The Internal Revenue Service is providing information about the child and dependent care credit and the paid sick and family leave credit, which were expanded under the American Rescue Plan.
The IRS posted two separate sets of frequently asked questions Friday to help families and small and mid-sized employers in claiming the tax credits under the Biden administration’s stimulus plan, which Congress passed in March.
The guidance provides helpful information to both taxpayers and tax professionals about how the tax credits have been expanded for this year. The Biden administration has also proposed an American Families Plan that would extend the expanded child and childcare tax credits beyond this year.
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Spring Cleaning Your Personal Tax Files
The general rule for retaining federal tax records is three years. However, there are many exceptions to this rule so it helps to keep records longer.