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Internal Revenue Code, § 32. Earned Income

I.R.C. § 32(a) Allowance Of Credit
I.R.C. § 32(a)(1) In General
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed the earned income amount.
I.R.C. § 32(a)(2) Limitation
The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the excess (if any) of—
I.R.C. § 32(a)(2)(A)
the credit percentage of the earned income amount, over
I.R.C. § 32(a)(2)(B)
the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount.
I.R.C. § 32(b) Percentages And Amounts
For purposes of subsection (a)
I.R.C. § 32(b)(1) Percentages
The credit percentage and the phaseout percentage shall be determined as follows:
 

In the case of an eli-            The credit                The phaseout
gible individual with:          percentage is:             percentage is:

1 qualifying child                   34                        15.98
2 qualifying children                40                        21.06
3 or more qualifying                 45                        21.06
  children

No qualifying                         7.65                      7.65
  children
I.R.C. § 32(b)(2) Amounts
I.R.C. § 32(b)(2)(A) In General
Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined as follows:
 

In the case of an eli-    The earned income    The phaseout amount
gible individual with:    amount is:           is:

1 qualifying child           $6,330               $11,610
2 or more qualifying         $8,890               $11,610
   children
No qualifying                $4,220                $5,280
   children
I.R.C. § 32(b)(2)(B) Joint Returns
In the case of a joint return filed by an eligible individual and such individual's spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000.
I.R.C. § 32(c) Definitions And Special Rules
For purposes of this section—
I.R.C. § 32(c)(1) Eligible Individual
I.R.C. § 32(c)(1)(A) In General
The term “eligible individual” means
I.R.C. § 32(c)(1)(A)(i)
any individual who has a qualifying child for the taxable year, or
I.R.C. § 32(c)(1)(A)(ii)
any other individual who does not have a qualifying child for the taxable year, if—
I.R.C. § 32(c)(1)(A)(ii)(I)
such individual's principal place of abode is in the United States for more than one-half of such taxable year,
I.R.C. § 32(c)(1)(A)(ii)(II)
such individual (or, if the individual is married, either the individual or the individual's spouse) has attained age 25 but not attained age 65 before the close of the taxable year, and
I.R.C. § 32(c)(1)(A)(ii)(III)
such individual is not a dependent for whom a deduction is allowable under section 151 to another taxpayer for any taxable year beginning in the same calendar year as such taxable year.
For purposes of the preceding sentence, marital status shall be determined under section 7703.
I.R.C. § 32(c)(1)(B) Qualifying Child Ineligible
If an individual is the qualifying child of a taxpayer for any taxable year of such taxpayer beginning in a calendar year, such individual shall not be treated as an eligible individual for any taxable year of such individual beginning in such calendar year.
I.R.C. § 32(c)(1)(C) Exception For Individual Claiming Benefits Under Section 911
The term “eligible individual” does not include any individual who claims the benefits of section 911 (relating to citizens or residents living abroad) for the taxable year.
I.R.C. § 32(c)(1)(D) Limitation On Eligibility Of Nonresident Aliens
The term “eligible individual” shall not include any individual who is a nonresident alien individual for any portion of the taxable year unless such individual is treated for such taxable year as a resident of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013.
I.R.C. § 32(c)(1)(E) Identification Number Requirement
No credit shall be allowed under this section to an eligible individual who does not include on the return of tax for the taxable year—
I.R.C. § 32(c)(1)(E)(i)
such individual's taxpayer identification number, and
I.R.C. § 32(c)(1)(E)(ii)
if the individual is married (within the meaning of section 7703), the taxpayer identification number of such individual's spouse.
I.R.C. § 32(c)(1)(F) Individuals Who Do Not Include TIN, Etc., Of Any Qualifying Child
No credit shall be allowed under this section to any eligible individual who has one or more qualifying children if no qualifying child of such individual is taken into account under subsection (b) by reason of paragraph (3)(D).
I.R.C. § 32(c)(2) Earned Income
I.R.C. § 32(c)(2)(A)
The term “earned income” means—
I.R.C. § 32(c)(2)(A)(i)
wages, salaries, tips, and other employee compensation, but only if such amounts are includible in gross income for the taxable year, plus
I.R.C. § 32(c)(2)(A)(ii)
the amount of the taxpayer's net earnings from self-employment for the taxable year (within the meaning of section 1402(a)), but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f).
I.R.C. § 32(c)(2)(B)
For purposes of subparagraph (A)
I.R.C. § 32(c)(2)(B)(i)
the earned income of an individual shall be computed without regard to any community property laws,
I.R.C. § 32(c)(2)(B)(ii)
no amount received as a pension or annuity shall be taken into account,
I.R.C. § 32(c)(2)(B)(iii)
no amount to which section 871(a) applies (relating to income of nonresident alien individuals not connected with United States business) shall be taken into account,
I.R.C. § 32(c)(2)(B)(iv)
no amount received for services provided by an individual while the individual is an inmate at a penal institution shall be taken into account,
I.R.C. § 32(c)(2)(B)(v)
no amount described in subparagraph (A) received for service performed in work activities as defined in paragraph (4) or (7) of section 407(d) of the Social Security Act to which the taxpayer is assigned under any State program under part A of title IV of such Act shall be taken into account, but only to the extent such amount is subsidized under such State program, and
I.R.C. § 32(c)(2)(B)(vi)
a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.
I.R.C. § 32(c)(3) Qualifying Child
I.R.C. § 32(c)(3)(A) In General
The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c), determined without regard to paragraph (1)(D) thereof and section 152(e)).
I.R.C. § 32(c)(3)(B) Married Individual
The term “qualifying child” shall not include an individual who is married as of the close of the taxpayer's taxable year unless the taxpayer is entitled to a deduction under section 151 for such taxable year with respect to such individual (or would be so entitled but for section 152(e)).
I.R.C. § 32(c)(3)(C) Place Of Abode
For purposes of subparagraph (A), the requirements of section 152(c)(1)(B) shall be met only if the principal place of abode is in the United States.
I.R.C. § 32(c)(3)(D) Identification Requirements
I.R.C. § 32(c)(3)(D)(i) In General
A qualifying child shall not be taken into account under subsection (b) unless the taxpayer includes the name, age, and TIN of the qualifying child on the return of tax for the taxable year.
I.R.C. § 32(c)(3)(D)(ii) Other Methods
The Secretary may prescribe other methods for providing the information described in clause (i).
I.R.C. § 32(c)(4) Treatment Of Military Personnel Stationed Outside The United States
For purposes of paragraphs (1)(A)(ii)(I) and (3)(C), the principal place of abode of a member of the Armed Forces of the United States shall be treated as in the United States during any period during which such member is stationed outside the United States while serving on extended active duty with the Armed Forces of the United States. For purposes of the preceding sentence, the term “extended active duty” means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
I.R.C. § 32(d) Married Individuals
In the case of an individual who is married (within the meaning of section 7703), this section shall apply only if a joint return is filed for the taxable year under section 6013.
I.R.C. § 32(e) Taxable Year Must Be Full Taxable Year
Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months.
I.R.C. § 32(f) Amount Of Credit To Be Determined Under Tables
I.R.C. § 32(f)(1) In General
The amount of the credit allowed by this section shall be determined under tables prescribed by the Secretary.
I.R.C. § 32(f)(2) Requirements For Tables
The tables prescribed under paragraph (1) shall reflect the provisions of subsections (a) and (b) and shall have income brackets of not greater than $50 each—
I.R.C. § 32(f)(2)(A)
for earned income between $0 and the amount of earned income at which the credit is phased out under subsection (b), and
I.R.C. § 32(f)(2)(B)
for adjusted gross income between the dollar amount at which the phaseout begins under subsection (b) and the amount of adjusted gross income at which the credit is phased out under subsection (b).
I.R.C. § 32(g) Coordination With Advance Payments Of Earned Income Credit
[Struck by Pub. L. 111-226, §219(a)(1).]
I.R.C. § 32(h) Reduction Of Credit To Taxpayers Subject To Alternative Minimum Tax
[Repealed by Pub. L. 107-16, §303(c).]
I.R.C. § 32(i) Denial Of Credit For Individuals Having Excessive Investment Income
I.R.C. § 32(i)(1) In General
No credit shall be allowed under subsection (a) for the taxable year if the aggregate amount of disqualified income of the taxpayer for the taxable year exceeds $2,200.
I.R.C. § 32(i)(2) Disqualified Income
For purposes of paragraph (1), the term “disqualified income” means—
I.R.C. § 32(i)(2)(A)
interest or dividends to the extent includible in gross income for the taxable year,
I.R.C. § 32(i)(2)(B)
interest received or accrued during the taxable year which is exempt from tax imposed by this chapter,
I.R.C. § 32(i)(2)(C)
the excess (if any) of—
I.R.C. § 32(i)(2)(C)(i)
gross income from rents or royalties not derived in the ordinary course of a trade or business, over
I.R.C. § 32(i)(2)(C)(ii)
the sum of—
I.R.C. § 32(i)(2)(C)(ii)(I)
the deductions (other than interest) which are clearly and directly allocable to such gross income, plus
I.R.C. § 32(i)(2)(C)(ii)(II)
interest deductions properly allocable to such gross income,
I.R.C. § 32(i)(2)(D)
the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and
I.R.C. § 32(i)(2)(E)
the excess (if any) of—
I.R.C. § 32(i)(2)(E)(i)
the aggregate income from all passive activities for the taxable year (determined without regard to any amount included in earned income under subsection (c)(2) or described in a preceding subparagraph), over
I.R.C. § 32(i)(2)(E)(ii)
the aggregate losses from all passive activities for the taxable year (as so determined).
For purposes of subparagraph (E), the term “passive activity” has the meaning given such term by section 469.
I.R.C. § 32(j) Inflation Adjustments
I.R.C. § 32(j)(1) In General
In the case of any taxable year beginning after 2015, each of the dollar amounts in subsections (b)(2) and (i)(1) shall be increased by an amount equal to—
I.R.C. § 32(j)(1)(A)
such dollar amount, multiplied by
I.R.C. § 32(j)(1)(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) thereof—
I.R.C. § 32(j)(1)(B)(i)
in the case of amounts in subsections (b)(2)(A) and (i)(1), “calendar year 1995” for “calendar year 2016”, and
I.R.C. § 32(j)(1)(B)(ii)
in the case of the $5,000 amount in subsection (b)(2)(B), “calendar year 2008” for “calendar year 2016”.
I.R.C. § 32(j)(2) Rounding
I.R.C. § 32(j)(2)(A) In General
If any dollar amount in subsection (b)(2)(A) (after being increased under subparagraph (B) thereof), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.
I.R.C. § 32(j)(2)(B) Disqualified Income Threshold Amount
If the dollar amount in subsection (i)(1), after being increased under paragraph (1), is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.
I.R.C. § 32(k) Restrictions On Taxpayers Who Improperly Claimed Credit In Prior Year
I.R.C. § 32(k)(1) Taxpayers Making Prior Fraudulent Or Reckless Claims
I.R.C. § 32(k)(1)(A) In General
No credit shall be allowed under this section for any taxable year in the disallowance period.
I.R.C. § 32(k)(1)(B) Disallowance Period
For purposes of paragraph (1), the disallowance period is—
I.R.C. § 32(k)(1)(B)(i)
the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this section was due to fraud, and
I.R.C. § 32(k)(1)(B)(ii)
the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).
I.R.C. § 32(k)(2) Taxpayers Making Improper Prior Claims
In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.
I.R.C. § 32(l) Coordination With Certain Means-Tested Programs
For purposes of—
I.R.C. § 32(l)(1)
the United States Housing Act of 1937,
I.R.C. § 32(l)(2)
title V of the Housing Act of 1949,
I.R.C. § 32(l)(3)
section 101 of the Housing and Urban Development Act of 1965,
I.R.C. § 32(l)(4)
sections 221(d)(3), 235, and 236 of the National Housing Act, and
I.R.C. § 32(l)(5)
the Food and Nutrition Act of 2008,
any refund made to an individual (or the spouse of an individual) by reason of this section shall not be treated as income (and shall not be taken into account in determining resources for the month of its receipt and the following month).
I.R.C. § 32(m) Identification Numbers
Solely for purposes of subsections (c)(1)(E) and (c)(3)(D), a taxpayer identification number means a social security number issued to an individual by the Social Security Administration (other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act) on or before the due date for filing the return for the taxable year.
I.R.C. § 32(n) Supplemental Child Credit
[Struck by Pub. L. 107-16, §201(c)(3).]
(Added by Pub. L. 94-12, title II, Sec. 204(a), Mar. 29, 1975, 89 Stat. 30, Sec. 43, and amended by Pub. L. 94-164, Sec. 2(c), Dec. 23, 1975, 89 Stat. 971; Pub. L. 94-455, title IV, Sec. 401(c)(1)(B), (2), Oct. 4, 1976, 90 Stat. 1557; Pub. L. 95-600, title I, Sec. 104(a)-(e), 105(a), Nov. 6, 1978, 92 Stat. 2772, 2773; Pub. L. 95-615, Sec. 202(g)(5), formerly Sec. 202(f)(5), Nov. 8, 1978, 92 Stat. 3100, redesignated and amended Pub. L. 96-222, title I, Sec. 101(a)(1), (2)(E), 108(a)(1)(A), Apr. 1, 1980, 94 Stat. 194, 195, 223; Pub. L. 97-34, title I, Sec. 111(b)(2), 112(b)(3), Aug. 13, 1981, 95 Stat. 194, 195; Pub. L. 98-21, title I, Sec. 124(c)(4)(B), Apr. 20, 1983, 97 Stat. 91; renumbered Sec. 32 and amended Pub. L. 98-369, div. A, title IV, Sec. 423(c)(3), 471(c), title X, Sec. 1042(a)-(d)(2), July 18, 1984, 98 Stat. 801, 826, 1043; Pub. L. 99-514, title I, Sec. 104(b)(1)(B), 111(a)-(d)(1), title XII, Sec. 1272(d)(4), title XIII, Sec. 1301(j)(8), Oct. 22, 1986, 100 Stat. 2104, 2107, 2594, 2658; Pub. L. 100-647, title I, Sec. 1001(c), 1007(g)(12), Nov. 10, 1988, 102 Stat. 3350, 3436; Pub. L. 101-508, title XI, Sec. 11101(d)(1)(B), 11111(a), (b), (e), Nov. 5, 1990, 104 Stat. 1388-405, 1388-408, 1388-412, 1388-413; Pub. L. 103-66, title XIII, Sec. 13131, Aug. 10, 1993, 107 Stat. 312; Pub. L. 103-465, title VII, Sec. 721(a), 722(a), 723(a), 742(a), Dec. 8, 1994; Apr. 11, 1995, Pub. L. 104-7, Sec. 4; Aug. 22, 1996, Pub. L. 104-193, Sec. 909, 910(c)(2), 451, 110 Stat. 2105; Pub. L. 105-34, title I, III, X, Sec. 101(b), 312(d)(2), 1085, Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Secs. 6003(b), 6005(e), 6010(p), 6021(b), July 22, 1998, 112 Stat. 685; Pub. L. 106-170, title V, Sec. 412(a), Dec. 17, 1999, 113 Stat. 1860; Pub. L. 107-16, title II, Sec. 202, title III, Sec. 303, June 7, 2001, 115 Stat. 38; Pub. L. 107-147, title IV, Sec. 416(a)(1), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-311, title I, II, Sec. 104(b), 205, Oct. 4, 2004, 118 Stat. 1166; Pub. L. 109-135, title III, Sec. 302(a), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-432, div. A, title I, Sec. 106, Dec. 20, 2006, 120 Stat. 2922; Pub. L. 110-245, Sec. 102(a), June 17, 2008, 122 Stat. 1624; Pub. L. 110-246, title IV, Sec. 4002(b)(1)(B), June 18, 2008, 122 Stat. 1651; Pub. L. 111-5, div. B, title I, Sec. 1002(a), Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-226, title II, Sec. 219(a)(2), Aug. 10, 2010; Pub. L. 111-312, title I, Sec. 103(c), Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title I, Sec. 103(c), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title II, Sec. 206(a), Sec. 221(a)(3), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 103, title II, Sec. 204, Dec. 18, 2015; Pub. L. 115-97, Sec. 11002(d)(1)(D), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title I, Sec. 101(a), title IV, Sec. 401(b)(4), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
PRIOR PROVISIONS
A prior section 32 was renumbered section 33 of this title.
AMENDMENTS
2018 - Subsec. (b)(2)(B). Pub. L. 115-141, Div. U, Sec. 101(a)(1)(B), amended subpar. (B) by substituting “(B) JOINT RETURNS.—“ for “(B) JOINT RETURNS.—(1) IN GENERAL.—In the case of a joint return”.
Subsec. (b)(2)(B)(ii). Pub. L. 115-141, Div. U, Sec. 101(a)(1)(A), struck clause (ii). Before being struck, it read as follows:
“(ii) Inflation Adjustment.—In the case of any taxable year beginning after 2015, the $5,000 amount in clause (i) shall be increased by an amount equal to—
“(I) such dollar amount, multiplied by
“(II) the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting “calendar year 2008” for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.”
Subsec. (b)(2)(B)(iii). Pub. L. 115-141, Div. U, Sec. 101(a)(1)(A), struck clause (iii). Before being struck, it read as follows:
“(iii) Rounding.—Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).”
Subsec. (j)(1). Pub. L. 115-141, Div. U, Sec. 101(a)(2)(A), amended par. (1) by substituting “after 2015” for “after 1996” in the matter preceding subpar. (A).
Subsec. (j)(1)(B). Pub. L. 115-141, Div. U, Sec. 101(a)(2)(B), amended subpar. (B) by inserting “by substituting in subparagraph (A)(ii) thereof” after “, determined”.
Subsec. (j)(1)(B)(i). Pub. L. 115-141, Div. U, Sec. 101(a)(2)(C), amended clause (i) by striking “by substituting” and “in subparagraph (A)(ii) thereof)”.
Subsec. (j)(1)(B)(ii). Pub. L. 115-141, Div. U, Sec. 101(a)(2)(D), amended clause (ii) by striking ‘‘by substituting’’ and ‘‘in subparagraph (A)(ii) of such section 1’’, by substituting “$5,000” for ‘‘$3,000’’, by substituting “(b)(2)(B)” for ‘‘(b)(2)(B)(iii)’’ and by substituting “2008” for ‘‘2007’’.
Subsec. (l). Pub. L. 115-141, Div. U, Sec. 401(b)(4), amended subsec. (l) by striking “, and any payment made to such individual (or such spouse) by an employer under section 3507,’’.
2017 - Subsec. (b)(2)(B)(ii)(II). Pub. L. 115-97, Sec. 11002(d)(1)(D), amended subclause (II) by substituting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for “for ‘calendar year 1992’ in subparagraph (B)’’.
Subsec. (j)(1)(B)(i). Pub. L. 115-97, Sec. 11002(d)(1)(D), amended clause (i) by substituting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for “for ‘calendar year 1992’ in subparagraph (B)’’.
Subsec. (j)(1)(B)(ii). Pub. L. 115-97, Sec. 11002(d)(1)(D), amended clause (ii) by substituting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for “for ‘calendar year 1992’ in subparagraph (B)’’.
2015 - Subsec. (b)(1). Pub. L. 114-113, Div. Q, Sec. 103(a), amended par. (1). Before amendment, it read as follows:
“(1) Percentages.—The credit percentage and the phaseout percentage shall be determined as follows:
 

