I 

117TH CONGRESS 

1ST SESSION H. R. 2714 

To amend the Internal Revenue Code of 1986 to allow for the inclusion 

of additional expenses in dependent care FSAs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2021 

Mrs. WALORSKI (for herself, Mrs. MILLER of West Virginia, Mr. REED, Mr. 

HERN, and Mr. WENSTRUP) 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 allow for 

the inclusion of additional expenses in dependent care 

FSAs, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Working Families 

5 Childcare Access Act of 2021’’ or the ‘‘WFCA Act of 

6 2021’’. 


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1 SEC. 2. ADDITIONAL EXPENSES INCLUDED IN DEPENDENT 

2 CARE ASSISTANCE PROGRAMS. 

3 (a) IN GENERAL.—Section 129(e) of the Internal 

4 Revenue Code of 1986 is amended— 

5 (1) in paragraph (1), by striking ‘‘or provision 

6 of, those’’ and inserting ‘‘or provision of, qualified 

7 adoption expenses (within the meaning of section 

8 137(d)), qualified sports expenses, qualified tutoring 

9 expenses, qualifying art expenses, or those’’, and 

10 (2) by adding at the end the following new 

11 paragraphs: 

12 ‘‘(10) QUALIFIED SPORTS EXPENSES.—The 

13 term ‘qualified sports expenses’ means expenses paid 

14 or incurred for the participation or instruction of a 

15 dependent in a program of physical exercise or phys16 ical activity. 

17 ‘‘(11) QUALIFIED TUTORING EXPENSES.—The 

18 term ‘qualified tutoring expenses’ means expenses 

19 paid or incurred for the participation or instruction 

20 of a dependent in virtual or in-person— 

21 ‘‘(A) individual academic tutoring, or 

22 ‘‘(B) small-group academic tutoring in a 

23 group of four students or fewer. 

24 ‘‘(12) QUALIFIED ART EXPENSES.—The term 

25 ‘qualified art expenses’ means expenses paid or inVerDate Sep 11 2014 23:47 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2714.IH H2714

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1 curred for the participation or instruction of a de2 pendent in a program of music or art.’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2021. 

6 SEC. 3. DEPENDENT CARE EXPENSES ALLOWED FOR CHIL7 DREN AND DEPENDENTS UP TO AGE 15. 

8 (a) IN GENERAL.—Section 129(e)(1) of the Internal 

9 Revenue Code of 1986, as amended by section 1, is 

10 amended— 

11 (1) by striking ‘‘or provision of, qualified adop12 tion expenses’’ and inserting ‘‘or provision of, with 

13 respect to a qualifying individual, qualified adoption 

14 expenses’’, 

15 (2) by striking ‘‘The term’’ and inserting the 

16 following: 

17 ‘‘(A) IN GENERAL.—The term’’, and 

18 (3) by adding at the end the following: 

19 ‘‘(B) SPECIAL RULE.—For purposes of 

20 subparagraph (A), the term ‘qualifying indi21 vidual’ has the meaning given in paragraph (1) 

22 of section 21(b), except such paragraph shall be 

23 applied by substituting ‘age 15’ for ‘age 13’.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2021. 

4 SEC. 4. CARRY FORWARD OF UNUSED BENEFITS. 

5 (a) IN GENERAL.—Section 129(d) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(10) BENEFIT CARRY FORWARD RULES.— 

9 ‘‘(A) IN GENERAL.—A plan meets the re10 quirements of this paragraph if it provides for 

11 the automatic carry forward from the close of 

12 a plan year to the succeeding plan year of any 

13 aggregate unused contributions totaling $20 or 

14 greater. 

15 ‘‘(B) SMALL BALANCES.—For purposes of 

16 subparagraph (A), if an eligible employee car17 ries a balance of less than $20 at the end of a 

18 plan year, such employee may elect to carry for19 ward such balance to the next plan year or, if 

20 such employee makes no election, such balance 

21 may be forfeited. 

22 ‘‘(C) EXCLUSION FROM GROSS INCOME.— 

23 No amount shall be included in gross income 

24 under this chapter by reason of any carry for25 ward under this paragraph. 


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1 ‘‘(D) COORDINATION LIMITS.—The max2 imum amount which may be contributed to a 

3 dependent care assistance flexible spending ar4 rangement for any year to which an unused 

5 amount is carried under this paragraph shall 

6 not be reduced by such unused amount.’’. 

7 (b) CONFORMING AMENDMENT.—Section 125(d)(2) 

8 of such Code is amended by adding at the end the fol9 lowing new subparagraph: 

10 ‘‘(E) EXCEPTION FOR DEPENDENT CARE

11 ASSISTANCE FLEXIBLE SPENDING ARRANGE12 MENTS.—Subparagraph (A) shall not apply to a 

13 dependent care assistance flexible spending ar14 rangement which conforms to the benefit carry 

15 forward rules of section 129(d)(10).’’. 

16 (c) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2021. 

19 SEC. 5. INCREASE OF BENEFITS FOR DEPENDENT CARE AS20 SISTANCE PROGRAMS. 

21 (a) IN GENERAL.—Section 129(a)(2)(A) of the Inter22 nal Revenue Code of 1986 is amended by striking ‘‘$5,000 

23 ($2,500’’ and inserting ‘‘$15,000 ($7,500’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2021. 

Æ 


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