Making Care Less Taxing: Improving State Child and Dependent Care Tax Provisions

Nancy Duff Campbell, Amy K. Matsui Julie G. Vogtman, Anne W. King, National Women’s Law Center, April 2011.

“Paying for care for children or adult dependents takes a big bite out of many families’ already limited budgets.Yet without such care, married-couple and single-parent families alike have difficulty entering or remaining in the labor force. As a result, families across the country are caught in a bind: finding the financial resources to pay for the child and dependent care necessary for them to earn a living.The tax codes of the federal government and over half the states provide some assistance to families in meeting their employment-related care expenses. However, many states provide little or no tax assistance to families struggling to pay for the care that is so essential to their economic wellbeing. This report is designed to help state policy makers and advocates rectify this situation and assist them in developing the best child and dependent care (CADC) income tax provisions possible for their states.”