In the case of an eli-            The credit                The phaseout
gible individual with:          percentage is:             percentage is:

1 qualifying child                   34                        15.98
2 or more qualifying                 40                        21.06
  children
No qualifying                         7.65                      7.65”
  children
Subsec. (b)(2)(B). Pub. L. 114-113, Div. Q, Sec. 103(b)(1), amended subpar. (B). Before being amended, it read as follows:
“(B) Joint Returns.—In the case of a joint return filed by an eligible individual and such individual's spouse, the phaseout amount determined under subparagraph (A) shall be increased by $3,000.”
Subsec. (b)(3). Pub. L. 114-113, Div. Q, Sec. 103(c), struck par. (3). Before being struck, it read as follows:
“(3) Special Rules For Certain Years.—In the case of any taxable year beginning after 2008 and before 2018—
“(A) Increased Credit Percentage For 3 Or More Qualifying Children.—In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent.
“(B) Reduction Of Marriage Penalty.—
“(i) In General.—The dollar amount in effect under paragraph (2)(B) shall be $5,000.
“(ii) Inflation Adjustment.—In the case of any taxable year beginning after 2009, the $5,000 amount in clause (i) shall be increased by an amount equal to—
“(I) such dollar amount, multiplied by
“(II) the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting “calendar year 2008” for “calendar year 1992” in subparagraph (B) thereof.
“(iii) Rounding Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).”
Subsec. (m). Pub. L. 114-113, Div. Q, Sec. 204(a), amended subsec. (m) by inserting ‘‘on or before the due date for filing the return for the taxable year’’ before the period at the end.
2014 - Subsec. (b)(1)(A)-(C). Pub. L. 113-295, Div. A, Sec. 221(a)(3)(A), amended par. (1) by striking subpar. (B) and (C) and by striking “(A) IN GENERAL.—In the case of taxable years beginning after 1995:” in subpar. (A) and moving the table 2 ems to the left. Before being struck, subpar. (B) and (C) read as follows:
“(B) Transitional Percentages For 1995.— In the case of taxable years beginning in 1995:
 

In the case of an eli-            The credit                The phaseout
gible individual with:          percentage is:             percentage is:

1 qualifying child                   34                          15.98

2 or more qualifying                 36                          20.22
  children
No qualifying                         7.65                        7.65
  children
(C) Transitional Percentages For 1994.—In the case of a taxable year beginning in 1994:
 

In the case of an            The credit                The phaseout
eligible individual          percentage                percentage is:
      with:                    is:

