State & Employee Tax Benefits
Idaho Employee-based Options
Federal Tax-Free Payments for Child Care
Federal Child and Dependent Care Tax Credit (CDCTC)
Idaho Child Care Expense Tax Deduction
When employers send employees their W-2 at tax time, remind them if they have children for whom they pay for child care services, employees can claim the CDCTC.
In April 2023, the Idaho state legislature increased the family child care tax deduction to $12,000. Remind families about this tax deduction when you send them their W-2 at tax time.
Businesses can set up Dependent Care Assistance Plans, which are flexible spending accounts, that enable employees to set aside up to $7,500 per year in pre-tax salary for child care expenses.
Contact IdahoSTARS
IdahoSTARS provides a fully coordinated statewide Child Care Resource Center (CCRC) network, with 7 regional offices, to help parents and to support child care providers. Parents can speak to a child care specialist directly and receive a list of child care providers meeting family priorities for care. Let parents know to call 2-1-1 to get in touch with a local Resource Specialist who can help.