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cdeleon87
New Member

Has Turbo tax updated the child dependent care tax credit? I am getting $1,200 but I thought it was updated to go as high as $6k

 
2 Replies
xmasbaby0
Level 15

Has Turbo tax updated the child dependent care tax credit? I am getting $1,200 but I thought it was updated to go as high as $6k

Are you asking about the change in the newly passed tax law for the childcare credit?  That is for your 2021 tax return that you will prepare and file NEXT year.   It has no effect on your 2020 tax return.

 

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DoninGA
Level 15

Has Turbo tax updated the child dependent care tax credit? I am getting $1,200 but I thought it was updated to go as high as $6k

The increase is effective for tax year 2021, not for tax year 2020.

 

The act makes various changes to the Sec. 21 child and dependent care credit, effective for 2021 only, including making it refundable. The credit will be worth 50% of eligible expenses, up to a limit based on income, making the credit worth up to $4,000 for one qualifying individual and up to $8,000 for two or more. Credit reduction will start at household income levels over $125,000. For households with income over $400,000, the credit can be reduced below 20%.

The act also increases the exclusion for employer-provided dependent care assistance to $10,500 for 2021.

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