WFCA Act of 2023

HR 478, the WFCA Act of 2023, expands tax benefits for dependent care by adding qualified sports, tutoring (including small-group), and art expenses to eligible costs under IRS Section 129. It raises the age limit for qualifying dependents from 13 to 15 and increases the annual benefit cap from $5,000 to $15,000 for families. The bill also allows unused benefits of $20 or more to carry forward to the next tax year without affecting gross income. These changes directly affect families with children under 15 who use dependent care assistance programs for eligible educational or extracurricular activities.