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Increased tax relief for child care expenses for working families.

This act raises the amount employees can exclude from taxation for dependent care assistance programs from $5,000 to $10,500. This means families using such programs will save more on taxes, directly impacting their household budget and making child care more affordable.
Key points
The tax exclusion limit for dependent care assistance programs increases from $5,000 to $10,500 annually.
Working families using these programs will see greater savings on their taxes.
The changes will apply to amounts paid or incurred in calendar years beginning after the act's enactment date.
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Additional Information
Print number: 117_S_897
Sponsor: Sen. Ernst, Joni [R-IA]
Process start date: 2021-03-23