Bill > S3657

This bill, the Child and Dependent Care Tax Credit Enhancement Act of 2024, aims to amend the Internal Revenue Code to enhance the Child and Dependent Care Tax Credit and make it fully refundable for certain taxpayers. The key provisions include: 1. Increasing the applicable percentage for the credit from 50% to 20% for taxpayers with adjusted gross income (AGI) between $125,000 and $400,000. 2. Increasing the dollar limit on the amount of expenses that can be claimed from $3,000 to $8,000 for one qualifying individual and from $6,000 to $16,000 for two or more qualifying individuals. 3. Allowing married couples filing separately to claim the credit based on their individual filing status, with the total credit not exceeding the amount that would have been allowed if they had filed jointly. 4. Indexing the $125,000 AGI threshold and the dollar limits on expenses to inflation starting in 2024. 5. Making the credit fully refundable for taxpayers with a principal place of abode in the United States for more than half of the taxable year. These changes aim to provide more financial assistance to families with the costs of child and dependent care.