2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1005 - Computation of Taxable Income (§§ 30101 — 30157) › Subchapter B - Treatment of Certain Income Items (§§ 30111 — 30119) › § 30117 - Payment for dependent care

(a) General rule.— An employee who supports a household that includes one or more qualifying individuals (as defined in subsection (d) of this section), many exclude under § 30102(a)(2)(C) of this title the amounts paid or accrued by his/her employer to cover those expenses incurred by the employee that are related to the care of such qualifying individuals.
(b) Limitation of exclusion.—
(1) General rule.— The amount which may be excluded under subsection (a) shall not exceed three thousand dollars ($3,000) for one qualifying individual or six thousand dollars ($6,000) for two (2) or more qualifying individuals.
(2) Inclusion.— Any amount paid in excess to the limit established under clause (1) shall be included in gross income in the taxable year in which the dependent care services were provided (even if payment of dependent care assistance for such services occurs in a subsequent taxable year).
(c) Payments to related individuals.— No amount paid or incurred during the taxable year to an employee by an employer in providing dependent care to such employee shall be excluded under this section, if such amount was paid or incurred to an individual with respect to whom, for such taxable year, a deduction is allowable under § 30138(b) of this title.
(d) Definition of qualifying individual.— The term “qualifying individual” means:
(1) A dependent of the employee under the age of fourteen (14) and with respect to whom the employee is entitled to claim an exemption under § 30138(b) of this title;
(2) a dependent of the employee who is mentally or physically incapable of caring for him/herself, or
(3) the spouse of the employee, if mentally or physically incapable of caring for him/herself.
(e) Services rendered outside of the employee household.—
(1) General rule.— The expenses referred to in subsection (a) shall not include any amount paid for services rendered outside of the employee’s household.
(2) Exception.— Expenses related to the care of qualifying individuals, which are incurred for services outside the employee’s household shall be taken into account only if incurred for the care of:
(A) a qualifying individual described in subsection (d)(1), or
(B) a qualifying individual (not described in subsection (d)(1)) who regularly spends at least eight (8) hours each day in the employee’s household.
(3) Dependent care centers.— Employment-related expenses described in paragraph (A) which are incurred for services provided outside the taxpayer’s household by a dependent care center (as defined in paragraph (D)) shall be taken into account only if [sic]:
(A) Such center complies with all applicable laws and regulations, and
(B) the requirements of clause (2) are met.
(4) Definition of dependent care center.— For purposes of this subsection, the term “dependent care center” means any facility that:
(A) Provides care for more than six (6) individuals other than individuals who reside at the facility, and
(B) receives a fee, payment or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit).
(f) Special rules.— For purposes of this section
(1) Maintenance of a household.— An employee is considered to be as maintaining a household during any period only if the employee has furnished over one half of the cost incurred in maintaining such household during for such period (or, in the case the employee is married during the period, both the employee and his/her spouse furnish the cost of maintaining such household).
(2) No deduction shall be allowed for excluded amounts.— The employee shall not be allowed to claim any amount excluded from his/her gross income under this section, as a deduction under any other provision of this part.
(3) Treatment of facilities at place of employment.— In the case of facilities provided by the employer at the place of employment, the amount excludible for the care of qualifying individuals shall be based on:
(A) The use of the facility by the qualifying individual, and
(B) the value of the services provided with respect to the qualifying individual.
(4) Information required with respect to service provider.— No amount shall be excluded from the gross income of the employee in accordance with the provisions of this section unless the name, address, and employer identification number of the person to whom payment is made is included on the income tax return of the employee.
(5) Special rule in the case of divorced or separated parents.— If:
(A) Section 30138(e)(2) of this title, is applicable to any child with respect to any calendar year, and
(B) the child is under the age of fourteen (14), the custodial parent (as defined in § 30138(d)(1) of this title), may treat the child as a qualifying individual.
History —Jan. 31, 2011, No. 1, § 1032.07, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 23.