Families Can Receive Additional Tax Credit To Help With Costs Of Child Care

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WASHINGTON, D.C. – Tax season is here and the deadline to file your 2021 tax returns is on Monday, April 18.

Senator Bob Casey (D- PA) said while the child tax credit helped Pennsylvanians pocket some extra cash to help raise their kids, he wants to make sure families are taking advantage of another tax credit that can help offset childcare costs.

With the tax deadline right around the corner, Senator Bob Casey (D- PA) wants to make sure families are aware of another helpful tax credit: the Child and Dependent Care Tax Credit, which is separate from the Child Tax Credit. It’s designed to help working families offset expenses when financially providing for a child. It can also be used to care for dependents with disabilities.

“We wanted to make sure in the [American] Rescue Plan it was made more generous was to respond to the gravity of the pandemic for families trying to raise their children and get to work to pay for child care,” said Sen. Casey.

Before the pandemic, the max families could claim from this tax credit for two or more children was $6,000. Under the American Rescue Plan, families can receive up to $4,000 per child or a total of $8,000 to reimburse child care expenses in 2021.

“A lot of families have benefited already from the child tax credit can still claim the childcare credit, they’re not exclusive,” added Sen. Casey.

According to the Senator, this tax credit is good for expenses from: Center based care; Family, home-based child care; Babysitters, relatives, neighbors or friends; And before-or after school care, summer or vacation day camps. The Senator, who pulled out a chart that compares the rise in costs to the rise in child care, said many working families and mothers struggled to get back to work during the pandemic because they weren’t able to afford child care. He encourages people to look into this tax credit.

“This is one way to help them with their costs in an inflationary economy and to help them get back to work,” said the Senator.

There’s no minimum income required to claim this child care tax credit. Senator Casey said this tax credit’s eligibility is broader than ever, opening it up to more families. This beefed-up version of the child care tax credit will only last for the 2021 tax season.