I 
113TH CONGRESS 
2D SESSION 
H. R. 5365 
To amend the Internal Revenue Code of 1986 to provide an above-the- 
line 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ABOVE-THE-LINE DEDUCTION FOR CHILD CARE 
EXPENSES. 
(a) IN GENERAL.—Part VII of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1986 is amended— 
(1) by redesignating section 224 as section 225, 
and 
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(2) by inserting after section 223 the following 
new section: 
‘‘SEC. 224. CHILD CARE DEDUCTION. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
individual for which there are 1 or more qualifying chil-
dren with respect to such individual for the taxable year, 
there shall be allowed as a deduction an amount equal to 
the employment-related expenses paid by such individual 
during the taxable year. 
‘‘(b) DOLLAR LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount allowed as a 
deduction under subsection (a) with respect to the 
taxpayer for any taxable year shall not exceed— 
‘‘(A) $7,000, if there is 1 qualifying child 
with respect to the taxpayer for such taxable 
year, or 
‘‘(B) $14,000, if there are 2 or more quali-
fying children with respect to the taxpayer for 
such taxable year. 
‘‘(2) ADJUSTMENT
FOR
INFLATION.—In the 
case of a taxable year beginning after 2014, each of 
the dollar amounts in paragraph (1) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which such taxable year begins, deter-
mined by substituting ‘calendar year 2013’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the preceding sen-
tence is not a multiple of $100, such amount shall 
be rounded to the next highest multiple of $100. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 
child’ means a dependent of the taxpayer (as defined 
in section 152(a)(1))— 
‘‘(A) who has not attained age 13, or 
‘‘(B) who is physically or mentally incapa-
ble of caring for himself or herself. 
‘‘(2) EMPLOYMENT-RELATED EXPENSES.—The 
term ‘employment-related expenses’ has the meaning 
given such term by section 21(b)(2), applied as if 
the terms ‘qualifying child’ and ‘qualifying children,’ 
within the meaning of this section, were substituted 
for the terms ‘qualifying individual’ and ‘qualifying 
individuals’, respectively. 
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‘‘(3) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (1), (2), (3), (4), (5), (6), (9), 
and (10) of section 21(e) shall apply. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.— 
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed under this section for any expense with re-
spect to which a credit is claimed by the taxpayer 
under section 21. 
‘‘(2) COORDINATION RULE.—For coordination 
with a dependent care assistance program, see sec-
tion 129(e)(7).’’. 
(b) DEDUCTION ALLOWED ABOVE THE LINE.—Sub-
section (a) of section 62 of the Internal Revenue Code of 
1986 is amended by inserting after paragraph (21) the 
following new paragraph: 
‘‘(22) CHILD
CARE
DEDUCTION.—The deduc-
tion allowed by section 224.’’. 
(c) CONFORMING AMENDMENT.—Subsection (e) of 
section 213 of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘, or as a deduction under section 
224,’’ after ‘‘section 21’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 is amended by striking the item 
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relating to section 224 and by inserting the following new 
items: 
‘‘Sec. 224. Child care deduction. 
‘‘Sec. 225. Cross reference.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred in 
taxable years beginning after December 31, 2013. 
Æ 
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