Tax Credit for Student Parents Act
Bill: H.R.9076 | Sponsor: Rep. Schrier, Kim (D-WA)
Policy area: Taxation

Summary:
Tax Credit for Student Parents Act
This bill expands the tax credit for expenses for household and dependent care services necessary for gainful employment to include education-related expenses for certain full-time students.

To amend the Internal Revenue Code of 1986 to allow parents pursuing a 
    higher education degree to take the tax credit for expenses for 
                 household and dependent care services.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Credit for Student Parents 
Act''.

SEC. 2. PART-TIME STUDENTS ALLOWED TO TAKE CREDIT FOR EXPENSES FOR 
              HOUSEHOLD AND DEPENDENT CARE SERVICES.

    (a) In General.--Section 21 of the Internal Revenue Code of 1986 is 
amended--
            (1) in the heading, by inserting ``or education'' after 
        ``gainful employment'',
            (2) by striking ``employment-related expenses'' each place 
        it appears and inserting ``employment- and education-related 
        expenses'', and
            (3) in subsection (b)(2)--
                    (A) in the heading, by striking ``employment-
                related expenses'' and inserting ``employment- and 
                education-related expenses'', and
                    (B) in subparagraph (A), by striking ``gainfully 
                employed'' and inserting ``gainfully employed or a 
                student''.
    (b) Rules Related to Students.--
            (1) Definition.--Section 21(e)(7) of such Code is amended 
        to read as follows:
            ``(7) Student.--The term `student' means an individual who 
        during each of 5 calendar months during the taxable year is 
        carrying at least \1/2\ the normal full-time work load for the 
        course of study such individual is pursuing at an educational 
        organization.''.
            (2) Special rule for students and individuals incapable of 
        caring for themselves.--Section 21(d)(2) of such Code is 
        amended to read as follows:
            ``(3) Special rule for students and individuals incapable 
        of caring for themselves.--For purposes of paragraph (1), if a 
        spouse is a student or a qualifying individual described in 
        subsection (b)(1)(C), or if an unmarried individual is a 
        student, such spouse or unmarried individual shall be deemed 
        for each month during which such spouse or unmarried individual 
        satisfies the \1/2\-time requirement of subsection (e)(7), or 
        during which such spouse is such a qualifying individual, to be 
        gainfully employed and to have earned income of not less than--
                    ``(A) $250 if subparagraph (c)(1) applies for the 
                taxable year, or
                    ``(B) $500 if subparagraph (c)(2) applies for the 
                taxable year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2022.
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