FOR IMMEDIATE RELEASE:
August 6, 2020
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) introduced the Tax Relief for Families Suffering from Government-Mandated Shutdowns Act to help put Americans on the strongest financial footing as they adjust to the challenges posed by the pandemic and the government response, including taking on more costs related to educating their kids from home while trying to otherwise provide for their families.
“When Americans look at Congress, they all too often have to think of what it takes from them, or from future generations, for too little results. As Americans face new and frequently overwhelming burdens due to this national emergency, my legislation gives them the certainty of knowing they can keep more of their own money in their own pocket to best meet their families’ needs,” said Dr. Paul.
Among its reforms, Dr. Paul’s legislation would give Americans the chance to deduct $500 toward the cost of internet access, whether home or mobile. It would enable parents to deduct up to $1,000 of funds spent on school expenses, including technology needs such as a tablet or laptop, while also creating a separate deduction for tuition and school curriculum costs for online classes, homeschool, or private school.
As educators adjust to virtual learning needs, it would eliminate the $250 cap on deducting qualified teaching expenses.
Dr. Paul’s plan also restores the deduction for business expenses that employers do not reimburse, but it would do so without requiring costs to hit 2% of an employee’s Adjusted Gross Income (AGI) before the deduction kicks in, as used to be the case with the deduction. For example, an employee would be able to deduct the cost of personal protective equipment (PPE) not covered by his employer.
It would also ensure parents can deduct work-related child care expenses not currently covered by the child care tax credit.
Dr. Paul’s legislation sets its deductions “above the line” and in addition to other available credits and deductions, ensuring they further lower an American’s taxable income and do not need to be itemized, making them open to all eligible tax filers.
You can read the bill HERE, and you can find a summary below:
Dr. Rand Paul’s Tax Relief for Families Suffering from Government-Mandated Shutdowns Act
• Allows people to deduct $500 for internet access (either home or mobile).
• Reinstitutes the uncompensated business expense deduction without the 2% floor.
• Allows up to a $1,000 deduction for miscellaneous school expenses incurred for the schooling of one’s own child.
• Provides a deduction for tuition and/or curriculum for schooling expenses – for example, an online school, procuring a homeschool curriculum, or paying private school tuition.
• Lifts the $250 cap on qualified teacher expenses.
• Provides a deduction for work-related child care expenses that are not covered or taken into account by the existing child care tax credit.
• All of these deductions are above-the-line deductions - Americans do not have to itemize to take them – and are in addition to the standard or itemized deductions one takes after Adjusted Gross Income (AGI) is calculated. So, these would apply to all tax filers.