Do you pay for care for a child under age 13 or other individual incapable of self-care? You may qualify for a larger child and dependent care tax credit for 2021. The American Rescue Plan Act increased the credit amount and the percentage of employment-related expenses for care considered in calculating it. The credit phase-out for higher earners was also modified and the credit is refundable for eligible taxpayers. For 2021, eligible taxpayers can claim employment-related expenses up to: $8,000 for one qualifying individual (up from $3,000) or $16,000 for two or more (up from $6,000). The maximum 2021 credit is $4,000 for one qualifying individual, or $8,000 for two or more.