1 qualifying child             26.3                         15.98
2 or more                      30                           17.68
  qualifying
  children
No qualifying                   7.65                         7.65
  children”
Subsec. (b)(2)(B). Pub. L. 113-295, Div. A, Sec. 221(a)(3)(B), amended subpar. (B) by substituting “increased by $3,000” for “increased by—(i) $1,000 in the case of taxable years beginning in 2002, 2003, and 2004, (ii) $2,000 in the case of taxable years beginning in 2005, 2006, and 2007, and (iii) $3,000 in the case of taxable years beginning after 2007.”
Subsec. (b)(3)(B)(ii). Pub. L. 113-295, Div. A, Sec. 206(a), amended clause (ii) by substituting “after 2009” for “in 2010”.
2013 - Subsec. (b)(3). Pub. L. 112-240, Sec. 103(c), amended par. (3) by substituting “For Certain Years” for “For 2009, 2010, 2011, And 2012” in the heading and by substituting “after 2008 and before 2018” for “in 2009, 2010, 2011, or 2012” in the text.
2010 - Subsec. (b)(3). Pub. L. 111-312, Sec. 103(c), amended par. (3) by substituting “2009, 2010, 2011, And 2012” for “2009 And 2010” in the heading and substituting “, 2010, 2011, or 2012” for “or 2010” in the text.
Subsec. (g). Pub. L. 111-226, Sec. 219(a)(2), struck subsec. (g). Before being struck, it read as follows:
“(g) Coordination With Advanced Payments Of Earned Income Credit
“(1) Recapture of Excess Advanced Payments.—If any payment is made to the individual by an employer under section 3507 during any calendar year, then the tax imposed by this chapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.
“(2) Reconciliation Of Payments Advanced And Credit Allowed.—Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowable under this part.”
2009 - Subsec. (b)(3). Pub. L. 111-5, Div. B, Sec. 1002(a), added par. (3).
2008 - Subsec. (l)(5). Pub. L. 110-246, Sec. 4002(b)(1)(B), amended par. (5) by substituting “Food and Nutrition Act of 2008” for “Food Stamp Act of 1977”.
Subsec. (c)(2)(B)(vi). Pub. L. 110-245, Sec. 102(a), amended clause (vi). Before amendment, it read as follows:
“(vi) in the case of any taxable year ending-- (I) after the date of the enactment of this clause, and (II) before January 1, 2008, a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.”
2006 - Subsec. (c)(2)(B)(vi)(II). Pub. L. 109-432, Sec. 106(a), amended subclause (II) by substituting “2008” for “2007”.
2005 - Subsec. (c)(2)(B)(vi)(II). Pub. L. 109-135, Sec. 302(a), amended subclause (II) by substituting “January 1, 2007” for “January 1, 2006”.
2004 - Subsec. (c)(1)(C)-(G). Pub. L. 108-311, Sec. 205(b)(1), struck subpar. (C) and redesignated subpar. (D) - (G) as subpar. (C) - (F), respectively. Before it was struck, subpar. (C) read as follows:
“(C) 2 OR MORE CLAIMING QUALIFYING CHILD.--
“(i) IN GENERAL.--
Except as provided in clause (ii), if (but for this paragraph) an individual may be claimed, and is claimed, as a qualifying child by 2 or more taxpayers for a taxable year beginning in the same calendar year, such individual shall be treated as the qualifying child of the taxpayer who is--
“(I) a parent of the individual, or
“(II) if subclause (I) does not apply, the taxpayer with the highest adjusted gross income for such taxable year.
“(ii) MORE THAN 1 CLAIMING CREDIT.--
“If the parents claiming the credit with respect to any qualifying child do not file a joint return together, such child shall be treated as the qualifying child of--
“(I) the parent with whom the child resided for the longest period of time during the taxable year, or
“(II) if the child resides with both parents for the same amount of time during such taxable year, the parent with the highest adjusted gross income.”
Subsec. (c)(2)(B)(iv)-(vi). Pub. L. 108-311, Sec. 104(b), amended clause (iv) by striking “and” at the end, amended clause (v) by substituting “, and” for the period at the end, and added clause (vi).
Subsec. (c)(3). Pub. L. 108-311, Sec. 205(a), amended par. (3). Before amendment it read as follows:
“(3) QUALIFYING CHILD. --
“(A) IN GENERAL. --
“The term ‘qualifying child’ means, with respect to any taxpayer for any taxable year, an individual --
“(i) who bears a relationship to the taxpayer described in subparagraph (B),
“(ii) who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, and
“(iii) who meets the age requirements of subparagraph (C).
“(B) RELATIONSHIP TEST. --
“(i) IN GENERAL. --
“An individual bears a relationship to the taxpayer described in this subparagraph if such individual is --
“(I) a son, daughter, stepson, or stepdaughter, or a descendant of any such individual,
“(II) a brother, sister, stepbrother, or stepsister, or a descendant of any such individual, who the taxpayer cares for as the taxpayer's own child, or
“(III) an eligible foster child of the taxpayer.
“(ii) MARRIED CHILDREN. --
“Clause (i) shall not apply to any individual who is married as of the close of the taxpayer's taxable year unless the taxpayer is entitled to a deduction under section 151 for such taxable year with respect to such individual (or would be so entitled but for paragraph (2) or (4) of section 152(e)).
“(iii) ELIGIBLE FOSTER CHILD. --
“For purposes of clause (i), the term ‘eligible foster child’ means an individual not described in subclause (I) or (II) of clause (i) who --
“(I) is placed with the taxpayer by an authorized placement agency, and
“(II) the taxpayer cares for as the taxpayer's own child.
“(iv) ADOPTION. --
“For purposes of this subparagraph, a child who is legally adopted, or who is placed with the taxpayer by an authorized placement agency for adoption by the taxpayer, shall be treated as a child by blood.
“(C) AGE REQUIREMENTS. --
“An individual meets the requirements of this subparagraph if such individual --
“(i) has not attained the age of 19 as of the close of the calendar year in which the taxable year of the taxpayer begins,
“(ii) is a student (as defined in section 151(c)(4)) who has not attained the age of 24 as of the close of such calendar year, or
“(iii) is permanently and totally disabled (as defined in section 22(e)(3)) at any time during the taxable year.
“(D) IDENTIFICATION REQUIREMENTS. --
“(i) In general. --
“A qualifying child shall not be taken into account under subsection (b) unless the taxpayer includes the name, age, and TIN of the qualifying child on the return of tax for the taxable year.
“(ii) OTHER METHODS. --
“The Secretary may prescribe other methods for providing the information described in clause (i).
“(E) ABODE MUST BE IN THE UNITED STATES. --
“The requirements of subparagraph (A)(ii) shall be met only if the principal place of abode is in the United States.”
Subsec. (c)(4). Pub. L. 108-311, Sec. 205(b)(2), amended par. (4) by substituting “(3)(C)” for “(3)(E)”.
Subsec. (m). Pub. L. 108-311, Sec. 205(b)(3), amended subsec. (m) by substituting “subsections (c)(1)(E)” for “subsections (c)(1)(F)”.
2002 - Subsec. (g)(2). Pub. L. 107-147, Sec. 416(a)(1), amended par. (2) by substituting “part” for “subpart”.
2001 - Subsec. (a)(2)(B). Pub. L. 107-16, Sec. 303(d)(1), amended subpar. (B) by striking “modified” before “adjusted gross income”.
Subsec. (b)(2). Pub. L. 107-16, Sec. 303(a)(1), amended par. (2). Before amendment, it read as follows:
“(2) Amounts. --
“The earned income amount and the phaseout amount shall be determined as follows:
 

In the case of an eli-    The earned income    The phaseout amount
gible individual with:    amount is:           is:

