A bill to provide a deduction for employment expenses which are incurred by the taxpayer for the care of certain individuals in the home or in a dependent care center if such care is necessary for the gainful employment of the taxpayer or a member of the household of which any such individual is a member.

Amends the Internal Revenue Code to allow an income tax deduction for employment expenses incurred by the taxpayer for the care of children or handicapped individuals in the home or in a dependent care center if such care is necessary for the gainful employment of the taxpayer or a member of the household of which any such individual is a member. Limits the amount of the deductible home care expenses to $10,000 for one individual requiring care, and $15,000 for two or more such individuals. Limits the amount of the deductible dependent care center expenses to $5,000 for one individual, and $7,500 for two or more individuals.

Sets forth rules relating to the deduction of employment expenses for dependent care in joint-employment agreement and shared-expense agreement situations.

Provides that if a taxpayer elects the employment expense deduction for certain amounts, such amounts are not allowable for the dependent care credit or the medical expense deduction.