Families with childcare costs would get a larger, more accessible tax credit.
Families paying for childcare would get a bigger tax break under this bill. It would increase the maximum credit amount and raise the income limits for who can get the most help. For many, especially those with lower incomes, the credit would also become refundable, meaning they could get money back even if they owe no taxes.
Currently, the Child and Dependent Care Tax Credit is not refundable, meaning you can only use it to reduce taxes you owe. The maximum credit percentage is 35% (phasing down to 20% for higher earners). You can count up to $3,000 in expenses for one person or $6,000 for two or more. If this bill becomes law, the maximum credit percentage would increase to 50% for families earning up to $125,000. Maximum creditable expenses would rise to $8,000 for one person and $16,000 for two or more. The credit would also become fully refundable for eligible taxpayers, allowing them to receive money back even if they owe no taxes.
S 1421 · 119th Congress · AI Summary by gemini-2.5-flash · 10/10
Sign in to see your representatives' phone numbers