Details of Public Law 117-2, section 9632 , Increase in Exclusion for Employer-Provided Dependent Care Assistance

For taxable year 2021, the section temporarily increases the amount of the exclusion from gross income for employer-provided dependent care assistance. The section increases such amount from $5,000 to $10,500 (and half of such dollar amount in the case of a separate return by a married individual).

Under certain conditions, the section also provides that a plan that otherwise satisfies the requirements of a dependent care assistance program or cafeteria plan shall not fail to meet those requirements if the plan is amended to satisfy this section and such amendment is retroactive if specified requirements are met.