Sponsors (3)
The bill makes child enrichment programs more affordable for qualifying lower- and middle-income families by creating a $5,000 deduction indexed for inflation, but excludes higher‑income households, imposes administrative burdens, and reduces federal revenue that could increase deficits or require offsets.
Parents and families with MAGI below the specified thresholds can deduct up to $5,000 per year for eligible youth program costs (tutoring, athletics, arts, equipment, digital platforms), lowering out-of-pocket costs for child enrichment.
The deduction cap and MAGI eligibility thresholds are indexed for inflation (COLA), preserving the real value of the benefit over time.
Households with MAGI above the thresholds (including some higher‑cost but middle-income and many higher‑earning households) are excluded from the deduction and receive no relief for youth program costs.
The deduction reduces federal tax revenue, which could increase deficits or force future tax increases or spending cuts to offset the cost.
The IRS must define eligible programs in consultation with the Department of Education and administer the deduction, creating administrative complexity and additional compliance burden for families and agencies.
Based on analysis of 2 sections of legislative text.
Creates a new federal deduction of up to $5,000 per year for qualifying youth program expenses for dependents under age 19, subject to MAGI phaseouts.
Creates a new federal tax deduction that lets taxpayers deduct up to $5,000 per year for qualified youth program expenditures for dependents under age 19. The deduction phases out for higher earners and is not available for dependents already claimed by another taxpayer. The deduction covers costs for tutoring/academic enrichment, athletics, arts, equipment, training, digital platforms, and similar programs as defined by Treasury in consultation with the Secretary of Education; it takes effect for tax years beginning after December 31, 2026 and includes cost‑of‑living adjustments after 2027.
Official title: To amend the Internal Revenue Code of 1986 to establish a deduction for qualified youth program expenditures.
Introduced June 24, 2026 by Shomari C. Figures · Last progress June 24, 2026