S. 2497Senate116th Congress (2019-2021)In Committee

Dependent Income Exclusion Act of 2019

Introduced September 18, 2019

AI-Generated Summary

Updated April 14, 2026 at 8:07 AM UTC

The Dependent Income Exclusion Act of 2019 changes the tax rules so that certain earnings of a taxpayer’s dependents are not counted when figuring the income level used to determine eligibility for health‑insurance premium tax credits. It applies to younger dependents and to older dependents who are students, in job‑training, apprenticeship, or similar programs. The change is meant to help families qualify for subsidies under the Affordable Care Act.

Key Provisions

  • Excludes wages and net self‑employment earnings of dependents who are under 18, or under 24 and enrolled full‑ or part‑time in school, a qualified job‑training program, or a registered apprenticeship, from the taxpayer’s modified adjusted gross income for premium tax credit calculations.
  • The exclusion cannot exceed 15% of the taxpayer’s modified adjusted gross income.
  • For families living in states that have not expanded Medicaid, the exclusion cannot lower household income below 100% of the federal poverty level for the family size.
  • Updates related tax code sections to reflect the new exclusion and adds a reporting requirement for insurers to provide information about the excluded dependent income.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

September 18, 2019

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SenateIntro Referral

Introduced in Senate

September 18, 2019

SenateIntro Referral

Read twice and referred to the Committee on Finance.

September 18, 2019

Floor Debate

6 members

What members said about S. 2497 on the floor

3 Republicans3 Democrats
Chris Van Hollen
Sen. Chris Van HollenD-MD · Feb 6, 2019

Mr. President, I come to the Senate floor today with a sense of great disappointment, disappointment in what my colleague, the senior Senator from Florida and the Republican leader have done with the…

Chris Van Hollen
Sen. Chris Van HollenD-MD · Jan 29, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I come to the Senate floor today with a sense of great disappointment--disappointment in what my…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jan 29, 2019

Madam President, hundreds of thousands of Federal workers are, thank God, returning to work this week to tackle a backlog that has been building for over a month. Over that time, the U.S. economy…

Mitch McConnell
Sen. Mitch McConnellR-KY · Jan 29, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, yesterday afternoon, Senate Democrats finally dropped their filibuster of S. 1, the…

John Thune
Sen. John ThuneR-SD · Jan 29, 2019

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, for weeks, Democrats repeated the same refrain: Open the government, and we will negotiate…

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Tammy Duckworth
Sen. Tammy DuckworthD-IL · Feb 6, 2019

Mr. President, while the Strengthening America's Security in the Middle East Act is clearly far from perfect, the majority of the legislation addresses several key priorities that are particularly…

Rick Scott
Sen. Rick ScottR-FL · Jan 29, 2019

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Bill Text

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Introduced in SenateIssued September 18, 2019

II

116th CONGRESS

1st Session

S. 2497

IN THE SENATE OF THE UNITED STATES

September 18, 2019

Ms. Cortez Masto (for herself, Mr. Brown, and Ms. Rosen) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to exclude certain dependent income when calculating modified adjusted gross income for the purposes of eligibility for premium tax credits.

1.

Short title

This Act may be cited as the Dependent Income Exclusion Act of 2019.

2.

Exclusion of certain dependent income for purposes of premium tax credit

(a)

In general

Paragraph (2) of section 36B(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(C)

Exception for certain dependent income

(i)

In general

There shall not be taken into account under subparagraph (A)(ii) any wages (determined under section 3401(a)) or net earnings from self-employment (as defined in section 1402(a)) of any dependent of the taxpayer who—

(I)

has not attained age 18 as of the last day of the calendar year in which the taxable year of the taxpayer begins, or

(II)

has not attained age 24 as of the last day of such calendar year and, during each of 5 calendar months during such calendar year, is described in subparagraph (A) or (B) of section 152(f)(2) (applied by substituting part-time or full-time for full-time each place it appears, and by deeming any for-profit educational institution not to be an educational organization described in section 170(b)(1)(A)(ii)), is participating in a qualified job-training program, or is participating in an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).

(ii)

Qualified job-training program

For purposes of this subparagraph, the term qualified job-training program means any program of training services described in section 134(c)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)).

(iii)

Limitation

Clause (i) shall not apply to so much of the aggregate income of all dependents of the taxpayer as exceeds an amount equal to 15 percent of the modified adjusted gross income of the taxpayer.

(iv)

Taxpayers residing in Medicaid non-expansion States

In the case of a taxpayer residing in a State which (as of the first day of the taxable year) does not provide for eligibility under clause (i)(VIII) or (ii)(XX) of section 1902(a)(10)(A) of the Social Security Act for medical assistance under title XIX of such Act (or a waiver of the State plan approved under section 1115 of the Social Security Act), clause (i) shall apply to any dependent of such taxpayer only to the extent that the application of such clause would not reduce the household income below 100 percent of the amount equal to the poverty line for a family of the size involved.

.

(b)

Conforming amendments

(1)

Clause (ii) of section 36B(d)(2)(A) of the Internal Revenue Code of 1986 is amended by inserting , except as provided in subparagraph (C), after individuals.

(2)

Paragraph (3) of section 1411(b) of the Patient Protection and Affordable Care Act (42 U.S.C. 18081) is amended by adding at the end the following new subparagraph:

(D)

Information regarding certain dependents

Information regarding whether section 36B(d)(2)(C) will apply to any individuals taken into account as members of the household of the enrollee, and the amount of income from employment of each such individual for the taxable year described in subparagraph (A).

.

(c)

Effective date

The amendments made by this section shall apply to credits allowed under section 36B of the Internal Revenue Code of 1986 for, and advance payments of credits under section 1412 of the Patient Protection and Affordable Care Act with respect to, taxable years beginning after the date of the enactment of this Act.