1. Above-the-line deduction for child care expenses (a) In general Part VII of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended— (1) by redesignating section 224 as section 225, and (2) by inserting after section 223 the following new section: 224. Child care deduction (a) Allowance of deduction In the case of an individual for which there are 1 or more qualifying children with respect to such individual for the taxable year, there shall be allowed as a deduction an amount equal to the employment-related expenses paid by such individual during the taxable year. (b) Dollar limitations (1) In general The amount allowed as a deduction under subsection (a) with respect to the taxpayer for any taxable year shall not exceed— (A) $7,000, if there is 1 qualifying child with respect to the taxpayer for such taxable year, or (B) $14,000, if there are 2 or more qualifying children with respect to the taxpayer for such taxable year. (2) Adjustment for inflation In the case of a taxable year beginning after 2017, each of the dollar amounts in paragraph (1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2016 for calendar year 1992 in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next highest multiple of $100. (c) Definitions and special rules For purposes of this section— (1) Qualifying child The term qualifying child means a dependent of the taxpayer (as defined in section 152(a)(1))— (A) who has not attained age 13, or (B) who is physically or mentally incapable of caring for himself or herself. (2) Employment-related expenses The term employment-related expenses has the meaning given such term by section 21(b)(2), applied as if the terms qualifying child and qualifying children , within the meaning of this