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LOW INCOME STATEMENT FORM LISF PLEASE READ

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Welcome to WCS Money Tutorials. Today’s topic is the 2021 Child and Dependent Care Credit. This credit could be worth up to $8000 and, under certain circumstances, the qualified expenses that determine the credit can be paid to family members. I want to point out that the child and dependent care credit is not the child tax credit. It is an additional credit to help working parents pay for childcare. However, most people eligible for the child and dependent care credit will also be able to claim the child tax credit. The major changes to the child and dependent care credit that apply only to the 2021 tax year include an increase in the credit rate percentage from 35% to 50%, which increases the maximum credit to $4,000 for 1 qualifying dependent and $8,000 for 2 or more dependents. Taxpayers with incomes of up to $125,000 qualify for the maximum 50% rate. But the biggest change for this year only is that the credit is fully refundable, which means many lower income taxpayers will ben

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