26 U.S.C. § 21 — Expenses for household and dependent care

Page 68 TITLE 26—INTERNAL REVENUE CODE § 21 § 21. Expenses for household and dependent care services necessary for gainful employment (a) Allowance of credit (1) In general In the case of an individual for which there are 1 or more qualifying individuals (as de- fined in subsection (b)(1)) with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the appli- cable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by such individual during the taxable year. (2) Applicable percentage defined For purposes of paragraph (1), the term ‘‘ap- plicable percentage’’ means 35 percent reduced (but not below 20 percent) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $15,000. (b) Definitions of qualifying individual and em- ployment-related expenses For purposes of this section— (1) Qualifying individual The term ‘‘qualifying individual’’ means— (A) a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13, (B) a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or (C) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the tax- payer for more than one-half of such taxable year. (2) Employment-related expenses (A) In general The term ‘‘employment-related expenses’’ means amounts paid for the following ex- penses, but only if such expenses are in- curred to enable the taxpayer to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the taxpayer: (i) expenses for household services, and (ii) expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the taxpayer’s household at a camp where the qualifying individual stays overnight. (B) Exception Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer’s household shall be taken into account only if incurred for the care of— (i) a qualifying individual described in paragraph (1)(A), or (ii) a qualifying individual (not described in paragraph (1)(A)) who regularly spends at least 8 hours each day in the taxpayer’s household. (C) Dependent care centers Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer’s household by a dependent care center (as de- fined in subparagraph (D)) shall be taken into account only if— (i) such center complies with all applica- ble laws and regulations of a State or unit of local government, and (ii) the requirements of subparagraph (B) are met. (D) Dependent care center defined For purposes of this paragraph, the term ‘‘dependent care center’’ means any facility which— (i) provides care for more than six indi- viduals (other than individuals who reside at the facility), and (ii) receives a fee, payment, or grant for providing services for any of the individ- uals (regardless of whether such facility is operated for profit). (c) Dollar limit on amount creditable The amount of the employment-related ex- penses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed— (1) $3,000 if there is 1 qualifying individual with respect to the taxpayer for such taxable year, or (2) $6,000 if there are 2 or more qualifying in- dividuals with respect to the taxpayer for such taxable year. The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross in- come under section 129 for the taxable year. (d) Earned income limitation (1) In general Except as otherwise provided in this sub- section, the amount of the employment-re- lated expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed— (A) in the case of an individual who is not married at the close of such year, such indi- vidual’s earned income for such year, or (B) in the case of an individual who is mar- ried at the close of such year, the lesser of such individual’s earned income or the earned income of his spouse for such year. (2) Special rule for spouse who is a student or incapable of caring for himself In the case of a spouse who is a student or a qualifying individual described in subsection (b)(1)(C), for purposes of paragraph (1), such spouse shall be deemed for each month during which such spouse is a full-time student at an educational institution, or is such a qualifying individual, to be gainfully employed and to have earned