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Tax Relief and Grants to Boost Youth Sports and Physical Activity.

This law introduces new tax benefits for families, allowing them to claim expenses related to physical activities for children aged 4 to 17 under existing tax credits. It also significantly raises the contribution limits for Dependent Care Flexible Spending Arrangements (FSAs). Furthermore, it establishes a $100 million grant program to help local organizations make recreational youth sports more affordable and accessible.
Key points
Families can claim up to $1,000 ($2,000 for joint filers) annually for costs like gym memberships, registration fees, and specific sports equipment for their children.
The maximum pre-tax contribution limit for Dependent Care FSAs increases to $10,000 ($12,000 for single parents), allowing more pre-tax savings for dependent care.
Federal grants will support local, non-profit groups in offering low-cost recreational sports programs, specifically excluding funding for elite clubs or travel tournaments.
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Additional Information
Print number: 118_HR_5238
Sponsor: Rep. Gottheimer, Josh [D-NJ-5]
Process start date: 2023-08-18