Dependent care assistance plan
Up to $7,500/employee
Can You Write Off Dependent Care Assistance Plan?
Short answer: Yes: employers can provide up to $7,500 a year of tax-free dependent care benefits starting in 2026 (up from $5,000).
The plan must be written and not favor highly paid employees.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00672
low risk
Dependent care assistance plan
Typical range: Up to $7,500/employee
General Business
Payroll & Labor
Business Write-Off Questions
Yes: employers can provide up to $7,500 a year of tax-free dependent care benefits starting in 2026 (up from $5,000).
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: employers can provide up to $7,500 a year of tax-free dependent care benefits starting in 2026 (up from $5,000). The plan must be written and not favor highly paid employees.
Category
- Business Write-Off Questions
business question
search demand 2026
compensation
benefits
obbba 2026