income of not less than— (A) $250 if subsection (c)(1) applies for the taxable year, or (B) $500 if subsection (c)(2) applies for the taxable year. Page 69 TITLE 26—INTERNAL REVENUE CODE § 21 In the case of any husband and wife, this para- graph shall apply with respect to only one spouse for any one month. (e) Special rules For purposes of this section— (1) Place of abode An individual shall not be treated as having the same principal place of abode of the tax- payer if at any time during the taxable year of the taxpayer the relationship between the in- dividual and the taxpayer is in violation of local law. (2) Married couples must file joint return If the taxpayer is married at the close of the taxable year, the credit shall be allowed under subsection (a) only if the taxpayer and his spouse file a joint return for the taxable year. (3) Marital status An individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as mar- ried. (4) Certain married individuals living apart If— (A) an individual who is married and who files a separate return— (i) maintains as his home a household which constitutes for more than one-half of the taxable year the principal place of abode of a qualifying individual, and (ii) furnishes over half of the cost of maintaining such household during the taxable year, and (B) during the last 6 months of such tax- able year such individual’s spouse is not a member of such household, such individual shall not be considered as mar- ried. (5) Special dependency test in case of divorced parents, etc. If— (A) section 152(e) applies to any child with respect to any calendar year, and (B) such child is under the age of 13 or is physically or mentally incapable of caring for himself, in the case of any taxable year beginning in such calendar year, such child shall be treated as a qualifying individual described in sub- paragraph (A) or (B) of subsection (b)(1) (whichever is appropriate) with respect to the custodial parent (as defined in section 152(e)(4)(A)), and shall not be treated as a qualifying individual with respect to the non- custodial parent. (6) Payments to related individuals No credit shall be allowed under subsection (a) for any amount paid by the taxpayer to an individual— (A) with respect to whom, for the taxable year, a deduction under section 151(c) (relat- ing to deduction for personal exemptions for dependents) is allowable either to the tax- payer or his spouse, or (B) who is a child of the taxpayer (within the meaning of section 152(f)(1)) who has not attained the age of 19 at the close of the tax- able year. For purposes of this paragraph, the term ‘‘tax- able year’’ means the taxable year of the tax- payer in which the service is performed. (7) Student The term ‘‘student’’ means an individual who during each of 5 calendar months during the taxable year is a full-time student at an educational organization. (8) Educational organization The term ‘‘educational organization’’ means an educational organization described in sec- tion 170(b)(1)(A)(ii). (9) Identifying information required with re- spect to service provider No credit shall be allowed under subsection (a) for any amount paid to any person unless— (A) the name, address, and taxpayer iden- tification number of such person are in- cluded on the return claiming the credit, or (B) if such person is an organization de- scribed in section 501(c)(3) and exempt from tax under section 501(a), the name and ad- dress of such person are included on the re- turn claiming the credit. In the case of a failure to provide the informa- tion required under the preceding sentence, the preceding sentence shall not apply if it is shown that the taxpayer exercised due dili- gence in attempting to provide the informa- tion so required. (10) Identifying information required with re- spect to qualifying individuals No credit shall be allowed under this section with respect to any qualifying individual un- less the TIN of such individual is included on the return claiming the credit. (f) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section. (g) Special