CHILD Act of 2024

The CHILD Act of 2024 increases the maximum annual tax benefit for dependent care expenses from $5,000 to $10,000 (and doubles the spousal limit from $2,500 to $5,000) under Section 129 of the Internal Revenue Code. It also adds automatic annual cost-of-living adjustments to these limits, calculated using the standard inflation formula, rounded to the nearest $50. This directly affects working parents who claim dependent care expenses on their federal taxes, expanding their tax savings for childcare costs. The changes apply to calendar years beginning after December 31, 2023, and remove an outdated provision (subparagraph D) from the existing tax code.