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June 30, 2021 11:38 pm
IRS FAQs on the Dependent Care Credit for 2021
The American Rescue Plan Act of 2021, which was enacted on March 13, 2021, greatly expanded the dependent care credit for 2021. It raised the cap on expenses taken into account in figuring the credit and made the credit fully refundable for 2021. The IRS has extensive FAQs at https://www.irs.gov/newsroom/child-and-dependent-care-tax-credit-faqs on the credit to help you determine if you’re eligible for it, which work-related expenses qualify, and how to figure the credit amount.
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Revenue ruling
A revenue ruling is the Commissioner’s “official interpretation of the interpretation of the law” and generally is binding on revenue agents and other IRS officials. Taxpayers generally may rely on published revenue rulings in determining the tax treatment of their own transactions that arise out of similar facts and circumstances.
