Working Families Childcare Access Act of 2021 or the WFCA Act of 2021
This bill allows certain additional expenses in a dependent care flexible spending arrangement (FSA), specifically qualified sports, tutoring, and music or art expenses. It also increases the eligibility age for dependent care benefits to 15, allows a carry forward of unused benefits to the next plan year, and increases to $15,000 the maximum amount of dependent care benefits excludible from employee gross income.
To amend the Internal Revenue Code of 1986 to allow for the inclusion 
 of additional expenses in dependent care FSAs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Working Families Childcare Access 
Act of 2021'' or the ``WFCA Act of 2021''.

SEC. 2. ADDITIONAL EXPENSES INCLUDED IN DEPENDENT CARE ASSISTANCE 
              PROGRAMS.

    (a) In General.--Section 129(e) of the Internal Revenue Code of 
1986 is amended--
            (1) in paragraph (1), by striking ``or provision of, 
        those'' and inserting ``or provision of, qualified adoption 
        expenses (within the meaning of section 137(d)), qualified 
        sports expenses, qualified tutoring expenses, qualifying art 
        expenses, or those'', and
            (2) by adding at the end the following new paragraphs:
            ``(10) Qualified sports expenses.--The term `qualified 
        sports expenses' means expenses paid or incurred for the 
        participation or instruction of a dependent in a program of 
        physical exercise or physical activity.
            ``(11) Qualified tutoring expenses.--The term `qualified 
        tutoring expenses' means expenses paid or incurred for the 
        participation or instruction of a dependent in virtual or in-
        person--
                    ``(A) individual academic tutoring, or
                    ``(B) small-group academic tutoring in a group of 
                four students or fewer.
            ``(12) Qualified art expenses.--The term `qualified art 
        expenses' means expenses paid or incurred for the participation 
        or instruction of a dependent in a program of music or art.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 3. DEPENDENT CARE EXPENSES ALLOWED FOR CHILDREN AND DEPENDENTS UP 
              TO AGE 15.

    (a) In General.--Section 129(e)(1) of the Internal Revenue Code of 
1986, as amended by section 1, is amended--
            (1) by striking ``or provision of, qualified adoption 
        expenses'' and inserting ``or provision of, with respect to a 
        qualifying individual, qualified adoption expenses'',
            (2) by striking ``The term'' and inserting the following:
                    ``(A) In general.--The term'', and
            (3) by adding at the end the following:
                    ``(B) Special rule.--For purposes of subparagraph 
                (A), the term `qualifying individual' has the meaning 
                given in paragraph (1) of section 21(b), except such 
                paragraph shall be applied by substituting `age 15' for 
                `age 13'.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 4. CARRY FORWARD OF UNUSED BENEFITS.

    (a) In General.--Section 129(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(10) Benefit carry forward rules.--
                    ``(A) In general.--A plan meets the requirements of 
                this paragraph if it provides for the automatic carry 
                forward from the close of a plan year to the succeeding 
                plan year of any aggregate unused contributions 
                totaling $20 or greater.
                    ``(B) Small balances.--For purposes of subparagraph 
                (A), if an eligible employee carries a balance of less 
                than $20 at the end of a plan year, such employee may 
                elect to carry forward such balance to the next plan 
                year or, if such employee makes no election, such 
                balance may be forfeited.
                    ``(C) Exclusion from gross income.--No amount shall 
                be included in gross income under this chapter by 
                reason of any carry forward under this paragraph.
                    ``(D) Coordination limits.--The maximum amount 
                which may be contributed to a dependent care assistance 
                flexible spending arrangement for any year to which an 
                unused amount is carried under this paragraph shall not 
                be reduced by such unused amount.''.
    (b) Conforming Amendment.--Section 125(d)(2) of such Code is 
amended by adding at the end the following new subparagraph:
                    ``(E) Exception for dependent care assistance 
                flexible spending arrangements.--Subparagraph (A) shall 
                not apply to a dependent care assistance flexible 
                spending arrangement which conforms to the benefit 
                carry forward rules of section 129(d)(10).''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2021.

SEC. 5. INCREASE OF BENEFITS FOR DEPENDENT CARE ASSISTANCE PROGRAMS.

    (a) In General.--Section 129(a)(2)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``$5,000 ($2,500'' and inserting 
``$15,000 ($7,500''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2021.
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Working Families Childcare Access Act of 2021
To amend the Internal Revenue Code of 1986 to allow for the inclusion of additional expenses in dependent care FSAs, and for other purposes.
Working Families Childcare Access Act of 2021
Rep. Walorski, Jackie