Source: United States Senator for Colorado Michael Bennet
Denver – Colorado U.S. Senator Michael Bennet today encouraged Coloradans to file their taxes to claim their expanded Child and Dependent Care Tax Credit (CDCTC) to help cover the cost of child care. In Colorado, the average child care cost for a 4-year-old is $12,390 per year.
“Families in Colorado and across our nation are facing rising costs, and one of the biggest expenses families have is child care,” said Bennet. “I’m glad we expanded the Child and Dependent Care Tax Credit through the American Rescue Plan Act, which will help low- and middle-income families cover the cost of child care to reduce that financial burden and allow parents to stay at work.”
Thanks to the American Rescue Plan Act, the value of the CDCTC is dramatically expanded for this tax year – up to $4,000 per child. It is also now fully refundable, meaning many low-income families can now receive it for the first time, and middle-income families can get a larger refund than ever before. Families can use the CDCTC for out-of-pocket expenses such as center-based care, summer school, or babysitters. Colorado families can claim the expanded CDCTC on their tax return. More information on the CDCTC is available here.
Most Americans can file taxes for free through the Internal Revenue Service (IRS) Free File Program. Additionally, if a family’s income falls below $58,000, they can receive help filing taxes through the IRS’s Volunteer Income Tax Assistance (VITA) sites. Coloradans who qualify for help filing their taxes can visit Colorado VITA for assistance.
The American Rescue Pan Act also expanded the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). More information on eligibility for the CTC and EITC and how to claim the credits is available here.