Text: SF00040 Text: SF00042 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.12F CHILD CARE TAX CREDIT. 1 2 1. The taxes imposed under this division, less the credits 1 3 allowed under section 422.12 and section 422.12B, shall be 1 4 reduced by a child care tax credit for married taxpayers where 1 5 one spouse is not gainfully employed for more than one hundred 1 6 four hours during each calendar quarter during the tax year 1 7 and that spouse provides household services and care for a 1 8 qualifying child. An individual who has net earnings from 1 9 self-employment which are subject to the self-employment tax 1 10 under the federal Social Security Act of six hundred dollars 1 11 or more during a calendar quarter or two thousand four hundred 1 12 dollars or more during a calendar year is considered gainfully 1 13 employed for more than one hundred four hours during a 1 14 calendar quarter. The amount of the credit is equal to two 1 15 hundred fifty dollars for each qualified child. 1 16 2. Any credit in excess of the tax liability is 1 17 nonrefundable. The credit is only available to married 1 18 taxpayers filing jointly. A taxpayer shall not claim a credit 1 19 under this section and section 422.12C for the same tax year. 1 20 Nonresidents or part-year residents of Iowa must determine 1 21 their Iowa child care tax credit in the ratio of their Iowa 1 22 source net income to their all source net income. 1 23 3. "Qualifying child" means a dependent with respect to 1 24 whom the taxpayer is entitled to a deduction under section 1 25 151(c) of the Internal Revenue Code who is a child, stepchild, 1 26 or adopted child, or other lineal descendent of the taxpayer 1 27 and who is less than six years of age at the end of the tax 1 28 year. 1 29 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 1 30 retroactively to January 1, 2001, for tax years beginning on 1 31 or after that date. 1 32 EXPLANATION 1 33 This bill provides a $250 individual income tax credit for 1 34 each qualified child for married taxpayers where one spouse 1 35 remains at home to provide household services and care for a 2 1 qualifying child and is not gainfully employed for more than 2 2 104 hours during each calendar quarter during the tax year. 2 3 Net earnings from self-employment of at least $600 in a 2 4 calendar quarter or $2,400 in a calendar year is considered 2 5 gainfully employed for more than 104 hours during a calendar 2 6 quarter. 2 7 A qualifying child is a dependent who is a child, 2 8 stepchild, adopted child, or other lineal descendent of the 2 9 taxpayer who is less than six years old at the end of the tax 2 10 year. 2 11 The bill applies retroactively to January 1, 2001, for tax 2 12 years beginning on or after that date. 2 13 LSB 1304SS 79 2 14 mg/gg/8
Text: SF00040 Text: SF00042 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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