The Working Families Childcare Access Act of 2023 makes it easier for working parents to pay for their children's care and activities using pre-tax money. Right now, parents can set aside money in a special account (called a dependent care FSA) before taxes are taken out of their paycheck, but it only covers traditional childcare like daycare or babysitters. This bill expands what counts as eligible expenses to include sports programs, tutoring, and music or art lessons—things many families spend money on anyway. It also raises the age limit for who qualifies as a dependent from 13 to 15, so parents with older kids can finally use these accounts for their activities. The bill increases the maximum amount you can set aside from the current limit to $15,000 per year, giving families more flexibility. One important change is that if you don't use all the money in your account by the end of the year, you can now carry it forward to the next year instead of losing it—which solves a major frustration families have had with these accounts. Overall, this bill helps working parents save money on taxes while paying for a wider range of their children's activities and care needs.

WFCA Act of 2023

Miller, Carol D.

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.