Bill 118 s 5412, also known as the Dependent Care Assistance Program Enhancement Act, aims to make changes to the Internal Revenue Code of 1986. The main goal of this bill is to increase the amount of money that can be excluded from taxes for dependent care assistance programs.
Currently, the IRS allows individuals to exclude up to $5,000 per year from their taxable income for dependent care assistance programs. This money can be used to pay for childcare expenses for children under the age of 13 or for elderly or disabled dependents. The purpose of this exclusion is to help working parents and caregivers afford the cost of care for their dependents while they are at work.
The proposed amendment in Bill 118 s 5412 seeks to increase this exclusion amount to $10,000 per year. This would provide even more financial relief to individuals who rely on dependent care assistance programs to help cover the costs of care for their loved ones.
If passed, this bill would provide much-needed support to working families and caregivers who are struggling to afford the high cost of childcare and elder care. It would also help to incentivize employers to offer dependent care assistance programs to their employees, as the increased exclusion amount would make these programs even more attractive.
Overall, Bill 118 s 5412 is a positive step towards providing financial relief to individuals who rely on dependent care assistance programs to help cover the costs of caring for their loved ones.