Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Children & Family Services Committee

HJM 4005

Brief Description:  Requesting that the dependent care tax credit be expanded to include parents who stay at home to care for children.

Sponsors:  Representatives Roach, Kirby, Marine, Miloscia, Cairnes, Bush, Anderson, Morell, Lambert, Pennington, Casada and Ogden.

Brief Summary of Bill

$The joint memorial petitions the President and the Congress to extend the Child and Dependent Care Credit to include a parent who stays at home to care for his or her children.

Hearing Date:  2/19/01

Staff:  Deborah Frazier (786‑7152).

Background: 

The Child and Dependent Care Credit is available to federal income tax filers who paid someone to care for a qualifying individual so the filer could work or look for work.

Qualifying individuals must live in the filer=s home, and must be dependents under the age of 13 or a spouse who is mentally or physically incapable of self-care.   If the dependent is a child, and the parents are married, both parents must have earned income to take advantage of the credit.

The credit is a percentage, based on adjusted gross income, of the amount of work‑related child and dependent care expenses paid to a care provider.   Filers may use up to $2,400 of the expenses paid in a year for one qualifying individual, or $4,800 for two or more qualifying individuals.

Summary of Bill: 

The joint memorial petitions the President and the Congress to extend the Child and Dependent Care Credit to include a parent who stays at home to care for his or her children.

Appropriation:  Not Applicable.

Fiscal Note:  Not Applicable.