Families would get more tax help for childcare costs, with limits adjusted for inflation.
This bill would let families set aside more pre-tax money for childcare and other dependent care costs. The maximum amount would double and then be adjusted each year for inflation, helping families keep up with rising expenses. These changes would start for tax years beginning after December 31, 2024.
Today, families can put up to $5,000 ($2,500 for married filing separately) into dependent care assistance programs, and this amount does not change with inflation. If this bill passes, families would be able to put up to $10,000 ($5,000 for married filing separately) into these programs, and these limits would be adjusted for inflation every year, starting in 2025.
HR 413 · 119th Congress · January 15, 2025 · AI Summary by gemini-2.5-flash · 9/10
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