1 qualifying child           $6,330               $11,610
2 or more qualifying         $8,890               $11,610
   children
No qualifying                $4,220                $5,280”
   children
Subsec. (c)(1)(C). Pub. L. 107-16, Sec. 303(f), amended subpar. (C). Before amendment it read as follows:
“(C) 2 OR MORE ELIGIBLE INDIVIDUALS. --
“If 2 or more individuals would (but for this subparagraph and after application of subparagraph (B)) be treated as eligible individuals with respect to the same qualifying child for taxable years beginning in the same calendar year, only the individual with the highest modified adjusted gross income for such taxable years shall be treated as an eligible individual with respect to such qualifying child.”
Subsec. (c)(2)(A)(i). Pub. L. 107-16, Sec. 303(b), amended clause (i) by inserting “, but only if such amounts are includible in gross income for the taxable year” after “other employee compensation”.
Subsec. (c)(3)(A)(ii). Pub. L. 107-16, Sec. 303(e)(2)(B), amended clause (ii) by striking “except as provided in subparagraph (B)(iii),” before “who has the same principal place”.
Subsec. (c)(3)(B)(i). Pub. L. 107-16, Sec. 303(e)(1), amended clause (i). Before amendment, it read as follows:
“(i) IN GENERAL. --
“An individual bears a relationship to the taxpayer described in this subparagraph if such individual is --
“(I) a son or daughter of the taxpayer, or a descendant of either,
“(II) a stepson or stepdaughter of the taxpayer, or
“(III) an eligible foster child of the taxpayer.”
Subsec. (c)(3)(B)(iii). Pub. L. 107-16, Sec. 303(e)(2)(A), amended clause (iii). Before amendment it read as follows:
“(iii) ELIGIBLE FOSTER CHILD. --
“For purposes of clause (i)(III), the term ‘eligible foster child’ means an individual not described in clause (i)(I) or (II) who --
“(I) is a brother, sister, stepbrother, or stepsister of the taxpayer (or a descendant of any such relative) or is placed with the taxpayer by an authorized placement agency,
“(II) the taxpayer cares for as the taxpayer's own child, and
“(III) has the same principal place of abode as the taxpayer for the taxpayer's entire taxable year.”
Subsec. (c)(3)(E). Pub. L. 107-16, Sec. 303(h), amended subpar. (E) by substituting “subparagraph (A)(ii)” for “subparagraph (A)(ii) and (B)(iii)(II)”.
Subsec. (c)(5). Pub. L. 107-16, Sec. 303(d)(2)(A), struck par. (5). Before being struck, it read as follows:
“(5) MODIFIED ADJUSTED GROSS INCOME DEFINED.--
“(A) IN GENERAL.--
“The term “modified adjusted gross income” means adjusted gross income determined without regard to the amounts described in subparagraph (B) and increased by the amounts described in subparagraph (C).
“(B) CERTAIN AMOUNTS DISREGARDED.--
“An amount is described in this subparagraph if it is--
“(i) the amount of losses from sales or exchanges of capital assets in excess of gains from such sales or exchanges to the extent such amount does not exceed the amount under section 1211(b)(1),
“(ii) the net loss from estates and trusts,
“(iii) the excess (if any) of amounts described in subsection (i)(2)(C)(ii) over the amounts described in subsection (i)(2)(C)(i) (relating to nonbusiness rents and royalties), or
“(iv) 75 percent of the net loss from the carrying on of trades or businesses, computed separately with respect to--
“(I) trades or businesses (other than farming) conducted as sole proprietorships,
“(II) trades or businesses of farming conducted as sole proprietorships, and
“(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken into account items which are attributable to a trade or business which consists of the performance of services by the taxpayer as an employee.
“(C) Certain amounts included. -- An amount is described in this subparagraph if it is--
“(i) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, or
“(ii) amounts received as a pension or annuity, and any distributions or payments received from an individual retirement plan, by the taxpayer during the taxable year to the extent not included in gross income.
“Clause (ii) shall not include any amount which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”
Subsec. (f)(2)(B). Pub. L. 107-16, Sec. 303(d)(2)(B), amended subpar. (B) by striking “modified” each place it appeared.
Subsec. (h). Pub. L. 107-16, Sec. 303(c), repealed subsec. (h). Before repeal, it read as follows:
“(h) Reduction of credit to taxpayers subject to alternative minimum tax
“The credit allowed under this section for the taxable year shall be reduced by the amount of tax imposed by section 55 (relating to alternative minimum tax) with respect to such taxpayer for such taxable year.”
Subsec. (j)(1)(B). Pub. L. 107-16, Sec. 303(a)(2), amended subpar. (B). Before amendment it read as follows:
“(B) the cost-of-living adjustment determined under section 1(f)(3), for the calendar year in which the taxable year begins, determined by substituting “calendar year 1995" for “calendar year 1992” in subparagraph (B) thereof.”
Subsec. (j)(2)(A). Pub. L. 107-16, Sec. 303(a)(3), amended subpar. (A) by substituting “subsection (b)(2)(A) (after being increased under subparagraph (B) thereof)” for “subsection (b)(2)”.
Subsec. (n). Pub. L. 107-16, Sec. 201(c)(3), struck subsec. (n). Before being struck, it read as follows:
“(n) Supplemental Child Credit. --
“(1) In general. --
In the case of a taxpayer with respect to whom a credit is allowed under section 24(a) for the taxable year, the credit otherwise allowable under this section shall be increased by the lesser of--
“(A) the excess of--
“(i) the credits allowed under subpart A (determined after the application of section 26 and without regard to this subsection), over
“(ii) the credits which would be allowed under subpart A after the application of section 26, determined without regard to section 24 and this subsection, or
“(B) the excess of--
“(i) the sum of the credits allowed under this part (determined without regard to sections 31, 33, and 34 and this subsection), over
“(ii) the sum of the regular tax and the social security taxes (as defined in section 24(d)).
“The credit determined under this subsection shall be allowed without regard to any other provision of this section, including subsection (d).
“(2) Coordination with other credits. --
The amount of the credit under this subsection shall reduce the amount of the credits otherwise allowable under subpart A for the taxable year (determined after the application of section 26), but the amount of the credit under this subsection (and such reduction) shall not be taken into account in determining the amount of any other credit allowable under this part.”
1999 - Subsec. (c)(3)(B)(iii). Pub. L. 106-170, Sec. 412(a), amended clause (iii) by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively and by adding new subclause (I).
1998 - Subsec. (c)(1). Pub. L. 105-206, Sec. 6021(a), amended subpar. (F) by substituting “No credit shall be allowed under this section to an eligible individual who does not include on the return of tax for the taxable year--” for “The term “eligible individual" does not include any individual who does not include on the return of tax for the taxable year--”.
Subsec. (c)(1)(G). Pub. L. 105-206, Sec. 6021(b)(2), added subpar. (G).
Subsec. (c)(2)(B). Pub. L. 105-206, Sec. 6010(p)(2), amended clause (v) by inserting “shall be taken into account” before “, but only”.
Subsec. (c)(3). Pub. L. 105-206, Sec. 6021(b)(3), amended subpar. (A) by inserting “and” at the end of clause (ii), by striking “, and” at the end of clause (iii) and inserting a period, and by striking clause (iv).
Subsec. (c)(3). Pub. L. 105-206, Sec. 6021(b)(1) amended clause (i) of subpar. (D). Prior to amendment it read as follows:
“(i) IN GENERAL.-- The requirements of this subparagraph are met if the taxpayer includes the name, age, and TIN of each qualifying child (without regard to this subparagraph) on the return of tax for the taxable year. “
Subsec. (c)(5). Pub. L. 105-206, Sec. 6010(p)(1), amended subpar. (A) by inserting before the period “and increased by the amounts described in subparagraph (C)”.
Subsec. (c)(5). Pub. L. 105-206, Sec. 6010(p)(1), amended subpar. (B) by adding “or” at the end of clause (iii), and by amending all that follows subclause (II) of subpar. (B)(iv). Prior to amendment it read as follows:
“(III) other trades or businesses,
“(v) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and
“(vi) amounts received as a pension or annuity, and any distributions or payments received from an individual retirement plan, by the taxpayer during the taxable year to the extent not included in gross income.
For purposes of clause (iv), there shall not be taken into account items which are attributable to a trade or business which consists of the performance of services by the taxpayer as an employee. Clause (vi) shall not include any amount which is not includible in gross income by reason of section 402(c), 403(a)(4), 403(b), 408(d)(3), (4), or (5), or 457(e)(10).”
Subsec. (m). Pub. L. 105-206, Sec. 6003(b)(1), amended sec. (m), as added by Pub. L. 105-34. Prior to amendment it read as follows:
“(m) Supplemental Child Credit.--
“(1) In general.--
In the case of a taxpayer with respect to whom a credit is allowed under section 24 for the taxable year, there shall be allowed as a credit under this section an amount equal to the supplemental child credit (if any) determined for such taxpayer for such taxable year under paragraph (2). Such credit shall be in addition to the credit allowed under subsection (a).
“(2) Supplemental child credit.--
For purposes of this subsection, the supplemental child credit is an amount equal to the excess (if any) of--
“(A) the amount determined under section 24(d)(1)(A), over
“(B) the amount determined under section 24(d)(1)(B).
The amounts referred to in subparagraphs (A) and (B) shall be determined as if section 24(d) applied to all taxpayers.
“(3) Coordination with section 24.--
The amount of the credit under section 24 shall be reduced by the amount of the credit allowed under this subsection.”
1997 - Subsec. (c)(4). Pub. L. 105-34, Sec. 312(d)(2), struck “(as defined in section 1034(h)(3))” and added the last sentence.
Subsec. (m). Pub. L. 105-34, Sec. 101(b), added subsec. (m). Note, however, that Pub. L. 105-34, Sec. 1085(a)(1) redesignated subsec. (l) as subsec. (m).
Subsec. (c)(2)(B). Pub. L. 105-34, Sec. 1085(c), struck “and” at the end of clause (iii); substituted “, and” for “." at the end of clause (iv); and added clause (v). Clause (v) appears above as amended by H. Con. Res. 138, which substituted “paragraph (4) or (7) of section 407(d)” for “section 407(d)”.
Subsec. (c)(5)(B). Pub. L. 105-34, Sec. 1085(d), struck “and” at the end of clause (iii); struck the period at the end of clause (iv)(III); and added clauses (v) and (vi).
Subsec. (c)(5)(B)(iv). Pub. L. 105-34, Sec. 1085(b), substituted “75 percent” for “50 percent”.
Subsec. (k)-(l). Pub. L. 105-34, Sec. 1085(a)(1), redesignated subsecs. (k) and (l) as subsecs. (l) and (m), respectively, and added a new subsec. (k).
1996 - Subsec. (a)(2)(B). Pub. L. 104-193, Sec. 910(a), substituted “modified adjusted gross income” for “adjusted gross income”.
Subsec. (b)(2). Pub. L. 104-193, Sec. 909(a)(3), amended (b)(2) to read as above. Prior to amendment, (b)(2) read as follows:
(2) Amounts.--The earned income amount and the phaseout amount shall be determined as follows:
(A) In general.--In the case of taxable years beginning after 1994:
 

In the case of an eli-    The earned income    The phaseout amount
gible individual with:    amount is:           is:

1 qualifying child           $6,000               $11,000
2 or more qualifying         $8,425               $11,000
   children
No qualifying                $4,000                $5,000
   children
(B) Transitional amounts.--In the case of a taxable year beginning in 1994:
 

In the case of an eli-    The earned income    The phaseout amount
gible individual with:    amount is:           is:

1 qualifying child           $7,750               $11,000
2 or more qualifying         $8,425               $11,000
   children
No qualifying                $4,000                $5,000
   children
Subsec. (c)(1)(C). Pub. L. 104-193, Sec. 910(a), substituted “modified adjusted gross income” for “adjusted gross income”.
Subsec. (c)(1). Pub. L. 104-193, Sec. 451(a), added new subpar. (F).
Subsec. (c)(5). Pub. L. 104-193, Sec. 910(b), added new par. (5).
Subsec. (f)(2)(B). Pub. L. 104-193, Sec. 910(a), substituted “modified adjusted gross income” for “adjusted gross income" each place it appeared.
Subsec. (i)(1). Pub. L. 104-193, Sec. 909(a)(1), substituted “$2,200” for “$2,350”.
Subsec. (i)(2). Pub. L. 104-193, Sec. 909(b), struck “and” at the end of subpar. (B), struck the period at the end of subpar. (C) and inserted a comma, and added new subpars. (D) and (E).
Subsec. (j). Pub. L. 104-193, Sec. 909(a)(2), revised subsec. (j) to read as above. Prior to amendment, subsec. (j) read as follows:
(j) Inflation adjustments
(1) In general. --In the case of any taxable year beginning after 1994, each dollar amount contained in subsection (b)(2)(A) 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 the taxable year begins, by substituting ‘calendar year 1993’ for ‘calendar year 1992’.
(2) Rounding.--If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10 (or, if such dollar amount is a multiple of $5, such dollar amount shall be increased to the next higher multiple of $10).
Subsec. (l). Pub. L. 104-193, Sec. 451(b), added new subsec. (l).
1995 - Subsecs. (i), (j). Pub. L. 104-7, Sec. 4(a), redesignated subsections (i) and (j) as (j) and (k), and inserted a new subsection (i), effective for taxable years beginning after 1995.
1994 - Subsec. (c). Pub. L. 103-465, Sec. 721, inserted paragraph (4) at end of (c), effective for taxable years beginning after December 31, 1994.
Subsec. (c)(1)(E). Pub. L. 103-465, Sec. 722, inserted subparagraph (E) at end of (c)(1), effective for taxable years beginning after December 31, 1994.
Subsec. (c)(2)(B). Pub. L. 103-465, Sec. 723, struck “and” at end of clause (ii); replaced “.” with “, and” at end of clause (iii); and inserted new clause (iv), effective for taxable years beginning after December 31, 1993.
Subsec. (c)(3)(D)(i). Pub. L. 103-465, Sec. 742, amended (c)(3)(D)(i) to read as above. Prior to amendment, (c)(3)(D)(i) read as follows:
(i) IN GENERAL. --The requirements of this subparagraph are met if --
(I) the taxpayer includes the name and age of each qualifying child (without regard to this subparagraph) on the return of tax for the taxable year, and
(II) in the case of an individual who has attained the age of 1 year before the close of the taxpayer's taxable year, the taxpayer includes the taxpayer identification number of such individual on such return of tax for such taxable year.
1993 - Subsec. (a) and (b). Pub. L. 103-66, Section 13131(a) amended section 32 by striking subsections (a) and (b) and inserting new subsections (a) and (b).
‘(a) ALLOWANCE OF CREDIT. -- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of --
‘(1) the basic earned income credit, and
‘(2) the health insurance credit.
‘(b) COMPUTATION OF CREDIT. -- For purposes of this section --
‘(1) BASIC EARNED INCOME CREDIT. --
‘(A) IN GENERAL. -- The term ‘basic earned income credit’ means an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed $5,714.
‘(B) LIMITATION. -- The amount of the basic earned income credit allowable to a taxpayer for any taxable year shall not exceed the excess (if any) of—
‘(i) the credit percentage of $5,714, over
‘(ii) the phaseout percentage of so much of the adjusted gross income (or, if greater the earned income) of the taxpayer for the taxable year as exceeds $9,000.
‘(C) PERCENTAGES. -- For purposes of this paragraph --
‘(i) IN GENERAL. -- Except as provided in clause (ii), the percentages shall be determined as follows:
 

In the case of an eligible      The credit        The phaseout
     individual with:          percentage is:      percentage is:

1 qualifying child                   23                16.43
2 or more qualifying children        25                17.86
‘(ii) TRANSITION PERCENTAGES. --
‘(I) For taxable years beginning in 1991, the percentages are:
 

In the case of an eligible      The credit        The phaseout
     individual with:          percentage is:      percentage is:

1 qualifying child                  16.7               11.93
2 or more qualifying children       17.3               12.36
‘(II) For taxable years beginning in 1992, the percentages are:
 

In the case of an eligible      The credit        The phaseout
     individual with:          percentage is:      percentage is:

1 qualifying child                  17.6               12.57
2 or more qualifying children       18.4               13.14
‘(III) For taxable years beginning in 1993, the percentages are:
 

