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Internal Revenue Code, § 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment

I.R.C. § 21(a) Allowance Of Credit
I.R.C. § 21(a)(1) In General
In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by such individual during the taxable year.
I.R.C. § 21(a)(2) Applicable Percentage Defined
For purposes of paragraph (1), the term “applicable percentage” means 35 percent reduced (but not below 20 percent) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds $15,000.
I.R.C. § 21(b) Definitions Of Qualifying Individual And Employment-Related Expenses
For purposes of this section—
I.R.C. § 21(b)(1) Qualifying Individual
The term “qualifying individual” means—
I.R.C. § 21(b)(1)(A)
a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13,
I.R.C. § 21(b)(1)(B)
a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or
I.R.C. § 21(b)(1)(C)
the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year.
I.R.C. § 21(b)(2) Employment-Related Expenses
I.R.C. § 21(b)(2)(A) In General
The term “employment-related expenses” means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the taxpayer:
I.R.C. § 21(b)(2)(A)(i)
expenses for household services, and
I.R.C. § 21(b)(2)(A)(ii)
expenses for the care of a qualifying individual.
Such term shall not include any amount paid for services outside the taxpayer's household at a camp where the qualifying individual stays overnight.
I.R.C. § 21(b)(2)(B) Exception
Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of—
I.R.C. § 21(b)(2)(B)(i)
a qualifying individual described in paragraph (1)(A), or
I.R.C. § 21(b)(2)(B)(ii)
a qualifying individual (not described in paragraph (1)(A)) who regularly spends at least 8 hours each day in the taxpayer's household.
I.R.C. § 21(b)(2)(C) Dependent Care Centers
Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer's household by a dependent care center (as defined in subparagraph (D)) shall be taken into account only if—
I.R.C. § 21(b)(2)(C)(i)
such center complies with all applicable laws and regulations of a State or unit of local government, and
I.R.C. § 21(b)(2)(C)(ii)
the requirements of subparagraph (B) are met.
I.R.C. § 21(b)(2)(D) Dependent Care Center Defined
For purposes of this paragraph, the term “dependent care center” means any facility which—
I.R.C. § 21(b)(2)(D)(i)
provides care for more than six individuals (other than individuals who reside at the facility), and
I.R.C. § 21(b)(2)(D)(ii)
receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit).
I.R.C. § 21(c) Dollar Limit On Amount Creditable
The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed—
I.R.C. § 21(c)(1)
$3,000 if there is 1 qualifying individual with respect to the taxpayer for such taxable year, or
I.R.C. § 21(c)(2)
$6,000 if there are 2 or more qualifying individuals with respect to the taxpayer for such taxable year.
The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 for the taxable year.
I.R.C. § 21(d) Earned Income Limitation
I.R.C. § 21(d)(1) In General
Except as otherwise provided in this subsection, the amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed—
I.R.C. § 21(d)(1)(A)
in the case of an individual who is not married at the close of such year, such individual's earned income for such year, or
I.R.C. § 21(d)(1)(B)
in the case of an individual who is married at the close of such year, the lesser of such individual's earned income or the earned income of his spouse for such year.
I.R.C. § 21(d)(2) Special Rule For Spouse Who Is A Student Or Incapable Of Caring For Himself
In the case of a spouse who is a student or a qualifying individual described in subsection (b)(1)(C), for purposes of paragraph (1), such spouse shall be deemed for each month during which such spouse is a full-time student at an educational institution, or is such a qualifying individual, to be gainfully employed and to have earned income of not less than—
I.R.C. § 21(d)(2)(A)
$250 if subsection (c)(1) applies for the taxable year, or
I.R.C. § 21(d)(2)(B)
$500 if subsection (c)(2) applies for the taxable year.
In the case of any husband and wife, this paragraph shall apply with respect to only one spouse for any one month.
I.R.C. § 21(e) Special Rules
For purposes of this section—
I.R.C. § 21(e)(1) Place Of Abode
An individual shall not be treated as having the same principal place of abode of the taxpayer if at any time during the taxable year of the taxpayer the relationship between the individual and the taxpayer is in violation of local law.
