Bill > HR1967

This bill aims to enhance the Child and Dependent Care Tax Credit (CDCTC) by making several changes to the existing tax credit. Specifically, it would: 1) Increase the adjusted gross income threshold above which the credit is phased out, from $15,000 to $120,000. 2) Increase the maximum credit amounts from $3,000 to $6,000 for one qualifying individual, and from $6,000 to $12,000 for two or more qualifying individuals. 3) Provide special rules for married couples filing separate tax returns to ensure the credit is still available. 4) Require the income thresholds and maximum credit amounts to be adjusted for inflation annually starting in 2021. 5) Convert the CDCTC from a non-refundable credit to a fully refundable credit, allowing taxpayers to receive the full benefit of the credit even if they do not owe any federal income tax. These changes are intended to make the CDCTC more accessible and valuable for families with children or other dependents, in order to help offset the costs of care that enables gainful employment.