In the case of an eligible      The credit        The phaseout
     individual with:          percentage is:      percentage is:

1 qualifying child                  18.5               13.21
2 or more qualifying children       19.5               13.93
‘(D) SUPPLEMENTAL YOUNG CHILD CREDIT. -- In the case of a taxpayer with a qualifying child who has not attained age 1 as of the close of the calendar year in which or with which the taxable year of the taxpayer ends --
‘(i) the credit percentage shall be increased by 5 percentage points, and
‘(ii) the phaseout percentage shall be increased by 3.57 percentage points.
‘If the taxpayer elects to take a child into account under this subparagraph, such child shall not be treated as a qualifying individual under section 21.
‘(2) HEALTH INSURANCE CREDIT. --
‘(A) IN GENERAL. -- The term ‘health insurance credit’ means an amount determined in the same manner as the basic earned income credit except that --
‘(i) the credit percentage shall be equal to 6 percent, and
‘(ii) the phaseout percentage shall be equal to 4.285 percent.
‘(B) LIMITATION BASED ON HEALTH INSURANCE COSTS. -- The amount of the health insurance credit determined under subparagraph (A) for any taxable year shall not exceed the amounts paid by the taxpayer during the taxable year for insurance coverage --
‘(i) which constitutes medical care (within the meaning of section 213(d)(1)(C)), and
‘(ii) which includes at least 1 qualifying child.
‘For purposes of this subparagraph, the rules of section 213(d)(6) shall apply.
‘(C) SUBSIDIZED EXPENSES. -- A taxpayer may not take into account under subparagraph (B) any amount to the extent that --
‘(i) such amount is paid, reimbursed, or subsidized by the Federal Government, a State or local government, or any agency or instrumentality thereof; and
‘(ii) the payment, reimbursement, or subsidy of such amount is not includible in the gross income of the recipient.
Subsec. (c)(1)(A). Pub. L. 103-66, Section 13131(b) amended subparagraph (A), which formerly read:
‘(A) IN GENERAL. -- The term ‘eligible individual’ means any individual who has a qualifying child for the taxable year.'
Subsec. (c)(3)(D). Pub. L. 103-66, Section 13131(d)(1) amended subparagraph (D) by striking “clause (i) or (ii)” in clause (iii) and inserting “clause (i)”, by striking clause (ii), and by redesignating clause (iii) as clause (ii). Clause (ii) formerly read:
‘(ii) INSURANCE POLICY NUMBER. -- In the case of any taxpayer with respect to which the health insurance credit is allowed under subsection (a)(2), the Secretary may require a taxpayer to include an insurance policy number or other adequate evidence of insurance in addition to any information required to be included in clause (i).’
Subsec. (i). Pub. L. 103-66, Section 13131(c) amended section 32(i) by striking paragraphs (1) and (2) and inserting a new paragraph (1), and by redesignating paragraph (3) as paragraph (2). Prior to amendment paragraphs (1) and (2) read as follows:
‘(1) In general
‘In the case of any taxable year beginning after the applicable calendar year, each dollar amount referred to in paragraph (2)(B) 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 the taxable year begins, by substituting “calendar year 1984” for “calendar year 1989” in subparagraph (B) thereof.
‘(2) Definitions, etc.
‘For purposes of paragraph (1)--
‘(A) Applicable calendar year
‘The term “applicable calendar year” means--
‘(i) 1986 in the case of the dollar amounts referred to in clause (i) or (ii) of subparagraph (B), and
‘(ii) 1987 in the case of the dollar amount referred to in clause (ii) of subparagraph (B).
‘(B) Dollar amounts
‘The dollar amounts referred to in this subparagraph are--
‘(i) the $5,714 dollar amounts contained in subsection (b)(1), and
‘(ii) the $9,000 amount contained in subsection (b)(1)(B)(ii).’
1990 - Subsec. (a). Pub. L. 101-508, Sec. 11111(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: ‘In the case of an eligible individual, there is allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 14 percent of so much of the earned income for the taxable year as does not exceed $5,714.’
Subsec. (b). Pub. L. 101-508, Sec. 11111(a), substituted heading for one which read ‘Limitation’ and amended subsec. (b) generally.
Prior to amendment, subsec. (b) read as follows: ‘The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of -
‘(1) the maximum credit allowable under subsection (a) to any taxpayer, over
‘(2) 10 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $9,000.
In the case of any taxable year beginning in 1987, paragraph (2) shall be applied by substituting ‘$6,500’ for ‘$9,000’.'
Subsec. (c). Pub. L. 101-508, Sec. 11111(a), amended subsec. (c) generally, inserting ‘and special rules’ in heading and substituting present provisions for provisions defining ‘eligible individual’ and ‘earned income’.
Subsec. (i)(1)(B). Pub. L. 101-508, Sec. 11101(d)(1)(B), substituted ‘1989’ for ‘1987’.
Subsec. (i)(2)(A). Pub. L. 101-508, Sec. 11111(e)(1), (2), substituted ‘clause (i) of subparagraph (B)’ for ‘clause (i) or (ii) of subparagraph (B)’ in cl. (i) and ‘clause (ii)’ for ‘clause (iii)’ in cl. (ii).
Subsec. (i)(2)(B). Pub. L. 101-508, Sec. 11111(e)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘The dollar amounts referred to in this subparagraph are -
‘(i) the $5,714 amount contained in subsection (a),
‘(ii) the $6,500 amount contained in the last sentence of subsection (b), and
‘(iii) the $9,000 amount contained in subsection (b)(2).’
Subsec. (k). Pub. L. 101-508, Sec. 11111(b), added subsec. (j).
1988 - Subsec. (h). Pub. L. 100-647, Sec. 1007(g)(12), struck out ‘for taxpayers other than corporations’ after ‘alternative minimum tax’.
Subsec. (i)(3). Pub. L. 100-647, Sec. 1001(c), amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘If any increase determined under paragraph (1) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or, if such increase is a multiple of $5, such increase shall be increased to the next higher multiple of $10).’
1986 - Subsec. (a). Pub. L. 99-514, Sec. 111(a), substituted ‘14 percent’ for ‘11 percent’ and ‘$5,714’ for ‘$5,000’.
Subsec. (b). Pub. L. 99-514, Sec. 111(b), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of -
‘(1) $550, over
‘(2) 12 2/9 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $6,500.’
Subsec. (c)(1)(A)(i). Pub. L. 99-514, Sec. 1301(j)(8), substituted ‘section 7703’ for ‘section 143’.
Pub. L. 99-514, Sec. 104(b)(1)(B), substituted ‘section 151(c)(3)’ for ‘section 151(e)(3)’.
Subsec. (c)(1)(C). Pub. L. 99-514, Sec. 1272(d)(4), struck out ‘or 931’ after ‘911’ in heading, and amended text generally. Prior to amendment, text read as follows: ‘The term ‘eligible individual’ does not include an individual who, for the taxable year, claims the benefits of -
‘(i) section 911 (relating to citizens or residents of the United States living abroad),
‘(ii) section 931 (relating to income from sources within possessions of the United States).’
Subsec. (d). Pub. L. 99-514, Sec. 1301(j)(8), substituted ‘section 7703’ for ‘section 143’.
Subsec. (f)(2)(A), (B). Pub. L. 99-514, Sec. 111(d)(1), added subpars. (A) and (B) and struck out former subpars. (A) and (B) which read as follows:
‘(A) for earned income between $0 and $11,000, and
‘(B) for adjusted gross income between $6,500 and $11,000.’
Subsec. (i). Pub. L. 99-514, Sec. 111(c), added subsec. (i).
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 43 of this title as this section.
Subsec. (a). Pub. L. 98-369, Sec. 1042(a), substituted ‘11 percent’ for ‘10 percent’.
Subsec. (b)(1). Pub. L. 98-369, Sec. 1042(d)(1), substituted ‘$550’ for ‘$500’.
Subsec. (b)(2). Pub. L. 98-369, Sec. 1042(b), substituted ‘12 2/9 percent’ for ‘12.5 percent’ and ‘$6,500’ for ‘$6,000’.
Subsec. (c)(1)(A)(i). Pub. L. 98-369, Sec. 423(c)(3)(A), inserted ‘or would be so entitled but for paragraph (2) or (4) of section 152(e)’.
Subsec. (c)(1)(B). Pub. L. 98-369, Sec. 423(c)(3)(B), substituted ‘as the individual for more than one-half of the taxable year’ for ‘as the individual’.
Subsec. (f)(2)(A). Pub. L. 98-369, Sec. 1042(d)(2), substituted ‘between $0 and $11,000’ for ‘between $0 and $10,000’.
Subsec. (f)(2)(B). Pub. L. 98-369, Sec. 1042(d)(2), substituted ‘between $6,500 and $11,000’ for ‘between $6,000 and $10,000’.
Subsec. (h). Pub. L. 98-369, Sec. 1042(c), added subsec. (h).
1983 - Subsec. (c)(2)(A)(ii). Pub. L. 98-21, Sec. 124(c)(4)(B), inserted before period at end ‘, but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f)’.
1981 - Subsec. (c)(1)(C). Pub. L. 97-34, Sec. 111(b)(2), 112(b)(3), struck out reference to section 913 in heading, substituted ‘relating to citizens or residents of the United States living abroad’ for ‘relating to income earned by individuals in certain camps outside the United States’ in cl. (i), struck out cl. (ii) which made reference to section 913, and redesignated cl. (iii) as (ii).
1980 - Subsec. (c)(1)(C). Pub. L. 96-222, Sec. 101(a)(1), in heading substituted ‘who claims benefit of section 911, 913, or 931’ for ‘entitled to exclude income under section 911’ and in text substituted ‘claims the benefits of’ for ‘is entitled to exclude any amounts from gross income under’ and inserted reference to section 913 (relating to deduction for certain expenses of living abroad).
Subsecs. (g), (h). Pub. L. 96-222, Sec. 101(a)(2)(E), redesignated subsec. (h) as (g).
1978 - Subsec. (a). Pub. L. 95-600, Sec. 104(a), substituted ‘subtitle’ for ‘chapter’ and ‘$5,000’ for ‘$4,000’.
Subsec. (b). Pub. L. 95-600, Sec. 104(b), substituted provision limiting the allowable credit to an amount not to exceed the excess of $500 over 12.5 percent of so much of the adjusted gross income for the taxable year as exceeds $6,000 for provision limiting the allowable credit to an amount reduced by 10 percent of so much of the adjusted gross income for the taxable year as exceeds $4,000.
Subsec. (c)(1). Pub. L. 95-600, Sec. 104(e), amended par. (1) generally, substituting in definition of eligible individual one who is married and is entitled to a deduction under section 151 for a child, provided the child has the same principal abode as the individual and the abode is in the United States, is a surviving spouse, or is a head of household, provided the household is in the United States for one who maintains a household in the United States which is the principal abode of that individual and a child of that individual who meets the requirements of section 151(e)(1)(B) or a child of that individual who is disabled within the meaning of section 72(m)(7) and to whom the individual is entitled to claim a deduction under section 151.
Subsec. (c)(1)(C). Pub. L. 95-615, Sec. 202(f)(5), which directed the amendment of subsec. (c)(1)(B) by substituting ‘(relating to income earned by employees in certain camps)’ for ‘(relating to earned income from sources without the United States)’, was executed to subsec. (c)(1)(C) to reflect the probable intent of Congress and the general amendment of subsec. (c)(1) by Pub. L. 95-600 which enacted provisions formerly contained in subsec. (c)(1)(B) in subsec. (c)(1)(C).
Subsec. (c)(2)(B). Pub. L. 95-600, Sec. 104(d), redesignated cls. (ii) to (iv) as (i) to (iii), respectively. Former cl. (i), which provided that amounts be taken into account only if includible in the gross income of the taxpayer for the taxable year, was struck out.
Subsec. (f). Pub. L. 95-600, Sec. 104(c), added subsec. (f).
Subsec. (g). Pub. L. 95-600, Sec. 105(a), added subsec. (h).
1977 - Subsec. (b). Pub. L. 95-30, Sec. 103(b), struck out “January 1, 1978” and inserted “January 1, 1979”.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 401(c)(1)(B), substituted ‘is allowed’ for ‘shall be allowed’ and struck out provisions relating to the application of the six-month rule.
Subsec. (b). Pub. L. 94-455, Sec. 401(c)(1)(B), struck out provisions relating to the application of the six-month rule.
Subsec. (c)(1)(A). Pub. L. 94-455, Sec. 401(c)(2), among other changes, substituted ‘section 44A(f)(1)’ for ‘section 214(b)(3)’ and ‘if such child meets the requirements of section 151(e)(1)(B)’ for ‘with respect to whom he is entitled to claim a deduction under section 151(e)(1)(B)’ and inserted reference to a child of that individual who is disabled (within the meaning of section 72(m)(7)) and with respect to whom that individual is entitled to claim a deduction under section 151.
Pub. L. 94-455, Sec. 402(a), struck out “which begins prior to July 1, 1976,”.
1975 - Subsec. (a). Pub. L. 94-164 designated existing provisions as par. (1) and added par. (2).
Subsec. (b). Pub. L. 94-164 designated existing provisions as par. (1) and added par. (2).
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Pub. L. 115-141, Div. U, Sec. 101(a), effective as if included in the provisions of the Protecting Americans from Tax Hikes Act of 2015 to which they relate.
