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New Child Care Credit

If you have children under 17, pay attention when filing your taxes next year. Starting this year, you can get up to $3,000 per dependent under 17 and up to $3,600 if the child is under 6 on December 31st of this year. You can qualify for the full amount if your gross income is under $75,000 for single filers and $150,000 if you are filing jointly. The credit is lowered as your income increases. Keep in mind: you will get this full credit on your 2021 tax returns, or you take the advance payments.

Advance payments are half of the credit you would receive on your 2021 tax return. The other half has to be claimed on your tax return. Advance payments run monthly, ending in December of this year. The IRS uses your most recent tax return to determine whether you qualify for the tax credit, and for how much.

Check out this tool from the IRS to see if you qualify.