Very excited to see my research in the AEA Papers & Proceedings! Bottom line: Currently, the Child and Dependent Care Credit provides little value to families, but a temporary expansion during the Covid-19 pandemic made it much more effective at mitigating out-of-pocket care costs.
What Is the Value of the Child and Dependent Care Credit?
(May 2025) - The Child and Dependent Care Credit (CDCC) subsidizes child care costs for working families. In response to the COVID-19 pandemic, the American Rescue Plan Act of 2021 increased the CDCC'...
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