I 

113TH CONGRESS 

2D SESSION H. R. 5365 

To amend the Internal Revenue Code of 1986 to provide an above-theline deduction for child care expenses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2014 

Mr. PASCRELL (for himself, Ms. LINDA T. SA ́NCHEZ of California, Ms. 

EDWARDS, Mr. CARTWRIGHT, and Mr. PETERS of California) introduced 

the following bill; which was referred to the Committee on Ways and 

Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

an above-the-line deduction for child care expenses, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. ABOVE-THE-LINE DEDUCTION FOR CHILD CARE 

4 EXPENSES. 

5 (a) IN GENERAL.—Part VII of subchapter A of chap6 ter 1 of the Internal Revenue Code of 1986 is amended— 

7 (1) by redesignating section 224 as section 225, 

8 and 


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1 (2) by inserting after section 223 the following 

2 new section: 

3 ‘‘SEC. 224. CHILD CARE DEDUCTION. 

4 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 

5 individual for which there are 1 or more qualifying chil6 dren with respect to such individual for the taxable year, 

7 there shall be allowed as a deduction an amount equal to 

8 the employment-related expenses paid by such individual 

9 during the taxable year. 

10 ‘‘(b) DOLLAR LIMITATIONS.— 

11 ‘‘(1) IN GENERAL.—The amount allowed as a 

12 deduction under subsection (a) with respect to the 

13 taxpayer for any taxable year shall not exceed— 

14 ‘‘(A) $7,000, if there is 1 qualifying child 

15 with respect to the taxpayer for such taxable 

16 year, or 

17 ‘‘(B) $14,000, if there are 2 or more quali18 fying children with respect to the taxpayer for 

19 such taxable year. 

20 ‘‘(2) ADJUSTMENT FOR INFLATION.—In the 

21 case of a taxable year beginning after 2014, each of 

22 the dollar amounts in paragraph (1) shall be in23 creased by an amount equal to— 

24 ‘‘(A) such dollar amount, multiplied by 


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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which such taxable year begins, deter4 mined by substituting ‘calendar year 2013’ for 

5 ‘calendar year 1992’ in subparagraph (B) 

6 thereof. 

7 If any amount as adjusted under the preceding sen8 tence is not a multiple of $100, such amount shall 

9 be rounded to the next highest multiple of $100. 

10 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur11 poses of this section— 

12 ‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 

13 child’ means a dependent of the taxpayer (as defined 

14 in section 152(a)(1))— 

15 ‘‘(A) who has not attained age 13, or 

16 ‘‘(B) who is physically or mentally incapa17 ble of caring for himself or herself. 

18 ‘‘(2) EMPLOYMENT-RELATED EXPENSES.—The 

19 term ‘employment-related expenses’ has the meaning 

20 given such term by section 21(b)(2), applied as if 

21 the terms ‘qualifying child’ and ‘qualifying children,’ 

22 within the meaning of this section, were substituted 

23 for the terms ‘qualifying individual’ and ‘qualifying 

24 individuals’, respectively. 


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1 ‘‘(3) SPECIAL RULES.—Rules similar to the 

2 rules of paragraphs (1), (2), (3), (4), (5), (6), (9), 

3 and (10) of section 21(e) shall apply. 

4 ‘‘(d) DENIAL OF DOUBLE BENEFIT.— 

5 ‘‘(1) IN GENERAL.—No deduction shall be al6 lowed under this section for any expense with re7 spect to which a credit is claimed by the taxpayer 

8 under section 21. 

9 ‘‘(2) COORDINATION RULE.—For coordination 

10 with a dependent care assistance program, see sec11 tion 129(e)(7).’’. 

12 (b) DEDUCTION ALLOWED ABOVE THE LINE.—Sub13 section (a) of section 62 of the Internal Revenue Code of 

14 1986 is amended by inserting after paragraph (21) the 

15 following new paragraph: 

16 ‘‘(22) CHILD CARE DEDUCTION.—The deduc17 tion allowed by section 224.’’. 

18 (c) CONFORMING AMENDMENT.—Subsection (e) of 

19 section 213 of the Internal Revenue Code of 1986 is 

20 amended by inserting ‘‘, or as a deduction under section 

21 224,’’ after ‘‘section 21’’. 

22 (d) CLERICAL AMENDMENT.—The table of sections 

23 for part VII of subchapter A of chapter 1 of the Internal 

24 Revenue Code of 1986 is amended by striking the item 


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1 relating to section 224 and by inserting the following new 

2 items: 

‘‘Sec. 224. Child care deduction. 

‘‘Sec. 225. Cross reference.’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to expenses paid or incurred in 

5 taxable years beginning after December 31, 2013. 

Æ 


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