Type of Clients: Families.
Situation: The new American Rescue Plan Act of 2021 (ARPA) makes major, but temporary, changes to the rules for the child and dependent care credit.
Deadline: The changes only affect a client's 2021 tax year, so there's no immediate compliance impact. However, the favorable changes might affect how much a client is willing to spend on child and dependent care expenses between now and December 31.
Tax Action Required: Read this release for an analysis of the ARPA changes and be ready to advise clients accordingly. As stated, the changes will affect 2021 returns that are prepared next year.
To dig deeper, visit the original article on the Thomson Reuters blog.