Increased Tax Benefits for Childcare and Dependent Care Expenses.
This act aims to help families with the costs of childcare and dependent care. It increases the amount that can be set aside tax-free for these expenses, expands the types of eligible activities to include sports, arts, and tutoring, and allows unused funds to be carried over to the next year. Additionally, it raises the age limit for eligible dependents from 13 to 15 years old.
Key points
Maximum tax-free contribution for dependent care increased from $5,000 to $15,000 annually.
New eligible expenses include sports, art, and tutoring for dependents.
Age limit for eligible dependents raised from 13 to 15 years old.
Allows unused funds in dependent care flexible spending accounts to be carried forward to the next year.
Expired
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