Working families could save more on taxes for child care costs.
This bill would let working families exclude more money from their taxable income for dependent care costs. It would raise the maximum amount people can claim from $7,500 to $10,500, helping those who use dependent care assistance programs save on taxes. These changes would start for costs paid in calendar years after the bill becomes law.
Currently, individuals can exclude up to $7,500 for dependent care assistance from their taxable income, and married individuals filing separately can exclude $3,750. If this bill becomes law, individuals would be able to exclude up to $10,500, and married individuals filing separately would be able to exclude half of that amount, which is $5,250.
HR 5558 · 119th Congress · September 23, 2025 · AI Summary by gemini-2.5-flash · 10/10
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