Childcare Tax Deduction 2025. However, the deductions for personal and dependency exemptions for tax years 2018 through 2025 are suspended, and, therefore, the amount of the deduction is zero. The tax relief for american families and workers act of 2024 would incrementally raise the refundable portion cap of the child tax credit from $1,800 in 2023 to $2,000 in 2025.
The child and dependent care credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualifying persons). Here’s a breakdown of the ctc’s income limits and rules.