The Trump administration plans to negotiate with lawmakers to prevent taxes from rising on some middle-class families by using child-care tax breaks, according to Mnuchin, who is Trumps Treasury Secretary. PLEASE TAKE NATIONAL POLLS AND PETITIONS. YOUR OPINION MATTERS Results Are Sent To Congress - Let Congress Hear Your Voice
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“When we work with Congress and go through this, it will be very clear. This is a middle-income tax cut. And the child-care credit is a big aspect of this,” he said.
Trump’s proposal for child-care tax deductions
During the campaign, Trump proposed allowing working parents to deduct from their income taxes child-care expenses for up to four children and elderly dependents.
For a family earning $70,000 annually in Trump’s proposed 12 percent tax bracket, with $7,000 in child-care expenses, the deduction would reduce taxes by $840 per year, his campaign estimated.
The deduction would be capped at the average cost of care for the state of residence. People earning more than $250,000 (or $500,000 for married couples filing jointly) would not be eligible.
The plan would also offer rebates to lower-income taxpayers through the existing Earned Income Tax Credit. The Trump campaign estimated a low-income family could save almost $1,200 per year.