To amend the Internal Revenue Code to increase the exclusion for employer-provided dependent care assistance and to allow limited annual carryforward of unused dependent care flexible spending arrangement account balances.

Child and Dependent Care Modernization Act of 2018 This bill amends the Internal Revenue Code, with respect to employer-provided dependent care assistance programs, to: (1) increase the amounts of dependent care assistance that employees may exclude from gross income, (2) require the increased limits to be adjusted for inflation after 2019, and (3) allow certain unused dependent care flexible spending account balances to be carried forward into the next year.