rules for 2021 In the case of any taxable year beginning after December 31, 2020, and before January 1, 2022— (1) Credit made refundable If the taxpayer (in the case of a joint return, either spouse) has a principal place of abode in the United States (determined as provided in section 32) for more than one-half of the tax- able year, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart C (and not allowed under this sub- part). (2) Increase in dollar limit on amount cred- itable Subsection (c) shall be applied— (A) by substituting ‘‘$8,000’’ for ‘‘$3,000’’ in paragraph (1) thereof, and (B) by substituting ‘‘$16,000’’ for ‘‘$6,000’’ in paragraph (2) thereof. (3) Increase in applicable percentage Subsection (a)(2) shall be applied— (A) by substituting ‘‘50 percent’’ for ‘‘35 percent’’, and Page 70 TITLE 26—INTERNAL REVENUE CODE § 21 (B) by substituting ‘‘$125,000’’ for ‘‘$15,000’’. (4) Application of phaseout to high income in- dividuals (A) In general Subsection (a)(2) shall be applied by sub- stituting ‘‘the phaseout percentage’’ for ‘‘20 percent’’. (B) Phaseout percentage The term ‘‘phaseout percentage’’ means 20 percent reduced (but not below zero) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $400,000. (h) Application of credit in possessions (1) Payment to possessions with mirror code tax systems The Secretary shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of this section (determined without regard to this subsection) with respect to taxable years beginning in or with 2021. Such amounts shall be determined by the Secretary based on infor- mation provided by the government of the re- spective possession. (2) Payments to other possessions The Secretary shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary as being equal to the aggregate benefits that would have been provided to resi- dents of such possession by reason of this sec- tion with respect to taxable years beginning in or with 2021 if a mirror code tax system had been in effect in such possession. The pre- ceding sentence shall not apply unless the re- spective possession has a plan, which has been approved by the Secretary, under which such possession will promptly distribute such pay- ments to its residents. (3) Coordination with credit allowed against United States income taxes In the case of any taxable year beginning in or with 2021, no credit shall be allowed under this section to any individual— (A) to whom a credit is allowable against taxes imposed by a possession with a mirror code tax system by reason of this section, or (B) who is eligible for a payment under a plan described in paragraph (2). (4) Mirror code tax system For purposes of this subsection, the term ‘‘mirror code tax system’’ means, with respect to any possession of the United States, the in- come tax system of such possession if the in- come tax liability of the residents of such pos- session under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (5) Treatment of payments For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same man- ner as a refund due from a credit provision re- ferred to in subsection (b)(2) of such section. (Added Pub. L. 94–455, title V, § 504(a)(1), Oct. 4, 1976, 90 Stat. 1563, § 44A; amended Pub. L. 95–600, title I, § 121(a), Nov. 6, 1978, 92 Stat. 2779; Pub. L. 97–34, title I § 124 (a)–(d), Aug. 13, 1981, 95 Stat. 197, 198; Pub. L. 98–21, title I, § 122(c)(1), Apr. 20, 1983, 97 Stat. 87; renumbered § 21 and amended Pub. L. 98–369, div. A, title IV, §§ 423(c)(4), 471(c), 474(c), July 18, 1984, 98 Stat. 801, 826, 830; Pub. L. 99–514, title I, § 104(b)(1), Oct. 22, 1986, 100 Stat. 2104; Pub. L. 100–203, title X, § 10101(a), Dec. 22, 1987, 101 Stat. 1330–384; Pub. L. 100–485, title VII, § 703(a)–(c)(1), Oct. 13, 1988, 102 Stat. 2426, 2427; Pub. L. 104–188, title I, § 1615(b), Aug. 20, 1996, 110 Stat. 1853; Pub. L. 107–16, title II, § 204(a), (b), June 7, 2001, 115 Stat. 49; Pub. L. 107–147, title IV, § 418(b), Mar. 9, 2002, 116 Stat. 57; Pub. L. 108–311, title II, §§ 203, 207(2), (3), Oct. 4, 2004, 118 Stat. 1175, 1177; Pub. L. 109–135, title IV, § 404(b), Dec. 21, 2005, 119 Stat. 2634; Pub. L. 110–172, § 11(a)(1), Dec. 29, 2007, 121 Stat. 2484; Pub. L. 117–2, title IX, § 9631(a), (b), Mar. 11, 2021, 135 Stat. 159.) Editorial Notes PRIOR PROVISIONS A prior section 21 was renumbered section 15 of this title. AMENDMENTS 2021—Subsec. (g). Pub. L. 117–2, § 9631(a), added subsec. (g). Subsec. (h). Pub. L. 117–2, § 9631(b), added subsec. (h). 