I.R.C. § 21(e)(2) Married Couples Must File Joint Return
If the taxpayer is married at the close of the taxable year, the credit shall be allowed under subsection (a) only if the taxpayer and his spouse file a joint return for the taxable year.
I.R.C. § 21(e)(3) Marital Status
An individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married.
I.R.C. § 21(e)(4) Certain Married Individuals Living Apart
If—
I.R.C. § 21(e)(4)(A)
an individual who is married and who files a separate return—
I.R.C. § 21(e)(4)(A)(i)
maintains as his home a household which constitutes for more than one-half of the taxable year the principal place of abode of a qualifying individual, and
I.R.C. § 21(e)(4)(A)(ii)
furnishes over half of the cost of maintaining such household during the taxable year, and
I.R.C. § 21(e)(4)(B)
during the last 6 months of such taxable year such individual's spouse is not a member of such household, such individual shall not be considered as married.
I.R.C. § 21(e)(5) Special Dependency Test In Case Of Divorced Parents, Etc.
If—
I.R.C. § 21(e)(5)(A)
section 152(e) applies to any child with respect to any calendar year, and
I.R.C. § 21(e)(5)(B)
such child is under the age of 13 or is physically or mentally incapable of caring for himself, in the case of any taxable year beginning in such calendar year,
such child shall be treated as a qualifying individual described in subparagraph (A) or (B) of subsection (b)(1) (whichever is appropriate) with respect to the custodial parent (as defined in section 152(e)(4)(A)), and shall not be treated as a qualifying individual with respect to the noncustodial parent.
I.R.C. § 21(e)(6) Payments To Related Individuals
No credit shall be allowed under subsection (a) for any amount paid by the taxpayer to an individual—
I.R.C. § 21(e)(6)(A)
with respect to whom, for the taxable year, a deduction under section 151(c) (relating to deduction for personal exemptions for dependents) is allowable either to the taxpayer or his spouse, or
I.R.C. § 21(e)(6)(B)
who is a child of the taxpayer (within the meaning of section 152(f)(1)) who has not attained the age of 19 at the close of the taxable year.
For purposes of this paragraph, the term “taxable year” means the taxable year of the taxpayer in which the service is performed.
I.R.C. § 21(e)(7) Student
The term “student” means an individual who during each of 5 calendar months during the taxable year is a full-time student at an educational organization.
I.R.C. § 21(e)(8) Educational Organization
The term “educational organization” means an educational organization described in section 170(b)(1)(A)(ii).
I.R.C. § 21(e)(9) Identifying Information Required With Respect To Service Provider
No credit shall be allowed under subsection (a) for any amount paid to any person unless—
I.R.C. § 21(e)(9)(A)
the name, address, and taxpayer identification number of such person are included on the return claiming the credit, or
I.R.C. § 21(e)(9)(B)
if such person is an organization described in section 501(c)(3) and exempt from tax under section 501(a), the name and address of such person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence, the preceding sentence shall not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information so required.
I.R.C. § 21(e)(10) Identifying Information Required With Respect To Qualifying Individuals
No credit shall be allowed under this section with respect to any qualifying individual unless the TIN of such individual is included on the return claiming the credit.
I.R.C. § 21(f) Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.
(Added by Pub. L. 94-455, title V, Sec. 504(a)(1), Oct. 4, 1976, 90 Stat. 1563, Sec. 44A, and amended Pub. L. 95-600, title I, Sec. 121(a), Nov. 6, 1978, 92 Stat. 2779; Pub. L. 97-34, title I Sec. 124 (a)-(d), Aug. 13, 1981, 95 Stat. 197, 198; Pub. L. 98-21, title I, Sec. 122(c)(1), Apr. 20, 1983, 97 Stat. 87; renumbered Sec. 21 and amended Pub. L. 98-369, div. A, title IV, Sec. 423(c)(4), 471(c), 474(c), July 18, 1984, 98 Stat. 801, 826, 830; Pub. L. 99-514, title I, Sec. 104(b)(1), Oct. 22, 1986, 100 Stat. 2104; Pub. L. 100-203, title X, Sec. 10101(a), Dec. 22, 1987, 101 Stat. 1330-384; Pub. L. 100-485, title VII, Sec. 703(a)-(c)(1), Oct. 13, 1988, 102 Stat. 2426, 2427; Pub. L. 104-188, title 1, Sec. 1615, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 107-16, title II, Sec. 202, 204, June 7, 2001, 115 Stat. 38; Pub. L. 107-147, title IV, Sec. 418(b), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-311, title II, Sec. 203, 207, Oct. 4, 2004, 118 Stat. 1166; Pub. L. 109-135, title IV, Sec. 404(b), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 110-172, Sec. 11(a)(1), Dec. 29, 2007, 121 Stat. 2473.)
