I.R.C. § 6428(a) In General —
In the case of an eligible individual, there shall be allowed as a credit against
the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount
equal to the sum of—
I.R.C. § 6428(a)(1) —
$1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
I.R.C. § 6428(a)(2) —
an amount equal to the product of $500 multiplied by the number of qualifying children
(within the meaning of section 24(c)) of the taxpayer.
I.R.C. § 6428(b) Treatment Of Credit —
The credit allowed by subsection (a) shall be treated as allowed by subpart C of part
IV of subchapter A of chapter 1.
I.R.C. § 6428(c) Limitation Based On Adjusted Gross Income —
The amount of the credit allowed by subsection (a) (determined without regard to this
subsection and subsection (e)) shall be reduced
(but not below zero) by 5 percent of so much of the taxpayer's adjusted gross income
as exceeds—
I.R.C. § 6428(c)(1) —
$150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
I.R.C. § 6428(c)(2) —
$112,500 in the case of a head of household, and
I.R.C. § 6428(c)(3) —
$75,000 in the case of a taxpayer not described in paragraph (1) or (2).
I.R.C. § 6428(d) Eligible Individual —
For purposes of this section, the term “eligible individual” means any individual
other than—
I.R.C. § 6428(d)(1) —
any nonresident alien individual,
I.R.C. § 6428(d)(2) —
any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year
in which the individual's taxable year begins, and
I.R.C. § 6428(d)(3) —
an estate or trust.
I.R.C. § 6428(e) Coordination With Advance Refunds Of Credit
I.R.C. § 6428(e)(1) In General —
The amount of credit which would (but for this paragraph)
be allowable under this section shall be reduced (but not below zero)
by the aggregate refunds and credits made or allowed to the taxpayer under subsection
(f). Any failure to so reduce the credit shall be treated as arising out of a mathematical
or clerical error and assessed according to section 6213(b)(1).
I.R.C. § 6428(e)(2) Joint Returns —
In the case of a refund or credit made or allowed under subsection (f) with respect
to a joint return, half of such refund or credit shall be treated as having been made
or allowed to each individual filing such return.
I.R.C. § 6428(f) Advance Refunds And Credits
I.R.C. § 6428(f)(1) In General —
Subject to paragraph (5), each individual who was an eligible individual for such
individual's first taxable year beginning in 2019 shall be treated as having made
a payment against the tax imposed by chapter 1 for such taxable year in an amount
equal to the advance refund amount for such taxable year.
I.R.C. § 6428(f)(2) Advance Refund Amount —
For purposes of paragraph (1), the advance refund amount is the amount that would
have been allowed as a credit under this section for such taxable year if this section
(other than subsection
(e) and this subsection) had applied to such taxable year.
I.R.C. § 6428(f)(3) Timing And Manner Of Payments
I.R.C. § 6428(f)(3)(A) Timing —
The Secretary shall, subject to the provisions of this title, refund or credit any
overpayment attributable to this subsection as rapidly as possible. No refund or credit
shall be made or allowed under this subsection after December 31, 2020.
I.R.C. § 6428(f)(3)(B) Delivery Of Payments —
Notwithstanding any other provision of law, the Secretary may certify and disburse
refunds payable under this subsection electronically to any account to which the payee
authorized, on or after January 1, 2018, the delivery of a refund of taxes under this
title or of a Federal payment (as defined in section 3332 of title 31, United States
Code).
I.R.C. § 6428(f)(3)(C) Waiver Of Certain Rules —
Notwithstanding section 3325 of title 31, United States Code, or any other provision
of law, with respect to any payment of a refund under this subsection, a disbursing
official in the executive branch of the United States Government may modify payment
information received from an officer or employee described in section 3325(a)(1)(B)
of such title for the purpose of facilitating the accurate and efficient delivery
of such payment. Except in cases of fraud or reckless neglect, no liability under
sections 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed
with respect to payments made under this subparagraph.
I.R.C. § 6428(f)(4) No Interest —
No interest shall be allowed on any overpayment attributable to this subsection.
I.R.C. § 6428(f)(5) Alternate Taxable Year —
In the case of an individual who, at the time of any determination made pursuant to
paragraph (3), has not filed a tax return for the year described in paragraph (1),
the Secretary may—
I.R.C. § 6428(f)(5)(A) —
apply such paragraph by substituting “2018”
for “2019”, and
I.R.C. § 6428(f)(5)(B) —
if the individual has not filed a tax return for such individual's first taxable year
beginning in 2018, use information with respect to such individual for calendar year
2019 provided in—
I.R.C. § 6428(f)(5)(B)(i) —
Form SSA-1099, Social Security Benefit Statement, or
I.R.C. § 6428(f)(5)(B)(ii) —
Form RRB-1099, Social Security Equivalent Benefit Statement.
