One of the biggest tax breaks of the pandemic era has expired

Don't expect a bigger-than-usual tax credit for childcare costs: The massive expansion of the Child Dependent Care Tax Credit (CDCTC) in 2021 was a one-time bonus that won't be refunded.

A loan that pays you back or cares for disabled relatives or others got a major but temporary boost as part of a pandemic relief bill that takes effect in 2021. The expansion was part of President Joe Biden's American Rescue Plan. and applied only to last year's taxes.

Depending on your situation, the amount you receive for CDCTC this time could be thousands of dollars less than last year. The maximum value of the loan is now $1,050 if you have one dependent compared to $4,000 and $8,000 last year, and $2,100 for two or more.

The extended credit was one of several government programs providing cash directly to households to help offset the spike in unemployment caused by the COVID-19 pandemic. Last year, tax refunds were on average due to new concessions. But as the economy continues to reopen in 2022, and those stimulus programs, including the CDCTC, have fallen by the wayside.

In 2022, the CDCTC allows you to claim up to $3,000 in expenses if you're an individual ($6,000 for couples filing jointly) and claim up to 35% of that as a credit, and 20% if it's over $43,000. This is a sharp decrease from 2021, when individuals can claim 50% of expenses up to $8,000 for an individual and $16,000 for a couple.

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