BACKGROUND NOTES
AMENDMENTS TO PART IV
1984--Pub. L. 98-369, div. A, title IV, Sec. 471(a), 474(n)(3), July 18, 1984, 98 Stat. 825, 834, substituted “Nonrefundable personal credits” for “Credits allowable” in item for subpart A, “Foreign tax credit, etc” for “Rules for computing credit for investment in certain depreciable property" in item for subpart B, “Refundable credits” for “Rules for computing credit for expense of work incentive programs” in item for subpart C, and “Business-related credits” for “Rules for computing credit for employment of certain new employees” in item for subpart D, and added items for subparts E and F.
1977--Pub. L. 95-30, title II, Sec. 202(d)(1)(B), May 23, 1977, 91 Stat. 147, added subpart D.
1971--Pub. L. 92-178, title VI, Sec. 601(c)(1), Dec. 10, 1971, 85 Stat. 557, added subpart C.
AMENDMENTS TO SUBPART
1986--Pub. L. 99-514, title I, Sec. 112(b)(5), Oct. 22, 1986, 100 Stat. 2109, struck out item 24 “Contributions to candidates for public office”.
1984--Pub. L. 98-369, div. A, title IV, Sec. 471(b), 612(f), July 18, 1984, 98 Stat. 826, 913, substituted “Nonrefundable Personal Credits” for “Credits Allowable" as subpart A heading, struck out analysis of sections 31 through 45 formerly comprising subpart A, and inserted a new analysis of sections consisting of items 21 (formerly 44A), 22 (formerly 37), 23 (formerly 44C), 24 (formerly 41), and 25 and 26 (newly enacted).
1983--Pub. L. 98-67 repealed amendments made by Pub. L. 97-248. See 1982 Amendment note below.
Pub. L. 98-21, Sec 122(c)(1), title I, Sec. 122(c)(7), Apr. 20, 1983, 97 Stat. 87, inserted “and the permanently and totally disabled" to item 37.
Pub. L. 97-424, title V, Sec. 515(b)(6)(D), Jan. 6, 1983, 96 Stat. 2181, substituted “and special fuels” for “,special fuels, and lubricating oil” after “gasoline” in item 39.
Pub. L. 97-414, Sec. 4(c)(1), Jan. 4, 1983, 96 Stat. 2056, added item 44H.
1982--Pub. L. 97-248, title III, Sec. 307(b)(3), 308(a), Sept. 3, 1982, 96 Stat. 590, 591, provided that, applicable to payments of interest, dividends, and partonage dividends paid or credited after June 30, 1983, item 31 is amended to read “Tax withheld on wages, interest, dividends, and patronage dividends”. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (301-308) of title III of Pub. L. 97-248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
1981--Pub. L. 97-34, title II, Sec. 221(c)(2), title III, Sec. 331(e)(2), Aug. 13, 1981, 95 Stat. 247, 295, added items 44F and 44G.
1980--Pub. L. 96-223, title II, Sec. 231(b)(1), Sec. 232(b)(3)(B), Apr. 2, 1980, 94 Stat. 272, 276, added items 44D and 44E.
1978--Pub. L. 95-618, title I, Sec. 101(b)(1), Nov. 9, 1978, 92 Stat. 3179, added item 44C.
