article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Caring Family Act of 2003''. SEC. 2. ADDITIONAL PERSONAL EXEMPTION FOR DEPENDENTS WITH LONG-TERM CARE NEEDS IN TAXPAYER'S HOME. (a) In General.--Section 151 of the Internal Revenue Code of 1986 (relating to allowance of deductions for personal exemptions) is amended by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and by inserting after subsection (c) the following new subsection: ``(d) Additional Exemption for Dependents With Long-Term Care Needs in Taxpayer's Home.-- ``(1) In general.--An exemption of the applicable amount for each qualified family member of the taxpayer. ``(2) Applicable amount.--For purposes of paragraph (1), the applicable amount is the amount determined in accordance with the following table: ``For taxable years beginning The applicable in calendar year-- applicable amount is-- 2003 and 2004................................. $500 2005 and 2006................................. 1,000 2007 and 2008................................. 1,500 2009 and 2010................................. 2,000 2011 and 2012................................. 2,500 2013 and thereafter........................... 0. ``(3) Qualified family member.--For purposes of this subsection, the term `qualified family member' means, with respect to any taxable year, any individual-- ``(A) who is-- ``(i) the spouse of the taxpayer, or ``(ii) a dependent of the taxpayer with respect to whom the taxpayer is entitled to an exemption under subsection (c), ``(B) who has attained age 60 before the close of the taxable year, ``(C) who is an individual with long-term care needs, and ``(D) who, for more than one-half of the taxable year, has as such individual's principal place of abode the home of the taxpayer and is a member of the taxpayer's household. ``(4) Individuals with long-term care needs.--For purposes of this subsection, the term `individual with long-term care needs' means, with respect to any taxable year, an individual who has been certified during such year by a physician (as defined in section 1861(r)(1) of the Social Security Act) as being, for a period of at least 180 consecutive days which includes the date of the certification-- ``(A) an individual who is unable to perform (without substantial assistance from another individual) at least 2 activities of daily living (as defined in section 7702B(c)(2)(B)) due to a loss of functional capacity, or ``(B) an individual who requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment and is unable to perform, without reminding or cuing assistance, at least 1 activity of daily living (as so defined) or to the extent provided in regulations prescribed by the Secretary (in consultation with the Secretary of Health and Human Services), is unable to engage in age appropriate activities. ``(5) Identification requirement.-- ``(A) In general.--No exemption shall be allowed under this subsection to a taxpayer with respect to any qualified family member unless the taxpayer includes on the return of tax for the taxable year-- ``(i) the name and TIN of such member, and ``(ii) the name and TIN of the physician certifying such member. ``(B) Exception for due diligence.--In the case of a failure to provide the information required under subparagraph (A)(ii), such subparagraph shall not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information so required. ``(6) Special rules.--Rules similar to the rules of paragraphs (2), (3), and (4) of section 21(e) shall apply for purposes of this subsection.''. (b) Conforming Amendments.-- (1) Section 1(f)(6)(A) of such Code is amended by striking ``151(d)(4)'' and inserting ``151(e)(4)''. (2) Section 1(f)(6)(B) of such Code, as amended by the Economic Growth and Tax Relief Reconciliation Act of 2001, is amended by striking ``151(d)(3)(A)'' and inserting ``151(e)(3)(A)''. (3) Section 1(f)(6)(B) of such Code, as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, is amended by striking ``151(d)(4)(A)'' and inserting ``151(e)(4)(A)''. (4) Section 3402(f)(1)(A) of such Code is amended by striking ``151(d)(2)'' and inserting ``151(e)(2)''. (5) Section 3402(r)(2)(B) of such Code is amended by striking ``151(d)'' and inserting ``151(e)''. (6) Section 6012(a)(1)(D)(ii) of such Code is amended-- (A) by striking ``151(d)'' and inserting ``151(e)'', and (B) by striking ``151(d)(2)'' and inserting ``151(e)(2)''. (7) Section 6013(b)(3)(A) of such Code is amended by striking ``151(d)'' and inserting ``151(e)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.
summary: Caring Family Act of 2003 - Amends the Internal Revenue Code to allow an additional exemption for dependents, residing with the taxpayer, with long-term care needs who are over the age of 60.