Sec. 232. Increase in exclusion for employer-provided dependent care assistance
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/bill/116/hr/6379/ih/section-232A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 2021 or 2022— Subparagraph
(A)shall be applied be substituting $10,500 (half such dollar amount for $5,000 ($2,500 . In the case of any taxable year beginning after 2021, the $10,500 amount in clause
(i)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 2020 for 2016 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence which is not a multiple of $50, shall be rounded to the nearest multiple of $50. . The amendment made by this section shall apply to taxable years beginning after December 31, 2020.