1977--Pub. L. 95-30, title I, Sec. 101(e)(1), title II, Sec. 202(d)(1)(A), May 23, 1977, 91 Stat. 134, 147, added item 44B and struck out item 36 “Credit not allowed to individuals taking standard deduction”.
1976--Pub. L. 94-455, title IV, Sec. 401(a)(2)(D), title V, Sec. 501(c)(2), 503(b)(5), 504(a)(2), title XIX, 1901(b)(1)(Z), Oct. 4, 1976, 90 Stat. 1555, 1559, 1562, 1565, 1792, substituted in item 42 “General tax credit” for “Taxable income credit”, struck out in item 36 “pay optional tax or”, inserted in item 33 “possession tax credit”, substituted in item 37 “Credit of the elderly” for “Retirement income”, added item 44A, and struck out item 35 “Partially tax-exempt interest received by individuals”.
1975--Pub. L. 94-164, Sec. 3(a)(2), Dec. 23, 1975, 89 Stat. 973, substituted “Taxable income credit” for “Credit for personal exemptions” in item 42.
Pub. L. 94-12, title II, Sec. 203(b)(1), 204(c), 208(d)(1), Mar. 29, 1975, 89 Stat. 30, 32, 35, renumbered item 42 as 45 and added item 42 applicable to taxable years ending after Dec. 31, 1974, but to cease to apply to taxable years ending after Dec. 31, 1975, item 43 applicable to taxable years beginning after Dec. 31, 1974, but before Jan. 1, 1976, and item 44.
1971--Pub. L. 92-178, title VI, Sec. 601(c)(2), Dec. 10, 1971, 85 Stat. 557, added items 40 and 41, and redesignated former item 40 as 42.
1970--Pub. L. 91-258, title II, Sec. 207(d)(10), May 21, 1970, 84 Stat. 249, inserted “, special fuels,” after “gasoline” in item 39.
1965--Pub. L. 89-44, title VIII, Sec. 809(d)(1), June 21, 1965, 79 Stat. 167, added item 39 and redesignated former item 39 as 40.
1964--Pub. L. 88-272, title II, Sec. 201(d)(1), Feb. 26, 1964, 78 Stat. 32, struck out item 34.
1962--Pub. L. 87-834, Sec. 2(g)(1), (2), Oct. 16, 1962, 76 Stat. 972, 973, added headings of subparts A and B and item 38, and redesignated former item 38 as 39.
PRIOR PROVISIONS
A prior section 21 was renumbered section 15 of this title.
AMENDMENTS
2007 - Subsec. (e)(5). Pub. L. 110-172, Sec. 11(a)(1), amended par. (5) by substituting “section 152(e)(4)(A)” for “section 152(e)(3)(A)” in the flush language following subpar. (B).
2005 - Subsec. (b)(1)(B). Pub. L. 109-135, Sec. 404(b), amended subpar. (B) by inserting “(as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B))” after “dependent of the taxpayer”.
2004 - Subsec. (a)(1). Pub. L. 108-311, Sec. 203(a), amended par. (1) by substituting “In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual” for “In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1))”.
Subsec. 21(b)(1). Pub. L. 108-311, Sec. 203(b), amended par. (1). Before amendment it read as follows:
“(1) Qualifying individual
The term “qualifying individual” means--
“(A) a dependent of the taxpayer who is under the age of 13 and with respect to whom the taxpayer is entitled to a deduction under section 151(c),
“(B) a dependent of the taxpayer who is physically or mentally incapable of caring for himself, or
“(C) the spouse of the taxpayer, if he is physically or mentally incapable of caring for himself.”
Subsec. (e)(1). Pub. L. 108-311, Sec. 203(c), amended par. (1). Before amendment it read as follows:
“(1) Maintaining household
An individual shall be treated as maintaining a household for any period only if over half the cost of maintaining the household for such period is furnished by such individual (or, if such individual is married during such period, is furnished by such individual and his spouse).”
Subsec. (e)(5). Pub. L. 108-311, Sec. 207(2), amended par. (5) by striking “paragraph (2) or (4) thereof” before “section 152(e)” in subpar. (A) and by substituting “as defined in section 152(e)(3)(A)” for “within the meaning of section 152(e)(1)”.
