Early in 2021, Congress passed the American Rescue Plan, which included a provision that increased the child tax credit amount and upped the age limit of eligible children. Historically, the credit was $2,000 per eligible child under age 17. For the 2021 tax year the American Rescue Plan increased the credit to $3,000 for each child under age 18 and to $3,600 for children under age 6 at the end of the year.
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If you, your spouse, or a dependent on your tax return is currently attending school, you may be eligible for an education tax credit. The two tax credits that may be available are the American Opportunity Credit and the Lifetime Learning Credit.
These credits can be used on your federal tax return to help offset the financial burden of attaining a higher education.
More than 50 individual and business tax deductions and credits were signed into law in December 2014 as part of “The Tax Increase Prevention Act”.
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