H. R. 833
IN THE HOUSE OF REPRESENTATIVES
February 4, 2021
Ms. Porter (for herself, Ms. Herrera Beutler, Mr. Lowenthal, Mr. Cole, and Ms. Norton) introduced the following bill; which was referred to the Committee on Ways and Means
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.
This Act may be cited as the
Family Savings for Kids and Seniors Act.
Increase in exclusion for employer-provided dependent care assistance including dependent care flexible spending arrangements
Increase To take into account inflation since 1986
Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
In the case of any taxable year beginning in a calendar year after 2021, the $5,000 amount in subparagraph (A) shall be increased by an amount equal to—
such dollar amount, multiplied by
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.
Section 129(a)(2)(A) of such Code is amended by striking
$2,500 and inserting
half such dollar amount.
The amendments made by this section shall apply to taxable years beginning after December 31, 2021.