2007—Subsec. (e)(5). Pub. L. 110–172 substituted ‘‘sec- tion 152(e)(4)(A)’’ for ‘‘section 152(e)(3)(A)’’ in con- cluding provisions. 2005—Subsec. (b)(1)(B). Pub. L. 109–135 inserted ‘‘(as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B))’’ after ‘‘depend- ent of the taxpayer’’. 2004—Subsec. (a)(1). Pub. L. 108–311, § 203(a), sub- stituted ‘‘In the case of an individual for which there are 1 or more qualifying individuals (as defined in sub- section (b)(1)) with respect to such individual’’ for ‘‘In the case of an individual who maintains a household which includes as a member one or more qualifying in- dividuals (as defined in subsection (b)(1))’’. Subsec. (b)(1). Pub. L. 108–311, § 203(b), reenacted head- ing without change and amended text generally. Prior to amendment, text read as follows: ‘‘The term ‘quali- fying individual’ means— ‘‘(A) a dependent of the taxpayer who is under the age of 13 and with respect to whom the taxpayer is entitled to a deduction under section 151(c), ‘‘(B) a dependent of the taxpayer who is physically or mentally incapable of caring for himself, or ‘‘(C) the spouse of the taxpayer, if he is physically or mentally incapable of caring for himself.’’ Subsec. (e)(1). Pub. L. 108–311, § 203(c), amended head- ing and text of par. (1) generally. Prior to amendment, text read as follows: ‘‘An individual shall be treated as maintaining a household for any period only if over half the cost of maintaining the household for such pe- riod is furnished by such individual (or, if such indi- vidual is married during such period, is furnished by such individual and his spouse).’’ Subsec. (e)(5). Pub. L. 108–311, § 207(2), struck out ‘‘paragraph (2) or (4) of’’ before ‘‘section 152(e)’’ in sub- par. (A) and substituted ‘‘as defined in section 152(e)(3)(A)’’ for ‘‘within the meaning of section 152(e)(1)’’ in concluding provisions. Subsec. (e)(6)(B). Pub. L. 108–311, § 207(3), substituted ‘‘section 152(f)(1)’’ for ‘‘section 151(c)(3)’’. 2002—Subsec. (d)(2)(A). Pub. L. 107–147, § 418(b)(1), sub- stituted ‘‘$250’’ for ‘‘$200’’. Page 71 TITLE 26—INTERNAL REVENUE CODE § 21 Subsec. (d)(2)(B). Pub. L. 107–147, § 418(b)(2), sub- stituted ‘‘$500’’ for ‘‘$400’’. 2001—Subsec. (a)(2). Pub. L. 107–16, § 204(b), sub- stituted ‘‘35 percent’’ for ‘‘30 percent’’ and ‘‘$15,000’’ for ‘‘$10,000’’. Subsec. (c)(1). Pub. L. 107–16, § 204(a)(1), substituted ‘‘$3,000’’ for ‘‘$2,400’’. Subsec. (c)(2). Pub. L. 107–16, § 204(a)(2), substituted ‘‘$6,000’’ for ‘‘$4,800’’. 1996—Subsec. (e)(10). Pub. L. 104–188 added par. (10). 1988—Subsec. (b)(1)(A). Pub. L. 100–485, § 703(a), sub- stituted ‘‘age of 13’’ for ‘‘age of 15’’. Subsec. (c). Pub. L. 100–485, § 703(b), inserted at end: ‘‘The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggre- gate amount excludable from gross income under sec- tion 129 for the taxable year.’’ Subsec. (e)(5)(B). Pub. L. 100–485, § 703(a), substituted ‘‘age of 13’’ for ‘‘age of 15’’. Subsec. (e)(9). Pub. L. 100–485, § 703(c)(1), added par. (9). 1987—Subsec. (b)(2)(A). Pub. L. 100–203 inserted at end ‘‘Such term shall not include any amount paid for serv- ices outside the taxpayer’s household at a camp where the qualifying individual stays overnight.’’ 1986—Subsecs. (b)(1)(A), (e)(6)(A). Pub. L. 99–514, § 104(b)(1)(A), substituted ‘‘section 151(c)’’ for ‘‘section 151(e)’’. Subsec. (e)(6)(B). Pub. L. 99–514, § 104(b)(1)(B), sub- stituted ‘‘section 151(c)(3)’’ for ‘‘section 151(e)(3)’’. 