A bill to amend the Internal Revenue Code of 1954 to provide that social security taxes and income tax withholding shall not apply to certain chore service performed under a State program designed to assist the elderly and the handicapped.

Amends the Internal Revenue Code and the Social Security Act to provide that social security taxes and income tax withholding shall not apply to chore service performed by an individual under an arrangement with a State program if: (1) only individuals over 65, or handicapped individuals, are eligible to receive such service; (2) such service consists only of housework, yardwork, meal preparation, or minor house repairs at the home of the recipient of the service or errands for food, clothing, medicine, or paying bills; and (3) 80 percent or more of such chore services for the calendar year can reasonably be expected to be performed by individuals putting in a maximum average of 20 hours per week.

Treats such chore service as a trade or business, rather than as employment.