Text: HF02402 Text: HF02404 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.12F DEPENDENT CARE TAX
1 2 CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a dependent care tax credit for married taxpayers where one
1 6 spouse is not gainfully employed for more than one hundred
1 7 four hours during each calendar quarter during the tax year
1 8 and that spouse provides household services and care for a
1 9 qualifying individual. The credit is also available to an
1 10 unmarried head of household where the head of household is not
1 11 gainfully employed for more than one hundred four hours during
1 12 each calendar quarter during the tax year and the head of
1 13 household provides household services and care for a
1 14 qualifying individual. The amount of the credit shall be
1 15 computed as follows:
1 16 a. Calculate a provisional credit equal to the product of
1 17 the applicable percentage and the household services and care
1 18 expenses.
1 19 b. Calculate the actual credit as follows:
1 20 (1) For a taxpayer with net income of less than ten
1 21 thousand dollars, seventy-five percent of the provisional
1 22 credit.
1 23 (2) For a taxpayer with net income of ten thousand dollars
1 24 or more but less than twenty thousand dollars, sixty-five
1 25 percent of the provisional credit.
1 26 (3) For a taxpayer with net income of twenty thousand
1 27 dollars or more but less than twenty-five thousand dollars,
1 28 fifty-five percent of the provisional credit.
1 29 (4) For a taxpayer with net income of twenty-five thousand
1 30 dollars or more but less than thirty-five thousand dollars,
1 31 fifty percent of the provisional credit.
1 32 (5) For a taxpayer with net income of thirty-five thousand
1 33 dollars or more but less than forty thousand dollars, forty
1 34 percent of the provisional credit.
1 35 (6) For a taxpayer with net income of forty thousand
2 1 dollars or more, zero percent of the provisional credit.
2 2 2. For purposes of this section:
2 3 a. "Applicable percentage" means the same as defined in
2 4 section 21(a)(2) of the Internal Revenue Code.
2 5 b. "Household services and care expenses" equals two
2 6 thousand four hundred dollars if there is only one qualifying
2 7 individual, and four thousand eight hundred dollars if there
2 8 are two or more qualifying individuals.
2 9 c. "Qualifying individual" means the same as defined in
2 10 section 21(b)(1) of the Internal Revenue Code.
2 11 3. Any credit in excess of the tax liability shall be
2 12 refunded. In lieu of claiming a refund, a taxpayer may elect
2 13 to have the overpayment shown on the taxpayer's final,
2 14 completed return credited to the tax liability for the
2 15 following taxable year.
2 16 4. The credit is only available to married taxpayers
2 17 filing jointly and unmarried heads of household. A taxpayer
2 18 shall not claim a credit under this section and section
2 19 422.12C for the same tax year. Nonresidents or part-year
2 20 residents of Iowa must determine their Iowa dependent care tax
2 21 credit in the ratio of their Iowa source net income to their
2 22 all source net income.
2 23 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
2 24 retroactively to January 1, 2000, for tax years beginning on
2 25 or after that date.
2 26 EXPLANATION
2 27 This bill provides a refundable tax credit under the
2 28 individual income tax for a spouse or unmarried head of
2 29 household who remains at home to provide household services
2 30 and care for a dependent and who is not gainfully employed for
2 31 more than 104 hours during each calendar quarter during the
2 32 tax year. The computation of the amount of the credit is
2 33 patterned after the method for computing the federal credit
2 34 available for persons who incurred expenses for household and
2 35 dependent care services so that they may be gainfully employed
3 1 and patterned after Iowa's child and dependent care credit,
3 2 which is a percentage of that federal credit.
3 3 The bill applies retroactively to January 1, 2000, for tax
3 4 years beginning on or after that date.
3 5 LSB 6019HH 78
3 6 mg/cf/24
Text: HF02402 Text: HF02404 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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