Originally posted here on March 30, 2016.
The International Nanny Association is pleased that President Obama’s proposed 2017 Federal Budget includes proposals that positively assist families with child care expenses.
According to the Economic Policy Institute, in 33 states and the District of Columbia, infant care costs exceed the average cost of in-state college tuition at public 4-year institutions.
The International Nanny Association (INA) supports all efforts in our tax code to make quality child care more affordable for working parents.
The budget proposals:
- Eliminate the dependent-care FSA which allows a family to set aside $5000 per year on a pre-tax basis to pay for child care;
- Triple the maximum Child and Dependent Care Tax Credit and increase the income level where the tax credit phase out starts from $15,000 to $120,000 to expand middle class coverage; and
- Create a larger credit for taxpayers with children younger than 5.
The proposed 2017 federal budget is being reviewed in the US House of Representatives Budget Committee,the US Senate Budget Committee, and being scored by the Congressional Budget Office.
The INA encourages all members to contact individuals on the Budget Committees and express your support for the President’s proposals to assist families with child care expenses.
Some key points to consider:
- The Child and Dependent Care Tax Credit maximum credit of $1200 for a family with 2 children and income over $28,000 a year has not changed since 2003. The President’s proposal is in line with the rising cost of child care.
- The Child and Dependent Care Tax Credit has never been indexed to inflation – this would be the perfect opportunity to do so.
The International Nanny Association is the authority on in-home child care. INA, a non-profit organization, serves as the umbrella association for the in-home child care industry by providing information and education to the public and to industry professionals. INA is the only free-standing association that offers a credential exam for nannies. For more information, please visit our website: www.nanny.org or contact us by calling 1-888-878-1477.