Section 1 Short title
This Act may be cited as the “Empowering Families at Home and at Work Act”.
Empowering Families at Home and at Work Act
A BILL
To amend the Internal Revenue Code of 1986 to provide a deduction relating to the compensation of the lesser earning spouse.
Sec. 2 Deduction for lesser earning spouse
In general— Part VII of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:
“224. Second earner deduction
“(a) Allowance of deduction—In the case of a taxpayer who files a joint return for the taxable year, there shall be allowed as a deduction an amount equal to 20 percent of the total compensation of the lesser earning spouse.
“(b) Limitations
“(1) Compensation taken into account—The amount of compensation taken into account under subsection (a) for the taxable year shall not exceed $60,000.
“(2) Limitation based on income—The amount allowed as a deduction under subsection (a) shall be zero if the adjusted gross income of the taxpayer for the taxable year exceeds $110,000.
“(c) Compensation—For purposes of this section, the term compensation means the sum of—
“(1) wages (as defined in section 3121), and
“(2) self-employment income (as defined in section 1402).”
Deduction allowed above-the-Line— Subsection (a) of section 62 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:
“(22) Second earner deduction—The deduction allowed by section 224.”
Clerical amendment— The table of sections for part VII of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 224 and by inserting the following new items:
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2014.