WASHINGTON — The Internal Revenue Service today reminded taxpayers of an important tax credit that can help people who pay someone to care for their children or other family members while they work, look for work or attend an institution of learning, to qualify for an important tax credit.

El Credit for child and dependent care expenses it's improved for tax year 2021. This means more taxpayers can qualify this year, and the credit has more value. Taxpayers with an adjusted gross income of more than $438,000 are not eligible for this credit even though they may have previously claimed it.

“There are many important tax credits available to families, and we don't want anyone to miss out on the Child and Dependent Care Expense Credit,” said IRS Commissioner Chuck Rettig. “We encourage families and others who may qualify for this credit to carefully review the criteria to ensure they receive the maximum amount to which they are entitled. We also encourage communities of tax professionals and others to share this important information.”

Depending on their income, taxpayers could get a credit of up to 50 percent of your qualified child care expenses. For tax year 2021, the maximum eligible expense for this credit is $8,000 for one child and $16,000 for two or more.

For purposes of this credit, the IRS defines a qualifying person as:

• A dependent of the taxpayer who is under the age of 13 when care is provided.
   
• The spouse of a taxpayer who is physically or mentally incapable of caring for himself or herself and lived with the taxpayer for more than half the year.
   
• Someone who is physically or mentally unable to care for themselves and lived with the taxpayer for six months and/or:
   
  1. The qualifying person was a dependent of the taxpayer or
  2. They would have been a dependent of the taxpayer except for one of the following criteria:
      
     • The qualifying person received a gross income of $4,300 or more
     • Qualifying person filed a joint return
     • The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else's return

Taxpayers can use the Interactive Tax Assistant or see frequently asked questions on IRS.gov to determine if they can claim this credit. For IRS members, a special promotional brochure (in English) PDF.

The IRS has been highlighting this credit in many ways, such as in tax tips, data sheets, Press releases, as well as through Twitter and other IRS social media and outreach channels. She is also featured in a special video on the channel IRS Youtube.