Deduction for daycare expenses

(a) In general Part VI of subchapter B of chapter 1 of subtitle A is amended by redesignating section 224 as section 225 and inserting after section 223 the following new section: 224. Daycare expenses (a) In general In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualified daycare expenses of the individual for such taxable year. (b) Qualified daycare expenses For purposes of this section, the term qualified daycare expenses means the amounts paid or incurred by the individual as tuition for a dependent of the taxpayer who has not attained the age of 7 to attend a childcare institution (as defined in section 1355.20 of title 45, Code of Federal Regulations).. (b) Deduction allowed to non-Itemizers Section 63(b) (as amended by section 4) is further amended by striking and at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting, and, and by adding at the end the following new paragraph: (6) the deduction provided in section 224.. (c) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 of subtitle A is amended by striking the item relating to section 224 and inserting the following new items: Sec. 224. Daycare expenses. Sec. 225. Cross reference.. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.