Amendment by Pub. L. 115-141, Div. U, Sec. 401(b)(4), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following savings provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Secs. 11002(d)(1)(D), effective for taxable years beginning after December 31, 2017.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, Sec. 103, effective for taxable years beginning after December 31, 2015.
Amendment by Pub. L. 114-113, Div. Q, Sec. 204(a), effective for any return of tax, and any amendment or supplement to any return of tax, which is filed after the date of the enactment of this Act [Enacted: Dec. 18, 2015]. Pub. L. 114-113, Div. Q, Sec. 204(b)(2), before being retroactively struck by Pub. L. 115-141, Div. U, Sec. 101(h), provided the following exception:
“(2) EXCEPTION FOR TIMELY-FILED 2015 RETURNS.—The amendment made by this section shall not apply to any return of tax (other than an amendment or supplement to any return of tax) for any taxable year which includes the date of the enactment of this Act if such return is filed on or before the due date for such return of tax.”
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. A, Sec. 206(a), effective as if included in the provision of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 [Pub. L. 111-312, Sec. 103(c)] to which it relates [Effective for taxable years beginning after Dec. 31, 2012].
Amendments by Pub. L. 113-295, Div. A, Sec. 221(a)(3), effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2) SAVINGS PROVISION.—If—
“(A) any provision amended or repealed by the amendments made by this section applied to—
“(i) any transaction occurring before the date of the enactment of this Act [Enacted: Dec. 19, 2014],
“(ii) any property acquired before such date of enactment, or
“(iii) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(B) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this section) affect the liability for tax for periods ending after date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by section 103(c) of Pub. L. 112-240 effective for taxable years beginning after December 31, 2012.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendments by section 103(c) of Pub. L. 111-312 effective for taxable years beginning after December 31, 2010.
Amendment by section 219(a)(1) of Pub. L. 111-226 effective for taxable years beginning after December 31, 2010.
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendment by section 1002(a) of Pub. L. 111-5, Div. B, effective for taxable years ending after December 31, 2008.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by section 4002(b) of Pub. L. 110-246 effective June 18, 2008.
Amendment by section 102(a) of Pub. L. 110-245 effective for taxable years ending after December 31, 2007.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendment by section 106(a) of Pub. L. 109-432 effective for taxable years beginning after December 31, 2006.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendment by section 302(a) of Pub. L. 109-135 effective for taxable years beginning after December 31, 2005.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by section 104(b) of Pub. L. 108-311 effective for taxable years ending after the date of the enactment of this Act [Enacted: Oct. 4, 2004]. Sec. 105 of Pub. L. 108-311 provided that:
“SEC. 105--APPLICATION OF EGTRRA SUNSET TO THIS TITLE.
“Each amendment made by this title shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to the same extent and in the same manner as the provision of such Act to which such amendment relates.” Note that Pub. L. 112-240, Sec. 101(a)(1), struck Title IX of Pub. L. 107-16 effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012.
Amendments by section 205 of Pub. L. 108-311 effective for taxable years beginning after December 31, 2004.
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendment by section 416(a)(1) of Pub. L. 107-147 effective as if included in section 474 of the Tax Reform Act of 1984.
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendment by section 201(c)(3) of Pub. L. 107-16 effective for taxable years beginning after December 31, 2000.
Amendments by section 303 of Pub. L. 107-16 effective for taxable years beginning after December 31, 2001.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
EFFECTIVE DATE OF 1999 AMENDMENTS
Amendments by section 412(a) of Pub. L. 106-170 effective for taxable years beginning after December 31, 1999.
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by section 6021(a) of Pub. L. 105-206 effective as if included in the amendments made by section 451 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
Amendment by section 6021(b) of Pub. L. 105-206 effective as if included in the amendments made by section 11111 of Revenue Reconciliation Act of 1990.
Amendment by section 6010(p) of Pub. L. 105-206 effective as if included in the amendments made by section 1085 of the Taxpayer Relief Act of 1997 [Effective Date of Pub. L. 105-34, Sec. 1085: Tax years beginning after December 31, 1997].
Amendment by section 6003(b)(1) of Pub. L. 105-206 effective as if included in the amendments made by section 101(b) of the Taxpayer Relief Act of 1997 [Effective Date of Pub. L. 105-34, Sec. 101(b): Tax years beginning after December 31, 1997].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by section 312(d)(1) of Pub. L. 105-34 effective for sales and exchanges after May 6, 1997. For special rules, see section 312(d)[e] set out in section 121.
Amendment by section 101(b) of Pub. L. 105-34 effective for taxable years beginning after December 31, 1997.
Amendments by section 1085(b), (c) and (d) of Pub. L. 105-34 effective for taxable years beginning after December 31, 1997.
Amendments by section 1085(a) of Pub. L. 105-34 effective for taxable years beginning after December 31, 1996.
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendments by section 451 of Pub. L. 104-193 effective with respect to returns the due date for which (without regard to extensions) is more than 30 days after the date of the enactment of this Act [Aug. 22, 1996].
Amendments by section 909 of Pub. L. 104-193 effective generally to taxable years beginning after Dec. 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.
In the case of any individual who on or before June 26, 1996, has in effect an earned income eligibility certificate for the individual's taxable year beginning in 1996, the amendments made by this section shall apply to taxable years beginning after December 31, 1996.
Amendments by section 910(c)(2) of Pub. L. 104-193 effective for taxable years beginning after Dec. 31, 1995.
(2) ADVANCE PAYMENT INDIVIDUALS.
In the case of any individual who on or before June 26, 1996, has in effect an earned income eligibility certificate for the individual's taxable year beginning in 1996, the amendments made by this section shall apply to taxable years beginning after December 31, 1996.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendment by section 742 of Pub. L. 103-465 effective for returns for taxable years beginning after December 31, 1994.
(2) EXCEPTION.--The amendments made by this section shall not apply to--
(A) returns for taxable years beginning in 1995 with respect to individuals who are born after October 31, 1995, and
(B) returns for taxable years beginning in 1996 with respect to individuals who are born after November 30, 1996.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendment by section 13131 of Pub. L. 103-66 applicable to taxable years beginning after December 31, 1993.
EFFECTIVE DATE OF 1990 AMENDMENTS
Amendment by section 11101(d)(1)(B) of Pub. L. 101-508 applicable to taxable years beginning after Dec. 31, 1990, see section 11101(e) of Pub. L. 101-508, set out as a note under section 1 of this title.
Section 11111(f) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section and sections 162, 213, and 3507 of this title) shall apply to taxable years beginning after December 31, 1990.’
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by sections 104(b)(1)(B) and 111(a)-(d)(1) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1272(d)(4) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 of Pub. L. 99-514, set out as a note under section 931 of this title.
Amendment by section 1301(j)(8) of Pub. L. 99-514 applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99-514, set out as an Effective Date; Transitional Rules note under section 141 of this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by section 423(c)(3) of Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1984, see section 423(d) of Pub. L. 98-369, set out as a note under section 2 of this title.
Section 1042(e) of Pub. L. 98-369 provided that: ‘The amendments made by this section (amending sections 32 and 3507 of this title) shall apply to taxable years beginning after December 31, 1984.’
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by Pub. L. 98-21 applicable to taxable years beginning after Dec. 31, 1989, see section 124(d)(2) of Pub. L. 98-21, set out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by Pub. L. 97-34 applicable with respect to taxable years beginning after Dec. 31, 1981, see section 115 of Pub. L. 97-34, set out as a note under section 911 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 101(b)(1)(A) of Pub. L. 96-222 provided that: ‘The amendment made by subsection (a)(1) (amending this section) shall apply to taxable years beginning after December 31, 1977.’
Section 201 of Pub. L. 96-222 provided that: ‘Except as otherwise provided in title I, any amendment made by title I (see Tables for classification) shall take effect as if it had been included in the provision of the Revenue Act of 1978 (Pub. L. 95-600, see Tables for classification) to which such amendment relates.'
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 104(f) of Pub. L. 95-600 provided that: ‘The amendments made by this section (amending this section) shall apply to taxable years beginning after December 31, 1978.’
Section 105(g)(1) of Pub. L. 95-600 provided that: ‘The amendments made by subsections (a) and (d) (amending this section and section 6012 of this title) shall apply to taxable years beginning after December 31, 1978.’
Pub. L. 95-30, Sec. 103(b),amendments made by this section effective May 23, 1977.
Pub. L. 95-30, Sec. 103(c), Amended Pub. L. 94-455, Sec. 401(e) to provide “amendments made by Sec. 401(c) of that Act “shall apply to taxable years ending after December 31, 1975, and shall cease to apply to taxable years beginning after December 31, 1978”, effective May 23, 1977.”
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION OF PRIOR LAW
Amendment by Pub. L. 95-615 applicable to taxable years beginning after Dec. 31, 1977, with provision for election of prior law, see section 209 of Pub. L. 95-615, set out as a note under section 911 of this title.
CREDIT FOR SICK LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS
Sec. 7002 of Pub. L. 116-127 provided:
“SEC. 7002. CREDIT FOR SICK LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS.
“(a) CREDIT AGAINST SELF-EMPLOYMENT TAX.—In the case of an eligible self-employed individual, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for any taxable year an amount equal to the qualified sick leave equivalent amount with respect to the individual.
“(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For purposes of this section, the term ‘‘eligible self-employed individual’’ means an individual who—
“(1) regularly carries on any trade or business within the meaning of section 1402 of such Code, and
“(2) would be entitled to receive paid leave during the taxable year pursuant to the Emergency Paid Sick Leave Act if the individual were an employee of an employer (other than himself or herself).
“(c) QUALIFIED SICK LEAVE EQUIVALENT AMOUNT.—For purposes of this section—
“(1) IN GENERAL.—The term ‘‘qualified sick leave equivalent amount’’ means, with respect to any eligible self-employed individual, an amount equal to—
“(A) the number of days during the taxable year (but not more than the applicable number of days) that the individual is unable to perform services in any trade or business referred to in section 1402 of such Code for a reason with respect to which such individual would be entitled to receive sick leave as described in subsection (b), multiplied by
“(B) the lesser of—
“(i) $200 ($511 in the case of any day of paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act), or
“(ii) 67 percent (100 percent in the case of any day of paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act) of the average daily self-employment income of the individual for the taxable year.
