Enhanced Tax Credit for Child and Dependent Care
This act increases tax relief for families incurring child or dependent care expenses. This means more money could return to your pocket, helping to cover costs for daycare, preschool, or caregivers. The changes aim to ease the financial burden on parents and caregivers.
Key points
Increased maximum expenses eligible for the credit: up to $8,000 for one child and up to $16,000 for two or more children.
Higher credit percentage: up to 50% of care costs for lower-income families, gradually reduced for those earning above $125,000.
The credit becomes fully refundable for certain taxpayers, meaning you can receive money back even if you don't owe enough taxes.
Annual inflation adjustment for credit amounts to maintain its value over time.
Changes apply to tax years beginning after December 31, 2024.
Status:
Introduced
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