Child Care Credit
The amount of expenses eligible for the child care credit has remained the same for a number of years. Starting in 2003, working parents will get the benefit of more generous allowances:

• The cap on eligible expenses will be increased to $6,000 per year from the current $4,800 cap. The cap will be $3,000 per year if there is only one qualifying dependent.

• The credit rate is increasing, to 35%, from the current rate of 30%.

• The credit phaseout (a reduction in the credit rate as adjusted gross income increases) will begin at $15,000, rather than the current threshold of $10,000.