Employee Tax Benefits
Employee-based Child Care Options
Tax-Free Payments for Child Care
Businesses can set up Dependent Care Assistance Plans (DCAPs), which are flexible spending accounts, that enable employees to set aside up to $5,000 per year in pre-tax salary for child care expenses.
Federal Child and Dependent Care Tax Credit (CDCTC)
When employers send employees their W-2 at tax time, remind them if they have children for whom they pay for child care services, they are able to claim CDCTC.
VA Parent Child Care Expense Deduction
Virginia law allows a tax deduction for dependent care expenses based on expenses claimed under the federal child and dependent care tax credit (CDCTC). Families may only claim this deduction on their Virginia tax return if they were eligible to claim a credit for child and dependent care expenses on their federal return.
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Contact Child Care Aware of Virginia
Child Care Aware of Virginia offers free, personalized assistance to help parents find child care. Parents can search Child Care Aware of Virginia’s online database or contact Child Care Aware of Virginia’s Referral Specialist at 866-KIDS-TLC or Kay@vachildcare.com. Expert staff can help parents identify child care options based on family specific needs.