A bill to amend the Internal Revenue Code of 1954 to remove certain limitations on the amount of the deduction allowed for household and dependent care services necessary for gainful employment, to liberalize the gainful employment requirement for such deduction, to allow an individual to take such deduction whether or not the individual itemizes his deductions.

Increases the amount of the deduction allowed under the Internal Revenue Code for household and dependent care services necessary for gainful employment to the amount of the earned income of the taxpayer or his spouse, whichever is lesser. Provides that when one spouse is a student, the earned income limitation amount shall be that of the other spouse. Allows an individual to take such deduction whether or not the individual itemizes his deductions.