Subsec. (e)(6)(B). Pub. L. 108-311, Sec. 207(3), amended subpar. (B) by substituting “section 152(f)(1)” for “section 151(c)(3)”.
2002 - Subsec. (d)(2)(A). Pub. L. 107-147, Sec. 418(b)(1), amended subpar. (A) by substituting “$250” for “$200”.
Subsec. (d)(2)(B). Pub. L. 107-147, Sec. 418(b)(2), amended subpar. (B) by substituting “$500” for “$400”.
2001 - Subsec. (a)(2). Pub. L. 107-16, Sec. 204(b), amended par. (2) by substituting “35 percent” for “30 percent” and “$15,000” for “$10,000”.
Subsec. (c)(1). Pub. L. 107-16, Sec. 204(a)(1), amended par. (1) by substituting “$3,000” for “$2,400”.
Subsec. (c)(2). Pub. L. 107-16, Sec. 204(a)(2), amended par. (2) by substituting “$6,000” for “$4,800”.
1996 - Subsec. (e). Pub. L. 104-188, Sec. 1615(b) added subpar. (10).
1988 - Subsec. (b)(1)(A). Pub. L. 100-485, Sec. 703(a), substituted ‘age of 13’ for ‘age of 15’.
Subsec. (c). Pub. L. 100-485, Sec. 703(b), inserted at end: ‘The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 for the taxable year.’
Subsec. (e)(5)(B). Pub. L. 100-485, Sec. 703(a), substituted ‘age of 13’ for ‘age of 15’.
Subsec. (e)(9). Pub. L. 100-485, Sec. 703(c)(1), added par. (9).
1987 - Subsec. (b)(2)(A). Pub. L. 100-203 inserted at end ‘Such term shall not include any amount paid for services outside the taxpayer's household at a camp where the qualifying individual stays overnight.'
1986 - Subsecs. (b)(1)(A), (e)(6)(A). Pub. L. 99-514, Sec. 104(b)(1)(A), substituted ‘section 151(c)’ for ‘section 151(e)’.
Subsec. (e)(6)(B). Pub. L. 99-514, Sec. 104(b)(1)(B), substituted ‘section 151(c)(3)’ for ‘section 151(e)(3)’.
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 44A of this title as this section.
Subsec. (a)(1). Pub. L. 98-369, Sec. 474(c)(2), (3), substituted ‘subsection (b)(1)’ for ‘subsection (c)(1)’ and ‘subsection (b)(2)’ for ‘subsection (c)(2)’.
Subsec. (b). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec. (c) as (b). Former subsec. (b), which provided that the credit allowed by subsec. (a) could not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allowable under sections 33, 37, 38, 40, 41, 42, and 44, was struck out.
Subsec. (c). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(2). Pub. L. 98-369, Sec. 474(c)(4), substituted ‘subsection (b)(1)(C)’ for ‘subsection (c)(1)(C)’ in introductory provisions.
Subsec. (d)(2)(A). Pub. L. 98-369, Sec. 474(c)(5), substituted ‘subsection (c)(1)’ for ‘subsection (d)(1)’.
Subsec. (d)(2)(B). Pub. L. 98-369, Sec. 474(c)(6), substituted ‘subsection (c)(2)’ for ‘subsection (d)(2).
Subsec. (e). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).
Subsec. (e)(5). Pub. L. 98-369, Sec. 474(c)(7), substituted ‘subsection (b)(1)’ for ‘subsection (c)(1)’ in provisions following subpar. (B).
Pub. L. 98-369, Sec. 423(c)(4), amended par. (5) generally, substituting subpars. (A) and (B) reading:
‘(A) paragraph (2) or (4) of section 152(e) applies to any child with respect to any calendar year, and
‘(B) such child is under the age of 15 or is physically or mentally incapable of caring for himself,’ for former provisions:
‘(A) a child (as defined in section 151(e)(3)) who is under the age of 15 or who is physically or mentally incapable of caring for himself receives over half of his support during the calendar year from his parents who are divorced or legally separated under a decree of divorce or separate maintenance or who are separated under a written separation agreement, and
‘(B) such child is in the custody of one or both of his parents for more than one-half of the calendar year.’ and substituted in concluding text ‘(whichever is appropriate) with respect to the custodial parent (within the meaning of section 152(e)(1)), and shall not be treated as a qualifying individual with respect to the noncustodial parent’ for ‘, as the case may be, with respect to that parent who has custody for a longer period during such calendar year than the other parent, and shall not be treated as being a qualifying individual with respect to such other parent.’
