Child Tax Credits in COVID-19 Stimulus Could Provide an Opportunity to Stretch Your Childcare Budget

Temporary child and childcare tax credits in the American Rescue Plan could benefit prospective and current Goddard parents.

The American Rescue Plan signed into law in March 2021 could benefit prospective and current Goddard parents. The package includes an expansion of certain child and childcare-related tax credits that could stretch your budget* by helping to cover the cost of some childcare expenses.

This broad-reaching legislation could provide tax benefit to many families, and we want to make sure our Goddard community is aware of and able to explore if they can take advantage of this opportunity.

CHILD TAX CREDIT – HOW MUCH CAN I QUALIFY FOR?

Beginning in tax year 2021 (the taxes you file in 2022) the Child Tax Credit will be expanded, increasing the amount that families claiming the Child Tax Credit could receive from $2,000 up to:

            • $3,600 for each child under 6

            • $3,000 for each child age 6-17

Please note that the total Child Tax Credit amount is dependent on income and other factors. We recommend consulting with your accountant, financial advisor, or attorney regarding eligibility and other matters.

Visit Kiplinger’s 2021 Child Tax Credit Calculator for an estimate of how much you could receive in advance from July – December 2021, and how much you could claim as a Child Tax Credit on your 2021 tax return.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

The American Rescue Plan also expands for 2021 the Child and Dependent Care Tax Credit (CDCTC) that helps working families cover expenses for the care of children, including childcare centers. Eligibility for the CDCTC and the amount of any credit is based on household income and other factors. More information can be found here. Again, we recommend consulting with your accountant or financial advisor.

WANT TO LEARN MORE?

The IRS is currently reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. For more information, check back for updates on Credit and Deductions for Individuals.

At Goddard, we know how important it is for families to invest in their children’s future. Here, we use the most current, academically endorsed methods to ensure that children have fun while learning the skills they need for long-term success in school and in life. And we want to offer the opportunity for your children to experience our safe, nurturing environment while making the most of your childcare budget!

ADDITIONAL PARENT RESOURCES

Want to learn more about the great opportunities Goddard provides to provide a safe, nurturing and academic experience for your child? Check out our Parenting Under Five expert advice videos, read about our Summer Learning Program, or review our COVID-19 safety information.

CONTACT A SCHOOL TODAY!

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*Disclaimer: This communication is for informational purposes and should not be taken as legal or financial advice.