AB 1304

Bill Subjects

Abstract

The Personal Income Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law establishes certain tax-advantaged savings accounts, including the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act) , which encourages and assists individuals and families to save private funds in a tax-advantaged savings account for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. This bill would create the CalKIDS Savings Trust Fund, administered by the State Department of Social Services, and savings accounts within that fund for each beneficiary for the purpose of encouraging and earmarking savings for the costs of child care, including, but not limited to, the costs of before and after school care. The bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income the moneys deposited in a CalKIDS savings account.