- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
You should qualify for both the child tax credit (CTC) and the credit for dependent care, based on current law. Most of the extra $1,600 worth of CTC you won't qualify for, but since your combined income is under $400,000 you will still qualify for around $2,000 CTC for each child.
At your income level, the child care credit will be 20% of up to $16,000 in child care expenses for tax year 2021, so the maximum credit would be $3,200. This is the benefit you get by paying the expenses yourself, rather than through your employer. The law may revert back to the original limit of 20% of up to $6,000 of expenses for tax year 2022, unless the increased limit for 2021 is extended.
[Edited 1/12/22 at 3:09 PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎January 11, 2022
5:47 PM