Subsecs. (f), (g). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsecs. (f) and (g) as (e) and (f), respectively.
1983 - Subsec. (b)(2). Pub. L. 98-21 substituted ‘relating to credit for the elderly and the permanently and totally disabled’ for ‘relating to credit for the elderly’.
1981 - Subsec. (a). Pub. L. 97-34, Sec. 124(a), designated existing provisions as par. (1), substituted ‘the applicable percentage’ for ‘20 percent’ in par. (1) as so designated, and added par. (2).
Subsec. (c)(2)(B). Pub. L. 97-34, Sec. 124(c), designated existing provisions as cl. (i) and added cl. (ii).
Subsec. (c)(2)(C), (D). Pub. L. 97-34, Sec. 124(d), added subpars. (C) and (D).
Subsec. (d)(1). Pub. L. 97-34, Sec. 124(b)(1)(A), substituted ‘$2,400’ for ‘$2,000’.
Subsec. (d)(2). Pub. L. 97-34, Sec. 124(b)(1)(B), substituted ‘$4,800’ for ‘$4,000’.
Subsec. (e)(2)(A). Pub. L. 97-34, Sec. 124(b)(2)(A), substituted ‘$200’ for ‘$166’.
Subsec. (e)(2)(B). Pub. L. 97-34, Sec. 124(b)(2)(B), substituted ‘$400’ for ‘$333’.
1978 - Subsec. (f)(6). Pub. L. 95-600 substituted provision disallowing a credit for any amount paid by a taxpayer to an individual with respect to whom, for the taxable year, a deduction under section 151(e) is allowable either to the taxpayer or his spouse or who is a child of the taxpayer who has not attained the age of 19 at the close of the taxpayer year and defining ‘taxpayer year’ for provision disallowing a credit for any amount paid by the taxpayer to an individual bearing a relationship described in section 152(a)(1) through (8), or a dependent described in section 152(a)(9), except that a credit was allowed for an amount paid by a taxpayer to an individual with respect to whom, for the taxable year of the taxpayer in which the service was performed, neither the taxpayer nor his spouse was entitled to a deduction under section 151(e), provided the service constituted employment within the meaning of section 3121(b).
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Section 11(a)(1) of Pub. L. 110-172 effective on the date of the enactment of this Act [Enacted: Dec. 29, 2007].
EFFECTIVE DATE OF 2005 AMENDMENT
Section 404(d) of Pub. L. 109-135 provided that: “The amendments made by this section shall take effect as if included in the provisions of the Working Families Tax Relief Act of 2004 [Pub. L. 108-311, Sec. 208] to which they relate.”
EFFECTIVE DATE OF 2004 AMENDMENTS
Section 208 of Pub. L. 108-311 provided that: “The amendments made by this title shall apply to taxable years beginning after December 31, 2004.”
EFFECTIVE DATE OF 2002 AMENDMENTS
Section 418(c) of Pub. L. 107-147 provided that: “The amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16, Sec. 204] to which they relate.
EFFECTIVE DATE OF 2001 AMENDMENTS
Section 204(c) of Pub. L. 107-16 provided that: “The amendments made by this section shall apply to taxable years beginning after December 31, 2002.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1615(d)(1) of Pub. L. 104-188 provided that:
“IN GENERAL: The amendments made by this section shall apply with respect to returns the due date for which (without regard to extensions) is on or after the 30th day after the date of the enactment of this Act [Aug. 20, 1996].
