Enhanced Tax Credit for Child and Dependent Care
This act increases the Child and Dependent Care Tax Credit, meaning families spending money on care for children or adult dependents can receive a larger tax refund. The changes aim to help more families cover care costs by making the credit accessible to a wider range of taxpayers, including those with lower incomes, by making it fully refundable.
Key points
The maximum amount of expenses eligible for the credit increases from $3,000 to $8,000 for one child and from $6,000 to $16,000 for two or more children.
The credit becomes fully refundable for certain taxpayers, meaning they can receive money back even if they don't owe enough in taxes.
The income threshold at which the credit begins to phase out is increased, allowing more middle-income families to benefit from a higher credit.
Credit amounts will be adjusted annually for inflation to maintain their value over time.
Introduced
Citizen Poll