Expanding Child Care Tax Breaks
Expanding tax breaks for child care costs has support from lawmakers. President Trump wants to give more tax benefits to help working parents pay for the cost of care for their young children and has made it part of his tax plan. Democrats have also put forth tax proposals to help make child care more affordable. A recent bipartisan House proposal would allow taxpayers to contribute up to 10,500 pretax to dependent-care flexible spending accounts. That’s more than double the $5,000 maximum you can now fund through an FSA. Employers that match contributions would get a credit of up to $1,000 per employee. The bill would also give small employers a credit for starting up new FSA programs.