Family Savings for Kids and Seniors Act

Family Savings for Kids and Seniors Act

This bill provides an annual inflation adjustment after 2023 to the $5,000 tax exclusion for employer-provided dependent care assistance.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5036 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5036

 To amend the Internal Revenue Code of 1986 to increase the exclusion 
     for employer-provided dependent care assistance including the 
      limitation on dependent care flexible spending arrangements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2023

   Ms. Porter (for herself, Mrs. Hinson, Ms. Norton, Mrs. Kiggans of 
   Virginia, and Mr. Cole) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the exclusion 
     for employer-provided dependent care assistance including the 
      limitation on dependent care flexible spending arrangements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Savings for Kids and Seniors 
Act''.

SEC. 2. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED DEPENDENT CARE 
              ASSISTANCE INCLUDING DEPENDENT CARE FLEXIBLE SPENDING 
              ARRANGEMENTS.

    (a) Increase To Take Into Account Inflation Since 1986.--Section 
129(a)(2)(D) of the Internal Revenue Code of 1986 is amended to read as 
follows:
                    ``(D) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2023, 
                the $5,000 amount in subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 1986' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                If any increase determined under this paragraph is not 
                a multiple of $100, such increase shall be rounded to 
                the next lowest multiple of $100.''.
    (b) Conforming Amendment.--Section 129(a)(2)(A) of such Code is 
amended by striking ``$2,500'' and inserting ``half such dollar 
amount''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.
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