1984—Pub. L. 98–369, § 471(c), renumbered section 44A of this title as this section. Subsec. (a)(1). Pub. L. 98–369, § 474(c)(2), (3), sub- stituted ‘‘subsection (b)(1)’’ for ‘‘subsection (c)(1)’’ and ‘‘subsection (b)(2)’’ for ‘‘subsection (c)(2)’’. Subsec. (b). Pub. L. 98–369, § 474(c)(1), redesignated subsec. (c) as (b). Former subsec. (b), which provided that the credit allowed by subsec. (a) could not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allow- able under sections 33, 37, 38, 40, 41, 42, and 44, was struck out. Subsec. (c). Pub. L. 98–369, § 474(c)(1), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b). Subsec. (d). Pub. L. 98–369, § 474(c)(1), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c). Subsec. (d)(2). Pub. L. 98–369, § 474(c)(4), substituted ‘‘subsection (b)(1)(C)’’ for ‘‘subsection (c)(1)(C)’’ in in- troductory provisions. Subsec. (d)(2)(A). Pub. L. 98–369, § 474(c)(5), substituted ‘‘subsection (c)(1)’’ for ‘‘subsection (d)(1)’’. Subsec. (d)(2)(B). Pub. L. 98–369, § 474(c)(6), substituted ‘‘subsection (c)(2)’’ for ‘‘subsection (d)(2). Subsec. (e). Pub. L. 98–369, § 474(c)(1), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). Subsec. (e)(5). Pub. L. 98–369, § 474(c)(7), substituted ‘‘subsection (b)(1)’’ for ‘‘subsection (c)(1)’’ in provisions following subpar. (B). Pub. L. 98–369, § 423(c)(4), amended par. (5) generally, substituting subpars. (A) and (B) reading: ‘‘(A) paragraph (2) or (4) of section 152(e) applies to any child with respect to any calendar year, and ‘‘(B) such child is under the age of 15 or is phys- ically or mentally incapable of caring for himself,’’ for former provisions: ‘‘(A) a child (as defined in section 151(e)(3)) who is under the age of 15 or who is physically or mentally incapable of caring for himself receives over half of his support during the calendar year from his parents who are divorced or legally separated under a decree of divorce or separate maintenance or who are sepa- rated under a written separation agreement, and ‘‘(B) such child is in the custody of one or both of his parents for more than one-half of the calendar year.’’ and substituted in concluding text ‘‘(whichever is ap- propriate) with respect to the custodial parent (within the meaning of section 152(e)(1)), and shall not be treat- ed as a qualifying individual with respect to the non- custodial parent’’ for ‘‘, as the case may be, with re- spect to that parent who has custody for a longer pe- riod during such calendar year than the other parent, and shall not be treated as being a qualifying indi- vidual with respect to such other parent.’’ Subsecs. (f), (g). Pub. L. 98–369, § 474(c)(1), redesig- nated subsecs. (f) and (g) as (e) and (f), respectively. 1983—Subsec. (b)(2). Pub. L. 98–21 substituted ‘‘relat- ing to credit for the elderly and the permanently and totally disabled’’ for ‘‘relating to credit for the elder- ly’’. 1981—Subsec. (a). Pub. L. 97–34, § 124(a), designated ex- isting provisions as par. (1), substituted ‘‘the applicable percentage’’ for ‘‘20 percent’’ in par. (1) as so des- ignated, and added par. (2). Subsec. (c)(2)(B). Pub. L. 97–34, § 124(c), designated ex- isting provisions as cl. (i) and added cl. (ii). Subsec. (c)(2)(C), (D). Pub. L. 97–34, § 124(d), added sub- pars. (C) and (D). Subsec. (d)(1). Pub. L. 97–34, § 124(b)(1)(A), substituted ‘‘$2,400’’ for ‘‘$2,000’’. Subsec. (d)(2). Pub. L. 97–34, § 124(b)(1)(B), substituted ‘‘$4,800’’ for ‘‘$4,000’’. Subsec. (e)(2)(A). Pub. L. 97–34, § 124(b)(2)(A), sub- stituted ‘‘$200’’ for ‘‘$166’’. Subsec. (e)(2)(B). Pub. L. 97–34, § 124(b)(2)(B), sub- stituted ‘‘$400’’ for ‘‘$333’’. 