Child Care Flex Spending Act of 2013

Bill: 113-s-1713
Sponsor: full_name: Sen. Murphy, Christopher [D-CT]
Introduced: 2013-11-14
Policy area: Taxation
Subjects: Adult day care

Child care and development

Employee benefits and pensions

Income tax exclusion

Inflation and prices
Latest action: action_date: 2013-11-14
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2013-11-14
action_desc: Introduced in Senate
text: <p>Child Care Flex Spending Act of 2013 - Amends the Internal Revenue Code to increase from $5,000 to $10,000 the limitation on the tax exclusion for employer-provided dependent care assistance for taxpayers whose modified adjusted gross income is less than $100,000. Provides for an annual inflation adjustment beginning after 2014 for the increased limitation amount and the modified adjusted gross income amount. </p>

tv_txt: II 113th CONGRESS 1st Session S. 1713 IN THE SENATE OF THE UNITED STATES November 14, 2013 Mr. Murphy 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 increase the dollar limitation on the exclusion for employer-provided dependent care assistance.

1. Short title This Act may be cited as the Child Care Flex Spending Act of 2013 . 2. Increase in dollar limitation on exclusion for employer-provided dependent care assistance (a) In general Subparagraph (A) of section 129(a)(2) of the Internal Revenue Code of 1986 is amended by striking shall not exceed and all that follows and inserting the following: shall not exceed— (i) in the case of a taxpayer whose modified adjusted gross income for such taxable year is less than $100,000 (twice such amount in the case of a joint return), $10,000 (half such amount in the case of a separate return by a married individual), and (ii) in any other case, $5,000 (half such amount in the case of a separate return by a married individual). . (b) Modified adjusted gross income Paragraph (2) of section 129(a) of such Code is amended by adding at the end the following new subparagraph: (D) Modified adjusted gross income For purposes of this paragraph, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. . (c) Inflation adjustment Paragraph (2) of section 129(a) of such Code, as amended by subsection (b), is amended by adding at the end the following new subparagraph: (E) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2014, each dollar amount contained in subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2013 for calendar year 1992 in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013.