Us Congress 2023-2024 Regular Session

Us Congress House Bill HB478

Introduced
1/24/23  

Caption

Working Families Childcare Access Act of 2023 or the WFCA Act of 2023 This bill includes certain additional expenses in a dependent care flexible spending arrangement (FSA), specifically qualified sports, tutoring, and music or art expenses. It also increases the eligibility age for dependent care benefits to 15, allows a carry forward of unused benefits to the next plan year, and increases to $15,000 the maximum amount of dependent care benefits excludible from employee gross income.

Impact

If passed, this legislation will have a considerable impact on how parents and guardians manage childcare-related expenses. The increase in the maximum tax-excludable amount for dependent care benefits to $15,000 could offer significant financial relief for families. Furthermore, allowing carry forward of unused contributions from one plan year to the next ensures that parents can optimize their benefits without losing unspent money at the end of the plan year. This flexibility is expected to resonate positively with many families facing rising childcare costs.

Summary

House Bill 478, also known as the Working Families Childcare Access Act of 2023, aims to expand the allowable expenses that can be covered under dependent care flexible spending arrangements (FSAs). This bill introduces provisions to include qualified expenses for sports, tutoring, and art or music programs, thereby broadening the types of educational and recreational activities eligible for tax benefits. Additionally, the bill raises the eligibility age for dependents from 13 to 15 years, allowing families with older children to benefit from these provisions.

Contention

While the bill presents a supportive framework for working families, it may face some debate regarding the overall financial implications for the federal budget and tax revenue. Critics may worry that expanding the scope of covered expenses and increasing the limits for excludable amounts could lead to a reduction in federal revenues. Additionally, there might be discussions on ensuring that these enhanced benefits are adequately targeted to those who need them most, rather than benefitting higher-income families disproportionately.

Companion Bills

US HB1421

Related bill Improving Child Care for Working Families Act of 2023

Previously Filed As

US HB313

Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.

US HB312

Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.

US S4028

Expands eligibility for State gross income tax credit for child and dependent care expenses and increases amount of credit.

US S1482

Expands eligibility for State gross income tax credit for child and dependent care expenses and increases amount of credit.

US HB1426

To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.

US HB109

This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.

US HB2022

Schools; Larry Dickerson Education Flexible Benefits Allowance Act; providing appropriation for flexible benefit allowance to include school employee dependents; effective date.

US HB2022

Schools; Larry Dickerson Education Flexible Benefits Allowance Act; providing appropriation for flexible benefit allowance to include school employee dependents; effective date.

US HB107

Freedom for Families Act This bill modifies requirements for health savings accounts (HSAs) to (1) exclude from gross income HSA distributions paid or distributed during a period of qualified caregiving, (2) allow participation in an HSA without enrollment in a high deductible health plan, and (3) increase the contribution limit for HSAs.

US SB5412

The Dependent Care Flexible Spending Account Expansion Act

Similar Bills

No similar bills found.