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Increased tax exclusion limit for dependent child care assistance programs.

This bill increases the maximum amount employees can exclude from taxable income under Dependent Care Assistance Programs. The limit rises from $7,500 to $10,500 annually, allowing working families to save more money on taxes when paying for child care services like daycares or nannies. This change directly benefits the personal finances of families utilizing these programs, taking effect in calendar years starting after the enactment date.
Key points
Increased Exclusion Limit: The maximum amount that can be excluded from taxable income for dependent care assistance increases from $7,500 to $10,500.
Financial Benefit for Families: This change means lower taxes and greater savings for working parents enrolled in employer-sponsored dependent care plans.
Effective Date: The new, higher limits will apply to amounts paid or incurred in calendar years beginning after the date the Act is signed into law.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5558
Sponsor: Rep. Schrier, Kim [D-WA-8]
Process start date: 2025-09-23