A number of federal tax credit programs are designed specifically for workers with children and dependents. The goal of these programs is to help workers maintain employment by offsetting the costs related to caring for children and dependents. This section includes general information about tax credits for families, as well as specific information about the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Adoption Tax Credit. In addition, this section explores credits available for those investing in their education and health.
The American Rescue Plan Act was signed into law in March 2021 to provide relief to individuals, families, businesses, and tax-exempt organizations during the ongoing COVID-19 pandemic. Survivors may be eligible to receive $1400 per person through the American Rescue Plan Act (and more if they have children or other dependents). In addition to these economic impact payments, the act includes critical expansions of the Child Tax Credit and EITC, expanded unemployment benefits, and more. For more information on the American Rescue Plan Act and COVID-19 tax relief, see the following resources:
- American Rescue Plan Act Will Help Millions and Bolster the Economy from the Center on Budget and Policy Priorities
- Coronavirus Tax Relief from the IRS
- FACT SHEET: The American Rescue Plan Will Deliver Immediate Economic Relief to Families from the IRS
The American Rescue Plan Act made important changes to the Child Tax Credit that helped many families receive advance payments. The American Rescue Plan Act (ARPA) of 2021 expanded the Child Tax Credit (CTC) for tax year 2021 only. This fact sheet from the IRS addresses frequently asked questions about the Advance Child Tax Credit Payments in 2021, separated by topic.