New Bill Offers $200 Tax Credit for Youth Sports Equipment, Phases Out for Higher Earners

This proposed legislation, the "Home Run for Kids Act," introduces a new federal tax credit aimed at helping families cover the costs of youth sports gear. Specifically, Section 2 outlines a non-refundable credit of up to $200 per taxpayer for money spent on equipment for a dependent child under 19 participating in an "organized sport, game, or hobby program." Think new soccer cleats, a baseball glove, or hockey pads – if it's for an organized activity, it could qualify.

The Fine Print on Fielding Expenses

So, how does this actually work for your family budget? The $200 cap is per taxpayer, not per child. If you're filing taxes, you could potentially claim this credit against what you owe. However, there's an income catch. The full credit is available to those with a modified adjusted gross income (MAGI) up to $150,000. After that, the credit amount starts to decrease, phasing out completely for those with a MAGI of $215,000 or more. This means the benefit is targeted primarily at middle-income households. While it could take some sting out of buying that new equipment each season, families earning above the threshold won't see any savings from this specific credit. It also assumes families can cover the upfront costs of league fees and equipment before seeing any potential tax benefit months later.