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Bill > S931


US S931

US S931
Child and Dependent Care Tax Credit Enhancement Act of 2019


summary

Introduced
03/28/2019
In Committee
03/28/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to amend the Internal Revenue Code of 1986 to enhance the Child and Dependent Care Tax Credit and make the credit fully refundable. This bill modifies the tax credit for employment-related expenses incurred for the care of a taxpayer's dependent to (1) increase to $120,000, the adjusted gross income threshold level above which the credit is incrementally reduced; (2) increase the dollar limits on the allowable amount of the credit; (3) specify rules for married couples filing separate returns; (4) allow an inflation adjustment to the adjusted gross income threshold and the maximum credit amounts, beginning after 2020; and (5) make the credit refundable.

AI Summary

This bill enhances the Child and Dependent Care Tax Credit by: (1) increasing the adjusted gross income threshold above which the credit is reduced from $15,000 to $120,000; (2) increasing the maximum credit amounts from $3,000 to $6,000 for one qualifying individual and from $6,000 to $12,000 for two or more qualifying individuals; (3) allowing married couples filing separately to claim the credit based on their individual circumstances; (4) providing for inflation adjustments to the income threshold and credit amounts starting in 2021; and (5) making the credit fully refundable, meaning taxpayers can receive the full credit amount even if they do not owe any taxes.

Committee Categories

Budget and Finance

Sponsors (29)

Last Action

Read twice and referred to the Committee on Finance. (on 03/28/2019)

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