Increased Tax Relief for Childcare and Inflation Adjustment.
This act raises the maximum amount that can be contributed to dependent care assistance programs from $5,000 to $10,000 annually. Additionally, these amounts will be automatically adjusted for inflation, providing greater financial support for families covering childcare costs.
Key points
The maximum tax relief for dependent care increases from $5,000 to $10,000.
Relief amounts will be annually adjusted for inflation, protecting their purchasing power.
Changes apply to calendar years beginning after December 31, 2023.
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