1978—Subsec. (f)(6). Pub. L. 95–600 substituted provi- sion disallowing a credit for any amount paid by a tax- payer to an individual with respect to whom, for the taxable year, a deduction under section 151(e) is allow- able either to the taxpayer or his spouse or who is a child of the taxpayer who has not attained the age of 19 at the close of the taxpayer year and defining ‘‘tax- payer year’’ for provision disallowing a credit for any amount paid by the taxpayer to an individual bearing a relationship described in section 152(a)(1) through (8), or a dependent described in section 152(a)(9), except that a credit was allowed for an amount paid by a tax- payer to an individual with respect to whom, for the taxable year of the taxpayer in which the service was performed, neither the taxpayer nor his spouse was en- titled to a deduction under section 151(e), provided the service constituted employment within the meaning of section 3121(b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117–2, title IX, § 9631(d), Mar. 11, 2021, 135 Stat. 160, provided that: ‘‘The amendments made by this sec- tion [amending this section, section 6211 of this title and section 1324 of Title 31, Money and Finance] shall apply to taxable years beginning after December 31, 2020.’’ EFFECTIVE DATE OF 2005 AMENDMENT Pub. L. 109–135, title IV, § 404(d), Dec. 21, 2005, 119 Stat. 2634, provided that: ‘‘The amendments made by this section [amending this section and sections 152 and 223 of this title] shall take effect as if included in the pro- visions of the Working Families Tax Relief Act of 2004 [Pub. L. 108–311] to which they relate.’’ EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–311 applicable to taxable years beginning after Dec. 31, 2004, see section 208 of Pub. L. 108–311, set out as a note under section 2 of this title. EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107–147, title IV, § 418(c), Mar. 9, 2002, 116 Stat. 58, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 23 and 137 of this title] shall take effect as if included in the provi- sions of the Economic Growth and Tax Relief Rec- onciliation Act of 2001 [Pub. L. 107–16] to which they re- late.’’ EFFECTIVE DATE OF 2001 AMENDMENT Pub. L. 107–16, title II, § 204(c), June 7, 2001, 115 Stat. 50, provided that: ‘‘The amendments made by this sec- Page 72 TITLE 26—INTERNAL REVENUE CODE § 22 tion [amending this section] shall apply to taxable years beginning after December 31, 2002.’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–188, title I, § 1615(d), Aug. 20, 1996, 110 Stat. 1853, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and sections 151, 6109, 6213, and 6724 of this title] shall apply with respect to re- turns the due date for which (without regard to exten- sions) is on or after the 30th day after the date of the enactment of this Act [Aug. 20, 1996]. ‘‘(2) SPECIAL RULE FOR 1995 AND 1996.—In the case of re- turns for taxable years beginning in 1995 or 1996, a tax- payer shall not be required by the amendments made by this section to provide a taxpayer identification number for a child who is born after October 31, 1995, in the case of a taxable year beginning in 1995 or Novem- ber 30, 1996, in the case of a taxable year beginning in 1996.’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–485, title VII, § 703(d), Oct. 13, 1988, 102 Stat. 2427, provided that: ‘‘The amendments made by this section [amending this section and sections 129 and 6109 of this title] shall apply to taxable years beginning after December 31, 1988.’’ EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title X, § 10101(b), Dec. 22, 1987, 101 Stat. 1330–384, as amended by Pub. L. 100–647, title II, § 2004(a), Nov. 10, 1988, 102 Stat. 3598, provided that: ‘‘(1) IN GENERAL.—The amendment made by sub- section (a) [amending this section] shall apply to ex- penses paid in taxable years beginning after December 31, 1987. ‘‘(2) SPECIAL RULE FOR CAFETERIA PLANS.—For pur- poses of section 125 of the Internal Revenue Code of 1986, a plan shall not be treated as failing to be a cafe- teria plan solely because under the plan a participant elected before January 1, 1988, to receive reimburse- ment under the plan for dependent care assistance for periods after December 31, 1987, and such assistance in- cluded reimbursement for expenses at a camp where the dependent stays overnight.’