“(2) AVERAGE DAILY SELF-EMPLOYMENT INCOME.—For purposes of this subsection, the term ‘‘average daily self-employment income’’ means an amount equal to—
“(A) the net earnings from self-employment of the individual for the taxable year, divided by
“(B) 260.
“(3) APPLICABLE NUMBER OF DAYS.—For purposes of this subsection, the term ‘‘applicable number of days’’ means, with respect to any taxable year, the excess (if any) of 10 days over the number of days taken into account under paragraph (1)(A) in all preceding taxable years.
“(d) SPECIAL RULES.—
“(1) CREDIT REFUNDABLE.—
“(A) IN GENERAL.—The credit determined under this section shall be treated as a credit allowed to the taxpayer under subpart C of part IV of subchapter A of chapter 1 of such Code.
“(B) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States Code, any refund due from the credit determined under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
“(2) DOCUMENTATION.—No credit shall be allowed under this section unless the individual maintains such documentation as the Secretary of the Treasury (or the Secretary's delegate) may prescribe to establish such individual as an eligible self-employed individual.
“(3) DENIAL OF DOUBLE BENEFIT.—In the case of an individual who receives wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) or compensation (as defined in section 3231(e) of the Internal Revenue Code) paid by an employer which are required to be paid by reason of the Emergency Paid Sick Leave Act, the qualified sick leave equivalent amount otherwise determined under subsection (c) shall be reduced (but not below zero) to the extent that the sum of the amount described in such subsection and in section 7001(b)(1) exceeds $2,000 ($5,110 in the case of any day any portion of which is paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act).
“(4) CERTAIN TERMS.—Any term used in this section which is also used in chapter 2 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such chapter.
“(e) APPLICATION OF SECTION.—Only days occurring during the period beginning on a date selected by the Secretary of the Treasury (or the Secretary's delegate) which is during the 15-day period beginning on the date of the enactment of this Act, and ending on December 31, 2020, may be taken into account under subsection (c)(1)(A).
“(f) APPLICATION OF CREDIT IN CERTAIN POSSESSIONS.—
“(1) PAYMENTS TO POSSESSIONS WITH MIRROR CODE TAX SYSTEMS.—The Secretary of the Treasury (or the Secretary's delegate) shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of the provisions of this section. Such amounts shall be determined by the Secretary of the Treasury (or the Secretary's delegate) based on information provided by the government of the respective possession.
“(2) PAYMENTS TO OTHER POSSESSIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury (or the Secretary's delegate) as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury (or the Secretary's delegate), under which such possession will promptly distribute such payments to its residents.
“(3) MIRROR CODE TAX SYSTEM.—For purposes of this section, the term ‘‘mirror code tax system’’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
“(4) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
“(g) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including—
“(1) regulations or other guidance to effectuate the purposes of this Act, and
“(2) regulations or other guidance to minimize compliance and record-keeping burdens under this section.”
CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS
Sec. 7004 of Pub. L. 116-127 provided:
“SEC. 7004. CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS.
“(a) CREDIT AGAINST SELF-EMPLOYMENT TAX.—In the case of an eligible self-employed individual, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for any taxable year an amount equal to 100 percent of the qualified family leave equivalent amount with respect to the individual.
“(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For purposes of this section, the term ‘‘eligible self-employed individual’’ means an individual who—
“(1) regularly carries on any trade or business within the meaning of section 1402 of such Code, and
“(2) would be entitled to receive paid leave during the taxable year pursuant to the Emergency Family and Medical Leave Expansion Act if the individual were an employee of an employer (other than himself or herself).
“(c) QUALIFIED FAMILY LEAVE EQUIVALENT AMOUNT.—For purposes of this section—
“(1) IN GENERAL.—The term ‘‘qualified family leave equivalent amount’’ means, with respect to any eligible self-employed individual, an amount equal to the product of—
“(A) the number of days (not to exceed 50) during the taxable year that the individual is unable to perform services in any trade or business referred to in section 1402 of such Code for a reason with respect to which such individual would be entitled to receive paid leave as described in subsection (b), multiplied by
“(B) the lesser of—
“(i) 67 percent of the average daily self-employment income of the individual for the taxable year, or
“(ii) $200.
“(2) AVERAGE DAILY SELF-EMPLOYMENT INCOME.—For purposes of this subsection, the term ‘‘average daily self-employment income’’ means an amount equal to—
“(A) the net earnings from self-employment income of the individual for the taxable year, divided by
“(B) 260.
“(d) SPECIAL RULES.—
“(1) CREDIT REFUNDABLE.—
“(A) IN GENERAL.—The credit determined under this section shall be treated as a credit allowed to the taxpayer under subpart C of part IV of subchapter A of chapter 1 of such Code.
“(B) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States Code, any refund due from the credit determined under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
“(2) DOCUMENTATION.—No credit shall be allowed under this section unless the individual maintains such documentation as the Secretary of the Treasury (or the Secretary's delegate) may prescribe to establish such individual as an eligible self-employed individual.
“(3) DENIAL OF DOUBLE BENEFIT.—In the case of an individual who receives wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) or compensation (as defined in section 3231(e) of the Internal Revenue Code) paid by an employer which are required to be paid by reason of the Emergency Family and Medical Leave Expansion Act, the qualified family leave equivalent amount otherwise described in subsection (c) shall be reduced (but not below zero) to the extent that the sum of the amount described in such subsection and in section 7003(b)(1) exceeds $10,000.
“(4) CERTAIN TERMS.—Any term used in this section which is also used in chapter 2 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such chapter.
“(5) REFERENCES TO EMERGENCY FAMILY AND MEDICAL LEAVE EXPANSION ACT.—Any reference in this section to the Emergency Family and Medical Leave Expansion Act shall be treated as including a reference to the amendments made by such Act.
“(e) APPLICATION OF SECTION.—Only days occurring during the period beginning on a date selected by the Secretary of the Treasury (or the Secretary's delegate) which is during the 15-day period beginning on the date of the enactment of this Act, and ending on December 31, 2020, may be taken into account under subsection (c)(1)(A).
“(f) APPLICATION OF CREDIT IN CERTAIN POSSESSIONS.—
“(1) PAYMENTS TO POSSESSIONS WITH MIRROR CODE TAX SYSTEMS.—The Secretary of the Treasury (or the Secretary's delegate) shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of the provisions of this section. Such amounts shall be determined by the Secretary of the Treasury (or the Secretary's delegate) based on information provided by the government of the respective possession.
“(2) PAYMENTS TO OTHER POSSESSIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury (or the Secretary's delegate) as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury (or the Secretary's delegate), under which such possession will promptly distribute such payments to its residents.
“(3) MIRROR CODE TAX SYSTEM.—For purposes of this section, the term ‘‘mirror code tax system’’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
“(4) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
“(e) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including—
“(1) regulations or other guidance to prevent the avoidance of the purposes of this Act, and
“(2) regulations or other guidance to minimize compliance and record-keeping burdens under this section.”
OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.
Section 204 of Pub. L. 116-94, Div. Q, provided that:
“(a) TEMPORARY INCREASE IN LIMITATION ON QUALIFIED CONTRIBUTIONS.—
“(1) SUSPENSION OF CURRENT LIMITATION.—Except as otherwise provided in paragraph (2), qualified contributions shall be disregarded in applying subsections (b) and (d) of section 170 of the Internal Revenue Code of 1986.
“(2) APPLICATION OF INCREASED LIMITATION.— For purposes of section 170 of the Internal Revenue Code of 1986—
“(A) INDIVIDUALS.—In the case of an individual—
“(i) LIMITATION.—Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's contribution base (as defined in subparagraph (H) of section 170(b)(1) of such Code) over the amount of all other charitable contributions allowed under section 170(b)(1) of such Code.
“(ii) CARRYOVER.—If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of clause (i), such excess shall be added to the excess described in section 170(b)(1)(G)(ii).
“(B) CORPORATIONS.—In the case of a corporation—
“(i) LIMITATION.—Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.
“(ii) CARRYOVER.—If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(2) of such Code) exceeds the limitation of clause (i), such excess shall be appropriately taken into account under section 170(d)(2) subject to the limitations thereof.
“(3) QUALIFIED CONTRIBUTIONS.—
“(A) IN GENERAL.—For purposes of this subsection, the term ‘‘qualified contribution’’ means any charitable contribution (as defined in section 170(c) of the Internal Revenue Code of 1986) if—
“(i) such contribution—
“(I) is paid, during the period beginning on January 1, 2018, and ending on the date which is 60 days after the date of the enactment of this Act, in cash to an organization described in section 170(b)(1)(A) of such Code, and
“(II) is made for relief efforts in one or more qualified disaster areas,
“(ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8) of such Code) that such contribution was used (or is to be used) for relief efforts described in clause (i)(II), and
“(iii) the taxpayer has elected the application of this subsection with respect to such contribution.
“(B) EXCEPTION.—Such term shall not include a contribution by a donor if the contribution is—
“(i) to an organization described in section 509(a)(3) of the Internal Revenue Code of 1986, or
“(ii) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code).
“(C) APPLICATION OF ELECTION TO PARTNERSHIPS AND S CORPORATIONS.—In the case of a partnership or S corporation, the election under subparagraph (A)(iii) shall be made separately by each partner or shareholder.
“(b) SPECIAL RULES FOR QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES.—
“(1) IN GENERAL.—If an individual has a net disaster loss for any taxable year—
“(A) the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of—
“(i) such net disaster loss, and
“(ii) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual,
“(B) section 165(h)(1) of such Code shall be applied by substituting ‘‘$500’’ for ‘‘$500 ($100 for taxable years beginning after December 31, 2009)’’,
“(C) the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and
“(D) section 56(b)(1)(E) of such Code (section 56(b)(1)(D) of such Code in the case of taxable years ending after December 31, 2018) shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph.
“(2) NET DISASTER LOSS.—For purposes of this subsection, the term ‘‘net disaster loss’’ means the excess of qualified disaster-related personal casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of the Internal Revenue Code of 1986).
“(3) QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES.—For purposes of this subsection, the term ‘‘qualified disaster-related personal casualty losses’’ means losses described in section 165(c)(3) of the Internal Revenue Code of 1986 which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such qualified disaster.
“(c) SPECIAL RULE FOR DETERMINING EARNED INCOME.—
“(1) IN GENERAL.—In the case of a qualified individual, if the earned income of the taxpayer for the applicable taxable year is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting—
“(A) such earned income for the preceding taxable year, for
“(B) such earned income for the applicable taxable year.
