Improving Child Care for Working Families Act of 2023
Source: Congress.gov ·
257 words in original text
What This Bill Does
This bill changes the tax rules for dependent care assistance programs. It increases the amount of money that workers can exclude from their taxable income (income you don't have to pay taxes on) when they receive help paying for childcare through their employer.
Who It Affects
Workers who use employer-sponsored dependent care assistance programs to pay for childcare.
Key Provisions
• The maximum amount workers can exclude from taxable income for dependent care assistance increases from $5,000 to $10,500 per year (Sec. 2(a)).
What Changes
If this bill becomes law, employees would be able to exclude up to $10,500 in dependent care assistance from their taxable income instead of the current $5,000 limit. This means they would owe less in taxes.
Important Definitions
Dependent care assistance programs: employer-sponsored programs that help workers pay for childcare or other care for dependents (people who rely on them for financial support).
Effective Date
The changes apply to amounts paid or incurred in calendar years beginning after the date this bill is signed into law (Sec. 2(b)).
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.