Families could get larger tax refunds for child and dependent care expenses.
This bill would increase the amount of the Child and Dependent Care Tax Credit, helping families cover costs for things like daycare or elder care. It would also make the credit refundable for many families, meaning they could get money back even if they don't owe federal income taxes. These changes would take effect for tax years starting after December 31, 2024.
Today, the Child and Dependent Care Tax Credit has lower limits on eligible expenses ($3,000 for one person, $6,000 for two or more) and is not refundable, meaning families only benefit if they owe taxes. After this bill, families could count significantly more in care expenses towards the credit ($8,000 for one person, $16,000 for two or more), and many would receive a refund even if they don't owe taxes. The credit's value would also be adjusted for inflation each year.
HR 2994 · 119th Congress · April 24, 2025 · AI Summary by gemini-2.5-flash · 9/10
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