Gov. Tony Evers signed Assembly Bill (AB) 1023, now 2023 Wisconsin Act 101, which expands the current child and dependent care tax credit to help reduce the tax burden for families struggling to afford the high cost of child care and care for adult dependents, according to a press release today. Act 101 provides tax relief to over 110,000 Wisconsin taxpayers at an average benefit of over $656 per filer.
AB 1023, now 2023 Wisconsin Act 101:
- Expands the current law nonrefundable child and dependent care tax credit from 50% of the federal credit to 100%;
- Increases the maximum qualifying expenses that may be claimed for one qualifying individual from $3,000 to $10,000 and for two or more qualifying individuals from $6,000 to $20,000; and
- Applies for tax year 2024 and would reduce individual income tax receipts by an estimated $72.9 million annually.
