Bill Text: IA HF227 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act creating exemptions from the computation of net income for the individual income tax of amounts paid to a child or dependent care provider, and including applicability provisions. (See HF 771.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-04-25 - Withdrawn. H.J. 1042. [HF227 Detail]

Download: Iowa-2019-HF227-Introduced.html
House File 227 - Introduced HOUSE FILE 227 BY BOSSMAN A BILL FOR An Act creating exemptions from the computation of net income 1 for the individual income tax of amounts paid to a child 2 or dependent care provider, and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1996YH (5) 88 jm/jh
H.F. 227 Section 1. Section 422.7, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6. a. Subtract child or dependent care 3 provider expenses, to the extent not otherwise deducted in 4 computing adjusted gross income. 5 b. For purposes of this subsection: 6 (1) “Child” and “dependent” both mean the same as a 7 qualifying individual as defined in section 21 of the Internal 8 Revenue Code. 9 (2) “Partner” means a person with whom another person 10 maintains a household and an intimate relationship, other than 11 persons legally married to each other. 12 c. This subsection does not apply unless the child or 13 dependent care provider expenses are reasonable and customary 14 for the services rendered, and the child or dependent care 15 provider is not the spouse, partner, or dependent child of the 16 taxpayer. 17 Sec. 2. APPLICABILITY. This Act applies to tax years 18 beginning on or after January 1, 2020. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill creates an exemption from the computation of net 23 income for the individual income tax of amounts paid to a 24 child or dependent care provider. A “child” and “dependent” 25 are defined to mean the same as a qualifying individual under 26 section 21 of the Internal Revenue Code, which includes a 27 dependent of the taxpayer who has not attained 13 years of age, 28 and other dependents who reside with the taxpayer and who are 29 unable to physically or mentally care for themselves. 30 The bill does not apply unless the child or dependent care 31 provider expenses are reasonable and customary for the services 32 rendered, and the child or dependent care provider is not the 33 spouse, partner, or dependent child of the taxpayer. The bill 34 defines “partner” to mean a person with whom another person 35 -1- LSB 1996YH (5) 88 jm/jh 1/ 2
H.F. 227 maintains a household and an intimate relationship, other than 1 persons legally married to each other. 2 Current law allows a person to qualify for a child and 3 dependent care tax credit under Code section 422.12C if the 4 taxpayer’s net income is less $45,000. 5 -2- LSB 1996YH (5) 88 jm/jh 2/ 2
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