income Tax Credit For 2021 only, low- and moderate-income wage earners who do not have qualifying children may be eligible for a larger Earned Income Tax Credit than before.

Unlike in prior years, the credit is fully refundable for 2021, meaning you can get the maximum amount of the credit even if it exceeds your federal income tax liability for the year.The American Rescue Plan nearly tripled the maximum credit available to $1,502.

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