The American Rescue Plan Act which was enacted in March 2021, expanded two common tax credits for families, the Child Tax Credit (CTC) and the Child and Dependent Care Credit (CDCC).
The CTC and CDCC are increased in amount per qualifying child, and these additional credit amounts are subject to a higher phase-out range based on modified adjusted gross income. In addition, the CTC and CDCC are fully refundable for 2021.