Plain English Breakdown
The official source material does not provide specific details about the tie bar or the exact nature of HB 4056, so it was removed from the explanation.
Allowing Deductions for Child Care Savings Account Contributions
This law allows people to deduct contributions they make to a child care savings account from their individual income tax.
What This Bill Does
- Allows taxpayers to subtract the amount they put into a child care savings account from their taxes.
- Modifies section 30 of the Personal Income Tax Act, which deals with deductions for individuals.
Who It Names or Affects
- Taxpayers who contribute to child care savings accounts
- Individuals filing personal income tax returns
Terms To Know
- Child Care Savings Account
- A special account where money is saved for the purpose of paying for child care expenses.
- Deduction
- An amount subtracted from taxable income to lower the total tax owed.
Limits and Unknowns
- The bill text does not specify how much can be deducted or what qualifies as a child care savings account.
- It is unclear when this law would take effect, if passed.