Text: SF00364 Text: SF00366 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.12F ELDERLY DEPENDENT CARE 1 2 TAX CREDIT. 1 3 1. The taxes imposed under this division, less the credit 1 4 allowed under section 422.12 and other nonrefundable credits, 1 5 shall be reduced by an elderly dependent care tax credit for a 1 6 taxpayer that provides household services and care for a 1 7 qualifying individual. The amount of the credit shall be 1 8 computed as follows: 1 9 a. Calculate a provisional credit equal to the product of 1 10 the applicable percentage and the household services and care 1 11 expenses. 1 12 b. Calculate the actual credit as follows: 1 13 (1) For a taxpayer with net income of less than ten 1 14 thousand dollars, seventy-five percent of the provisional 1 15 credit. 1 16 (2) For a taxpayer with net income of ten thousand dollars 1 17 or more but less than twenty thousand dollars, sixty-five 1 18 percent of the provisional credit. 1 19 (3) For a taxpayer with net income of twenty thousand 1 20 dollars or more but less than twenty-five thousand dollars, 1 21 fifty-five percent of the provisional credit. 1 22 (4) For a taxpayer with net income of twenty-five thousand 1 23 dollars or more but less than thirty-five thousand dollars, 1 24 fifty percent of the provisional credit. 1 25 (5) For a taxpayer with net income of thirty-five thousand 1 26 dollars or more but less than forty thousand dollars, forty 1 27 percent of the provisional credit. 1 28 (6) For a taxpayer with net income of forty thousand 1 29 dollars or more, zero percent of the provisional credit. 1 30 2. For purposes of this section: 1 31 a. "Applicable percentage" means the same as defined in 1 32 section 21(a)(2) of the Internal Revenue Code. 1 33 b. "Household services and care expenses" equals two 1 34 thousand four hundred dollars if there is only one qualifying 1 35 individual, and four thousand eight hundred dollars if there 2 1 are two or more qualifying individuals. 2 2 c. "Qualifying individual" means an individual who is 2 3 sixty-two years of age or older and is claimed as a dependent 2 4 by the taxpayer. 2 5 3. Any credit in excess of the tax liability shall be 2 6 refunded. In lieu of claiming a refund, a taxpayer may elect 2 7 to have the overpayment shown on the taxpayer's final, 2 8 completed return credited to the tax liability for the 2 9 following taxable year. 2 10 4. Married taxpayers electing to file separate returns or 2 11 to file separately on a combined return form must determine 2 12 the elderly dependent care tax credit under subsection 1 based 2 13 upon their combined net income and allocate the total credit 2 14 amount to each spouse in the proportion that each spouse's 2 15 respective net income bears to the total combined net income. 2 16 Nonresidents or part-year residents of Iowa must determine 2 17 their elderly dependent care tax credit in the ratio of their 2 18 Iowa source net income to their all source net income. 2 19 Nonresidents or part-year residents who are married and elect 2 20 to file separate returns or to file separately on a combined 2 21 return form must allocate the elderly dependent care tax 2 22 credit between the spouses in the ratio of each spouse's Iowa 2 23 source net income to the combined Iowa source net income of 2 24 the taxpayers. 2 25 5. A taxpayer shall not claim the Iowa child and dependent 2 26 care credit and elderly dependent care tax credit for the same 2 27 individual. 2 28 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 2 29 retroactively to January 1, 2001, for tax years beginning on 2 30 or after that date. 2 31 EXPLANATION 2 32 This bill provides a refundable tax credit under the 2 33 individual income tax for a taxpayer who provides household 2 34 services and care for a dependent who is 62 years or older. 2 35 The computation of the amount of the credit is patterned after 3 1 the method for computing the federal credit available for 3 2 persons who incurred expenses for household and dependent care 3 3 services so that they may be gainfully employed and patterned 3 4 after Iowa's child and dependent care credit, which is a 3 5 percentage of that federal credit. A taxpayer may not claim 3 6 the elderly dependent care tax credit and the Iowa child and 3 7 dependent care credit for the same individual. 3 8 The bill applies retroactively to January 1, 2001, for tax 3 9 years beginning on or after that date. 3 10 LSB 2996SS 79 3 11 mg/cls/14
Text: SF00364 Text: SF00366 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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