Parents: Reap tax benefits this year
Abstract: The American Rescue Plan Act (ARPA) offers some significant tax benefits for parents in 2021, including temporary increases in the child tax credit (CTC) and the child and dependent care credit (CDCC) for eligible families. It also allows parents to claim the credit for 17-year-olds (previously the cut-off age was 16). This article explains how the ARPA affects the CTC and CDCC. A brief sidebar explains that for 2021 only, advance CDC payments will be made directly to eligible families.