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
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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
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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.
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