Title: Tax Relief for Families Suffering from Government-Mandated Shutdowns Act
Policy area: Taxation

Summary:
Tax Relief for Families Suffering from Government-Mandated Shutdowns Act
This bill revises the tax treatment of certain business-related tax deductions and allows new deductions for dependent care expenses, elementary and secondary school expenses, and for expenses incurred in 2020 for internet access.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4488 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4488

  To amend the Internal Revenue Code of 1986 to allow deductions for 
unreimbursed business expenses, dependent care expenses, and elementary 
           school education expenses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 6, 2020

   Mr. Paul introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow deductions for 
unreimbursed business expenses, dependent care expenses, and elementary 
           school education expenses, and for other purposes.

    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 Relief for Families Suffering 
from Government-Mandated Shutdowns Act''.

SEC. 2. TREATMENT OF DEDUCTION FOR CERTAIN BUSINESS EXPENSES.

    (a) In General.--Section 62(a)(1) of the Internal Revenue Code of 
1986 is amended by striking ``, if such trade or business does not 
consist of the performance of services by the taxpayer as an 
employee''.
    (b) Conforming Amendments.--
            (1) Section 62 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in subsection (a), by striking paragraph (2), 
                and
                    (B) by striking subsections (b), (c), and (d) and 
                redesignating subsections (e) and (f) as subsections 
                (c) and (d), respectively.
            (2) Section 162(o) of such Code is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``such services'' and all 
                        that follows through ``allowable as a 
                        deduction'' and inserting ``such services, the 
                        amount allowable as a deduction'',
                            (ii) by striking ``; and'' and inserting a 
                        period, and
                            (iii) by striking subparagraph (B), and
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 3. DEDUCTION FOR CHILD AND DEPENDENT CARE EXPENSES.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY FOR GAINFUL 
              EMPLOYMENT.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the employment-related 
expenses (as defined in section 21(b)(2)) paid by such individual 
during the taxable year.
    ``(b) Coordination With Other Benefits.--For purposes of subsection 
(a), there shall not be taken into account any expenses--
            ``(1) which were excluded from gross income under section 
        129 for the taxable year, or
            ``(2) which were taken into account in determining the 
        amount of the credit allowed under section 21 for the taxable 
        year.''.
    (b) Treatment of Deduction.--Section 62(a) of the Internal Revenue 
Code of 1986 is amended by inserting after paragraph (22) the following 
new paragraph:
            ``(23) Household and dependent care services.--The 
        deduction under section 224.''.
    (c) Election With Respect to Credit.--Section 21(e) of such Code is 
amended by adding at the end the following new paragraph:
            ``(11) Election to disregard expenditures.--Under such 
        rules, and in such form and manner, as the Secretary may 
        provide, a taxpayer may elect not to have this section apply 
        with respect to any amount of employment-related expenses 
        determined by the taxpayer.''.
    (d) Clerical Amendment.--The table of section 3 for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as relating to section 225 and by 
inserting after the item relating to section 223 the following new 
item:

``Sec. 224. Household and dependent care services necessary for gainful 
                            employment.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 4. DEDUCTION FOR ELEMENTARY AND SECONDARY SCHOOL EXPENSES.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986, as amended by section 3, is amended by 
redesignating section 225 as section 226 and by inserting after section 
224 the following new section:

``SEC. 225. ELEMENTARY AND SECONDARY SCHOOL EXPENSES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the sum of--
            ``(1) the eligible elementary and secondary school tuition 
        and related expenses paid by such individual during the taxable 
        year, plus
            ``(2) so much of the eligible elementary and secondary 
        qualified expenses paid by such individual during the taxable 
        year as does not exceed $1,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible elementary and secondary school tuition and 
        related expenses.--The term `eligible elementary and secondary 
        school tuition and related expenses' means, with respect to any 
        dependent of the taxpayer--
                    ``(A) expenses for tuition, fees, academic 
                tutoring, special needs services in the case of a 
                special needs individual, which are incurred in 
                connection with the enrollment or attendance of such 
                dependent of the taxpayer as an elementary or secondary 
                school student at a public, private, or religious 
                school, and
                    ``(B) expenses for room and board, uniforms, 
                transportation, and supplementary items and services 
                (including extended day programs) which are required or 
                provided by a public, private, or religious school in 
                connection with such enrollment or attendance.
            ``(2) Eligible elementary and secondary qualified 
        expenses.--The term `eligible elementary and secondary 
        qualified expenses' means, with respect to any dependent of the 
        taxpayer--
                    ``(A) expenses for books, supplies, and other 
                equipment which are incurred in connection with the 
                enrollment or attendance of such dependent as an 
                elementary or secondary school student at a public, 
                private, or religious school, and
                    ``(B) expenses for the purchase of any computer 
                technology or equipment or internet access and related 
                services, if such technology, equipment, or services 
                are to be used by such dependent or the taxpayer, the 
                taxpayer's spouse, or any other dependent of the 
                taxpayer during any of the years such dependent is in 
                school.
            ``(3) School.--The term `school' means any school 
        (including a homeschool) which provides elementary education or 
        secondary education (kindergarten through grade 12), as 
        determined under State law.
            ``(4) Computer technology or equipment.--The term `computer 
        technology or equipment' means computer software (as defined by 
        section 197(e)(3)(B)), computer or peripheral equipment (as 
        defined by section 168(i)(2)(B)), and fiber optic cable related 
        to computer use.
    ``(c) Coordination With Other Benefits.--For purposes of subsection 
(a), there shall not be taken into account any expenses which are not 
included in income under section 529 or 530.''.
    (b) Treatment of Deduction.--Section 62(a) of the Internal Revenue 
Code of 1986, as amended by section 3, is amended by inserting after 
paragraph (23) the following new paragraph:
            ``(24) Elementary and secondary school expenses.--The 
        deduction under section 225.''.
    (c) Clerical Amendment.--The table of section 3 for part VII of 
subchapter B of chapter 1 of such Code, as amended by section 3, is 
amended by redesignating the item relating to section 225 as relating 
to section 226 and by inserting after the item relating to section 224 
the following new item:

``Sec. 225. Elementary and secondary school expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 5. DEDUCTION FOR CERTAIN INTERNET EXPENSES IN 2020.

    (a) In General.--Section 62(a) of the Internal Revenue Code of 
1986, as amended by sections 3 and 4, is amended by inserting after 
paragraph (24) the following new paragraph:
            ``(25) Internet expenses.--In the case of taxable years 
        beginning in 2020, the amount (not to exceed $500) of expenses 
        paid or incurred for access to the internet (including data 
        charges).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.
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