PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1565
of caring for himself receives over half of his support during the calendar year from his parents who a r e divorced or legally separated under a decree of divorce or separate maintenance or who a r e separated under a written separation agreement, and " (B) such child is i n the custody of one or both of his p a r e n t s for more than one-half of the calendar year, in the case of any taxable year beginning i n such calendar year such child shall be treated as being a qualifying individual described in subparagraph (A) or (B) of subsection (c)(1), as the case may be, with respect to that p a r e n t who has custody for a longer period during such calendar year than the other parent, and shall not be treated as being a qualifying individual with respect to such other parent. "(6)
P A Y M E X T S TO RELATED INDIVIDUALS.—
" (A) IN GENERAL.—Except as provided in subparagraph (B), no credit shall be allowed under subsection (a) for any amount paid by the tax p a y e r to an individual bearing a relationship to the taxpayer described in paragraph s (1) through (8) of section 152(a) (relating to definition of dependent) or to a dependent described in paragraph (9) of such section. " (B) EXCEPTION. — Subparagraph (A) shall not apply to any amount p a i d by the tax p a y e r to an individual with respect to whom, for the taxable year of the tax p a y e r in which the service is performed, neither the tax p a y e r n o r his spouse is entitled to a deduction under section 151(e) (relating to deduction for personal exemptions for dependents), but only if the service with respect to which such amount is paid constitutes employment within the meaning of section 3121(b). " (7) STUDENT.—The term 'student' means an individual who 'Student." during each of 5 calendar months during the taxable year is a full-time student a t an educational organization. " (8) EDUCATIONAL ORGANIZATION.—The term 'educational orga-
nization' means an educational organization described in section 170(b)(1)(A) (ii). ' (g) EEGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section."
"Educational organization."
(2) CLERICAL AMENDMENT. — The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by inserting before the item relating to section 45 the following new item: "Sec. 44A. Expenses for household and dependent care services necessary for gainful employment." (b) E E P E A L OF DEDUCTION FOR C H I L D CARE E X P E N S E S. —
(1) IN GENERAL.—Section 214 (relating to expenses for house- 26 USC 214. hold and dependent care services necessary for gainful employment) is hereby repealed. (2) CLERICAL AMENDMENT.—The table of sections for part VII
of subchapter B of chapter 1 is amended by striking out the item relating to section 214. (c) T E C H N I C A L AMENDMENTS. —
(1) Section 213(f) (relating to exclusion of amounts allowed 26 USC 213. for care of certain dependents) is amended by striking o u t " a deduction under section 214" and inserting in lieu thereof "a Ante, p. 1563. credit under section 44A". (2) Section 6096(b) (defining income tax liability) is amended 26 USC 6096. by striking out " and 44" and inserting i n lieu thereof ", 44, and 44A". ' '
89-194 O—78—pt. 2
jT
�
