Congress has legislated certain tax credits and savings incentives focused on relieving the cost of child care for eligible taxpayers that may provide additional savings for you.
- The Child and Dependent Care Tax Credit is a federal tax credit available for eligible taxpayers to assist in reducing your year-end tax liability.
- The Child Tax Credit program may reduce the Federal tax you owe for each qualifying child under the age of 17.
- A Dependent Care Flexible Spending Account (FSA) may be provided by your employer to allow you to set aside pre-tax dollars for child care costs.
- Various states provide additional incentives for qualified taxpayers.
These tax credits and FSA changes will impact every family differently. As we are not tax professionals, we cannot advise you on the specific impact to your family. It’s best to consult with a tax professional or preparer (tax preparation software will also have information). Or visit irs.gov to learn more.