SPECIAL RULE FOR 1995 AND 1996: In the case of returns for taxable years beginning in 1995 or 1996, a taxpayer shall not be required by the amendments made by this section to provide a taxpayer identification number for a child who is born after October 31, 1995, in the case of a taxable year beginning in 1995 or November 30, 1996, in the case of a taxable year beginning in 1996.”
EFFECTIVE DATE OF 1988 AMENDMENT
Section 703(d) of Pub. L. 100-485 provided that: ‘The amendments made by this section (amending this section and sections 129 and 6109 of this title) shall apply to taxable years beginning after December 31, 1988.’
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10101(b) of Pub. L. 100-203, as amended by Pub. L. 100-647, title II, Sec. 2004(a), Nov. 10, 1988, 102 Stat. 3598, provided that:
‘(1) In general. - The amendment made by subsection (a) (amending this section) shall apply to expenses paid in taxable years beginning after December 31, 1987.
‘(2) Special rule for cafeteria plans. - For purposes of section 125 of the Internal Revenue Code of 1986, a plan shall not be treated as failing to be a cafeteria plan solely because under the plan a participant elected before January 1, 1988, to receive reimbursement under the plan for dependent care assistance for periods after December 31, 1987, and such assistance included reimbursement for expenses at a camp where the dependent stays overnight.’
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 423(c)(4) of Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1984, see section 423(d) of Pub. L. 98-369, set out as a note under section 2 of this title.
Section 475(a) of Pub. L. 98-369 provided that: ‘The amendments made by this title (probably means subtitle F (Sec. 471-475) of title IV of Pub. L. 98-369, which enacted sections 25, 38, and 39 of this title, amended this section and sections 12, 15, 22 to 24, 27 to 35, 37, 39 to 41, 44A, 44C to 44H, 45 to 48, 51, 52, 55, 56, 86, 87, 103, 108, 129, 168, 196, 213, 280C, 381, 383, 401, 404, 409, 441, 527, 642, 691, 874, 882, 901, 904, 936, 1016, 1033, 1351, 1366, 1374, 1375, 1441, 1442, 1451, 3507, 6013, 6096, 6201, 6211, 6213, 6362, 6401, 6411, 6420, 6421, 6427, 6501, 6511, 7701, 7871, 9502, and 9503 of this title, repealed sections 38, 40, 44, 44B, 50A, 50B, and 53 of this title, and enacted provisions set out as notes under sections 30, 33, 46, and 48 of this title) shall apply to taxable years beginning after December 31, 1983, and to carrybacks from such years.'
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-21 applicable to taxable years beginning after Dec. 31, 1983, except that if an individual's annuity starting date was deferred under section 105(d)(6) of this title as in effect on the day before Apr. 20, 1983, such deferral shall end on the first day of such individual's first taxable year beginning after Dec. 31, 1983, see section 122(d) of Pub. L. 98-21, set out as a note under section 22 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 124(f) of Pub. L. 97-34 provided that:
‘(1) Except as provided in paragraph (2), the amendments made by this section (amending this section and enacting section 129 of this title) shall apply to taxable years beginning after December 31, 1981.
‘(2) The amendments made by subsection (e)(2) (amending sections 3121, 3306, and 3401 of this title and section 409 of Title 42, The Public Health and Welfare) shall apply to remuneration paid after December 31, 1981.’
EFFECTIVE DATE OF 1978 AMENDMENT
Section 121(b) of Pub. L. 95-600 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to taxable years beginning after December 31, 1978.’
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 3 of this title.
PROGRAM TO INCREASE PUBLIC AWARENESS
Pub. L. 101-508, title XI, Sec. 11114, Nov. 5, 1990, 104 Stat. 1388-414, provided that: ‘Not later than the first calendar year following the date of the enactment of this subtitle (Nov. 5, 1990), the Secretary of the Treasury, or the Secretary's delegate, shall establish a taxpayer awareness program to inform the taxpaying public of the availability of the credit for dependent care allowed under section 21 of the Internal Revenue Code of 1986 and the earned income credit and child health insurance under section 32 of such Code. Such public awareness program shall be designed to assure that individuals who may be eligible are informed of the availability of such credit and filing procedures.
The Secretary shall use appropriate means of communication to carry out the provisions of this section.'