# All Dependents Count Act of 2021

This bill makes a change to how the government calculates tax credits for families with children and other dependents. Right now, when you claim a dependent on your taxes—whether that's a child, elderly parent, or disabled family member—you get a tax credit worth a certain amount of money. The problem is that this credit is currently limited based on your income level. If you earn above a certain threshold, the credit starts to shrink or disappear entirely, even though you're still supporting that dependent.

The All Dependents Count Act removes those income limits on dependent tax credits. This means that no matter how much money you make, you'd get the full tax credit for each person you're supporting. So if you're a higher-earning family with kids or elderly relatives you're caring for, you'd get the same tax benefit as a lower-income family in the same situation. The bill essentially says that the cost of supporting a dependent shouldn't be penalized just because you have a higher income.

The practical effect would be that many middle-class and upper-middle-class families would see their tax bills go down, since they'd qualify for tax credits they currently can't fully use. Families supporting multiple dependents would see the biggest benefit. However, this would also reduce the amount of tax revenue the government collects, which could affect the federal budget or require other changes to tax policy to make up the difference.

All Dependents Count Act of 2021

Smith, Tina

All Dependents Count Act of 2021 This bill extends the 2020 recovery rebates of the Coronavirus Aid, Relief, and Economic Security Act to all taxpayer dependents.