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99–514, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by section 423(c)(4) of Pub. L. 98–369 ap- plicable to taxable years beginning after Dec. 31, 1984, see section 423(d) of Pub. L. 98–369, set out as a note under section 2 of this title. Pub. L. 98–369, title IV, § 475(a), July 18, 1984, 98 Stat. 847, provided that: ‘‘The amendments made by this title [probably means subtitle F (§§ 471–475) of title IV of Pub. L. 98–369, which enacted sections 25, 38, and 39 of this title, amended this section and sections 12, 15, 22 to 24, 27 to 35, 37, 39 to 41, 44A, 44C to 44H, 45 to 48, 51, 52, 55, 56, 86, 87, 103, 108, 129, 168, 196, 213, 280C, 381, 383, 401, 404, 409, 441, 527, 642, 691, 874, 882, 901, 904, 936, 1016, 1033, 1351, 1366, 1374, 1375, 1441, 1442, 1451, 3507, 6013, 6096, 6201, 6211, 6213, 6362, 6401, 6411, 6420, 6421, 6427, 6501, 6511, 7701, 7871, 9502, and 9503 of this title, repealed sections 38, 40, 44, 44B, 50A, 50B, and 53 of this title, and enacted provi- sions set out as notes under sections 30, 33, 46, and 48 of this title] shall apply to taxable years beginning after December 31, 1983, and to carrybacks from such years.’’ EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 98–21 applicable to taxable years beginning after Dec. 31, 1983, except that if an in- dividual’s annuity starting date was deferred under sec- tion 105(d)(6) of this title as in effect on the day before Apr. 20, 1983, such deferral shall end on the first day of such individual’s first taxable year beginning after Dec. 31, 1983, see section 122(d) of Pub. L. 98–21, set out as a note under section 22 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–34, title I, § 124(f), Aug. 13, 1981, 95 Stat. 201, provided that: ‘‘(1) Except as provided in paragraph (2), the amend- ments made by this section [amending this section and enacting section 129 of this title] shall apply to taxable years beginning after December 31, 1981. ‘‘(2) The amendments made by subsection (e)(2) [amending sections 3121, 3306, and 3401 of this title and section 409 of Title 42, The Public Health and Welfare] shall apply to remuneration paid after December 31, 1981.’’ EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title I, § 121(b), Nov. 6, 1978, 92 Stat. 2779, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply to tax- able years beginning after December 31, 1978.’’ EFFECTIVE DATE Section applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under sec- tion 3 of this title. PROGRAM TO INCREASE PUBLIC AWARENESS Pub. L. 101–508, title XI, § 11114, Nov. 5, 1990, 104 Stat. 1388–414, provided that: ‘‘Not later than the first cal- endar year following the date of the enactment of this subtitle [Nov. 5, 1990], the Secretary of the Treasury, or the Secretary’s delegate, shall establish a taxpayer awareness program to inform the taxpaying public of the availability of the credit for dependent care al- lowed under section 21 of the Internal Revenue Code of 1986 and the earned income credit and child health in- surance under section 32 of such Code. Such public awareness program shall be designed to assure that in- dividuals who may be eligible are informed of the avail- ability of such credit and filing procedures. The Sec- retary shall use appropriate means of communication to carry out the provisions of this section.’’ § 22. Credit for the elderly and the permanently and totally disabled (a) General rule In the case of a qualified individual, there shall be allowed as a credit against the tax im- posed by this chapter for the taxable year an amount equal to 15 percent of such individual’s section 22 amount for such taxable year. (b) Qualified individual For purposes of this section, the term ‘‘quali- fied individual’’ means any individual— (1) who has attained age 65 before the close of the taxable year, or (2) who retired on disability before the close of the taxable year and who, when he retired, was permanently and totally disabled. (c) Section 22 amount For purposes of subsection (a)— (1) In general An individual’s section 22 amount for the taxable year shall be the applicable initial amount determined under paragraph (2), re- duced as provided in paragraph (3) and in sub- section (d).