“(2) QUALIFIED INDIVIDUAL.—For purposes of this subsection, the term ‘‘qualified individual’’ means any individual whose principal place of abode at any time during the incident period of any qualified disaster was located—
“(A) in the qualified disaster zone with respect to such qualified disaster, or
“(B) in the qualified disaster area with respect to such qualified disaster (but outside the qualified disaster zone with respect to such quali1760 fied disaster) and such individual was displaced from such principal place of abode by reason of such qualified disaster.
“(3) APPLICABLE TAXABLE YEAR.—For purposes of this subsection, the term ‘‘applicable taxable year’’ means—
“(A) in the case of a qualified individual other than an individual described in subparagraph (B), any taxable year which includes any portion of the incident period of the qualified disaster to which the qualified disaster area referred to in paragraph (2)(A) relates, or
“(B) in the case of a qualified individual described in subparagraph (B) of paragraph (2), any taxable year which includes any portion of the period described in such subparagraph.
“(4) EARNED INCOME.—For purposes of this subsection, the term ‘‘earned income’’ has the meaning given such term under section 32(c) of the Internal Revenue Code of 1986.
“(5) SPECIAL RULES.—
“(A) APPLICATION TO JOINT RETURNS.—For purposes of paragraph (1), in the case of a joint return for an applicable taxable year—
“(i) such paragraph shall apply if either spouse is a qualified individual, and
“(ii) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.
“(B) UNIFORM APPLICATION OF ELECTION.— Any election made under paragraph (1) shall apply with respect to both sections 24(d) and 32 of the Internal Revenue Code of 1986.
“(C) ERRORS TREATED AS MATHEMATICAL ERROR.—For purposes of section 6213 of the Internal Revenue Code of 1986, an incorrect use on a return of earned income pursuant to paragraph (1) shall be treated as a mathematical or clerical error.
“(D) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC.—Except as otherwise provided in this subsection, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under paragraph (1).”
SPECIAL RULE FOR DETERMINING EARNED INCOME
Section 504(c) of Pub. L. 115-63 provided:
“(1) IN GENERAL.—In the case of a qualified individual, if the earned income of the taxpayer for the taxable year which includes the applicable date is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting—
“(A) such earned income for the preceding taxable year, for—
“(B) such earned income for the taxable year which includes the applicable date.
“In the case of a resident of Puerto Rico determining the credit allowed under section 24(d)(1)(B)(ii) of such Code, the preceding sentence shall be applied by substituting “social security taxes (as defined in section 24(d)(2)(A) of the Internal Revenue Code of 1986)” for “earned income” each place it appears.
“(2) QUALIFIED INDIVIDUAL—For purposes of this subsection—
“(A) IN GENERAL.—The term “qualified individual” means any qualified Hurricane Harvey individual, any qualified Hurricane Irma individual, and any qualified Hurricane Maria individual.
“(B) QUALIFIED HURRICANE HARVEY INDIVIDUAL.—The term “qualified Hurricane Harvey individual” means any individual whose principal place of abode on August 23, 2017, was located—
“(i) in the Hurricane Harvey disaster zone, or
“(ii) in the Hurricane Harvey disaster area (but outside the Hurricane Harvey disaster zone) and such individual was displaced from such principal place of abode by reason of Hurricane Harvey.
“(C) QUALIFIED HURRICANE IRMA INDIVIDUAL.—The term “qualified Hurricane Irma individual” means any individual (other than a qualified Hurricane Harvey individual) whose principal place of abode on September 4, 2017, was located—
“(i) in the Hurricane Irma disaster zone, or
“(ii) in the Hurricane Irma disaster area (but outside the Hurricane Irma disaster zone) and such individual was displaced from such principal place of abode by reason of Hurricane Irma.
“(D) QUALIFIED HURRICANE MARIA INDIVIDUAL.—The term “qualified Hurricane Maria individual” means any individual (other than a qualified Hurricane Harvey individual or a qualified Hurricane Irma individual) whose principal place of abode on September 16, 2017, was located—
“(i) in the Hurricane Maria disaster zone, or
“(ii) in the Hurricane Maria disaster area (but outside the Hurricane Maria disaster zone) and such individual was displaced from such principal place of abode by reason of Hurricane Maria.
“(3) APPLICABLE DATE.—For purposes of this subsection, the term “applicable date” means—
“(A) in the case of a qualified Hurricane Harvey individual, August 23, 2017,
“(B) in the case of a qualified Hurricane Irma individual, September 4, 2017, and
“(C) in the case of a qualified Hurricane Maria individual, September 16, 2017.
“(4) EARNED INCOME.—For purposes of this subsection, the term “earned income” has the meaning given such term under section 32(c) of the Internal Revenue Code of 1986.
“(5) SPECIAL RULES—
“(A) APPLICATION TO JOINT RETURNS.—For purposes of paragraph (1), in the case of a joint return for a taxable year which includes the applicable date—
“(i) such paragraph shall apply if either spouse is a qualified individual, and
“(ii) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.
“(B) UNIFORM APPLICATION OF ELECTION.—Any election made under paragraph (1) shall apply with respect to both sections 24(d) and 32, of the Internal Revenue Code of 1986.
“(C) ERRORS TREATED AS MATHEMATICAL ERROR.—For purposes of section 6213 of the Internal Revenue Code of 1986, an incorrect use on a return of earned income pursuant to paragraph (1) shall be treated as a mathematical or clerical error.
“(D) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC.—Except as otherwise provided in this subsection, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under paragraph (1).”
SPECIAL RULE FOR DETERMINING EARNED INCOME
Section 406 of Pub. L. 109-73, before repeal by Pub. L. 109-135, Sec. 201(b)(4) (effective Dec. 21, 2005) provided that:
“(a) IN GENERAL.--In the case of a qualified individual, if the earned income of the taxpayer for the taxable year which includes August 25, 2005, is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting--
“(1) such earned income for the preceding taxable year, for
“(2) such earned income for the taxable year which includes August 25, 2005.
“(b) QUALIFIED INDIVIDUAL.--For purposes of this section, the term “qualified individual” means any individual whose principal place of abode on August 25, 2005, was located--
“(1) in the core disaster area, or
“(2) in the Hurricane Katrina disaster area (but outside the core disaster area) and such individual was displaced from such principal place of abode by reason of Hurricane Katrina.
“(c) EARNED INCOME.--For purposes of this section, the term “earned income” has the meaning given such term under section 32(c) of such Code.
“(d) SPECIAL RULES.--
“(1) APPLICATION TO JOINT RETURNS.--For purpose of subsection (a), in the case of a joint return for a taxable year which includes August 25, 2005--
“(A) such subsection shall apply if either spouse is a qualified individual, and
“(B) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.
“(2) UNIFORM APPLICATION OF ELECTION.--Any election made under subsection (a) shall apply with respect to both section 24(d) and section 32 of such Code.
“(3) ERRORS TREATED AS MATHEMATICAL ERROR.--For purposes of section 6213 of such Code, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error.
“(4) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC.--Except as otherwise provided in this section, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under subsection (a).”
EARNED INCOME CREDIT ADJUSTMENT FOR TAXABLE YEARS BEGINNING IN 1991
For adjustment of earned income credit under this section for taxable years beginning in 1991, see section 5 of Revenue Procedure 90-64, set out as a note under section 1 of this title.
EFFECTIVE AND TERMINATION DATES OF 1976 AMENDMENT
Section 401(e) of Pub. L. 94-455, as amended by Pub. L. 95-30, title I, Sec. 103(c), May 23, 1977, 91 4 Stat. 139; Pub. L. 95-600, title I, Sec. 103(b), Nov. 6, 1978, 92 Stat. 2771, provided that: ‘The amendments made by subsection (a) (amending sections 43 (now 32) and 6096 of this title) shall apply to taxable years ending after December 31, 1975, and shall cease to apply to taxable years ending after December 31, 1978. The amendments made by subsection (c) (amending this section) shall apply to taxable years ending after December 31, 1975. The amendments made by subsection (b) (amending sections 141 and 6012 of this title) shall apply to taxable years ending after December 31, 1975. The amendments made by subsection (d) (amending section 3402 of this title) shall apply to wages paid after September 14, 1976.’
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENTS
Section 2(g) of Pub. L. 94-164, as amended by Pub. L. 94-455, Sec. 402(b), provided that: ‘The amendments made by this section (amending sections 43 (now 32), 141, 3402, and 6012 of this title and provisions set out as notes under sections 42 and 43 (now 32) of this title) (other than by subsection (d) (enacting provisions set out as a note under this section)) apply to taxable years ending after December 31, 1975, and before January 1, 1978.
Subsection (d) applies to taxable years ending after December 31, 1975.'
Section 209(b) of Pub. L. 94-12, as amended by Pub. L. 94-164, Sec. 2(f), Dec. 23, 1975, 89 Stat. 972; Pub. L. 94-455, title IV, Sec. 401(c)(1)(A), Oct. 4, 1976, 90 Stat. 1557; Pub. L. 95-30, title I, Sec. 103(b), May 23, 1977, 91 Stat. 139; Pub. L. 95-600, title I, Sec. 103(a), Nov. 6, 1978, 92 Stat. 2771, provided that: ‘The amendments made by section 204 (enacting this section and amending sections 6201 and 6401 of this title) shall apply to taxable years beginning after December 31, 1974.’
SPECIAL RULE FOR DETERMINING EARNED INCOME
Section 504(c)(1) of Pub. L. 115-63 stated that:
“(1) IN GENERAL.—In the case of a qualified individual, if the earned income of the taxpayer for the taxable year which includes the applicable date is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting”
“(A) such earned income for the preceding taxable year, for”
“(B) such earned income for the taxable year which includes the applicable date.”
“In the case of a resident of Puerto Rico determining the credit allowed under section 24(d)(1)(B)(ii) of such Code, the preceding sentence shall be applied by substituting ‘social security taxes (as defined in section 24(d)(2)(A) of the Internal Revenue Code of 1986)’ for ‘earned income’ each place it appears.
SPECIAL RULE FOR DETERMINING EARNED INCOME
Section 504(c)(1)(B) of Pub. L. 115-63 provided that:
“(B) such earned income for the taxable year which includes the applicable date.”
PROGRAM TO INCREASE PUBLIC AWARENESS
Secretary of the Treasury, or Secretary's delegate, to establish taxpayer awareness program to inform taxpaying public of availability of earned income credit and child health insurance under this section, see section 11114 of Pub. L. 101-508, set out as a note under section 21 of this title.
EMPLOYEE NOTIFICATION
Section 111(e) of Pub. L. 99-514 provided that: ‘The Secretary of the Treasury is directed to require, under regulations, employers to notify any employee who has not had any tax withheld from wages (other than an employee whose wages are exempt from withholding pursuant to section 3402(n) of the Internal Revenue Code of 1986) that such employee may be eligible for a refund because of the earned income credit.'
DISREGARD OF REFUND FOR DETERMINATION OF ELIGIBILITY FOR FEDERAL BENEFITS OR ASSISTANCE
Section 2(d) of Pub. L. 94-164, as amended by Pub. L. 94-455, title IV, Sec. 402(a), Oct. 4, 1976, 90 Stat. 1558; Pub. L. 95-600, title I, Sec. 105(f), Nov. 6, 1978, 92 Stat. 2776; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘Any refund of Federal income taxes made to any individual by reason of section 43 (now 32) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) (relating to earned income credit), and any payment made by an employer under section 3507 of such Code (relating to advance payment of earned income credit) shall not be taken into account in any year ending before 1980 as income or receipts for purposes of determining the eligibility, for the month in which such refund is made or any month thereafter of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds, but only if such individual (or the family unit of which he is a member) is a recipient of benefits or assistance under such a program for the month before the month in which such refund is made.'
(Section 105(g)(3) of Pub. L. 95-600 provided that: ‘Subsection (f) (amending section 2(d) of Pub. L. 94-164, set out above) shall take effect on the date of enactment of this Act (Nov. 6, 1978).')