Tag: child care deduction

How Will the Child Care Deduction Affect Your Taxes?

Nashua, NH Resident Looks for Answers

Child tax credit payments began over the summer and will continue through the year for qualifying families.  When you go to file your 2021 taxes, you will only be eligible for half of the normal child care credit because the other half was already received throughout the second half of 2021.  Since the deduction is based off of your 2020 income, a significant increase in your income may leave you owing some of the money back to the IRS if it exceeds the thresholds set. 

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405 Daniel Webster Hwy
Merrimack, NH 03054
(603) 429-2009

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