Family Savings for Kids and Seniors Act

Bill: 118-hr-5036
Sponsor: full_name: Rep. Porter, Katie [D-CA-47]
Introduced: 2023-07-27
Policy area: Taxation
Latest action: action_date: 2023-07-27
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-07-27
action_desc: Introduced in House
text: <p><b>Family Savings for Kids and Seniors Act</b></p> <p>This bill provides an annual inflation adjustment after 2023 to the $5,000 tax exclusion for employer-provided dependent care assistance.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 5036 IN THE HOUSE OF REPRESENTATIVES July 27, 2023 Ms. Porter (for herself, Mrs. Hinson , Ms. Norton , Mrs. Kiggans of Virginia , and Mr. Cole ) 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 increase the exclusion for employer-provided dependent care assistance including the limitation on dependent care flexible spending arrangements.

1. Short title This Act may be cited as the Family Savings for Kids and Seniors Act . 2. Increase in exclusion for employer-provided dependent care assistance including dependent care flexible spending arrangements (a) Increase To take into account inflation since 1986 Section 129(a)(2)(D) of the Internal Revenue Code of 1986 is amended to read as follows: (D) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2023, the $5,000 amount 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 1986 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (b) Conforming amendment Section 129(a)(2)(A) of such Code is amended by striking $2,500 and inserting half such dollar amount . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023.