I.R.C. § 6428(f)(6) Payment To Representative Payees And Fiduciaries
I.R.C. § 6428(f)(6)(A) In General —
In the case of any individual for which payment information is provided to the Secretary
by the Commissioner of Social Security, the Railroad Retirement Board, or the Secretary
of Veterans Affairs, the payment by the Secretary under paragraph (3) with respect
to such individual may be made to such individual's representative payee or fiduciary
and the entire payment shall be—
I.R.C. § 6428(f)(6)(A)(i) —
provided to the individual who is entitled to the payment, or
I.R.C. § 6428(f)(6)(A)(ii) —
used only for the benefit of the individual who is entitled to the payment.
I.R.C. § 6428(f)(6)(B) Application Of Enforcement Provisions.—
I.R.C. § 6428(f)(6)(B)(i) —
In the case of a payment described in subparagraph (A) which is made with respect
to a social security beneficiary or a supplemental security income recipient, section
1129(a)(3) of the Social Security Act
(42 U.S.C. 1320a–8(a)(3))
shall apply to such payment in the same manner as such section applies to a payment
under title II or XVI of such Act.
I.R.C. § 6428(f)(6)(B)(ii) —
In the case of a payment described in subparagraph (A) which is made with respect
to a railroad retirement beneficiary, section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to such payment in the same manner as such section applies to a payment
under such Act.
I.R.C. § 6428(f)(6)(B)(iii) —
In the case of a payment described in subparagraph (A) which is made with respect
to a veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States
Code, shall apply to such payment in the same manner as such sections apply to a payment
under such title.
I.R.C. § 6428(f)(7) Notice To Taxpayer —
Not later than 15 days after the date on which the Secretary distributed any payment
to an eligible taxpayer pursuant to this subsection, notice shall be sent by mail
to such taxpayer's last known address. Such notice shall indicate the method by which
such payment was made, the amount of such payment, and a phone number for the appropriate
point of contact at the Internal Revenue Service to report any failure to receive
such payment.
I.R.C. § 6428(g) Identification Number Requirement
I.R.C. § 6428(g)(1) Requirements For Credit —
Subject to paragraph (2), with respect to the credit allowed under subsection (a),
the following provisions shall apply:
I.R.C. § 6428(g)(1)(A) In General —
In the case of a return other than a joint return, the
$1,200 amount in subsection (a)(1) shall be treated as being zero unless the taxpayer
includes the valid identification number of the taxpayer on the return of tax for
the taxable year.
I.R.C. § 6428(g)(1)(B) Joint Returns —
In the case of a joint return, the $2,400 amount in subsection
(a)(1) shall be treated as being—
I.R.C. § 6428(g)(1)(B)(i) —
$1,200 if the valid identification number of only 1 spouse is included on the return
of tax for the taxable year, and
I.R.C. § 6428(g)(1)(B)(ii) —
zero if the valid identification number of neither spouse is so included.
I.R.C. § 6428(g)(1)(C) Qualifying Child —
A qualifying child of a taxpayer shall not be taken into account under subsection
(a)(2) unless—
I.R.C. § 6428(g)(1)(C)(i) —
the taxpayer includes the valid identification number of such taxpayer (or, in the
case of a joint return, the valid identification number of at least 1 spouse) on the
return of tax for the taxable year, and
I.R.C. § 6428(g)(1)(C)(ii) —
the valid identification number of such qualifying child is included on the return
of tax for the taxable year.
I.R.C. § 6428(g)(2) Requirements For Advance ReFunds —
No refund shall be payable under subsection (f) to an eligible individual who does
not include on the return of tax for the taxable year—
I.R.C. § 6428(g)(2)(A) —
such individual's valid identification number,
I.R.C. § 6428(g)(2)(B) —
in the case of a joint return, the valid identification number of such individual's
spouse, and
I.R.C. § 6428(g)(2)(C) —
in the case of any qualifying child taken into account under subsection (a)(2), the
valid identification number of such qualifying child.
I.R.C. § 6428(g)(3) Valid Identification Number
I.R.C. § 6428(g)(3)(A) In General —
For purposes of this subsection, the term “valid identification number” means a social
security number (as such term is defined in section 24(h)(7)).
I.R.C. § 6428(g)(3)(B) Adoption Taxpayer Identification Number —
For purposes of paragraphs (1)(C) and (2)(C), in the case of a qualifying child who
is adopted or placed for adoption, the term “valid identification number” shall include
the adoption taxpayer identification number of such child.
I.R.C. § 6428(g)(4) Special Rule For Members Of The Armed Forces —
Paragraphs (1)(B) and (2)(B) shall not apply in the case where at least 1 spouse was
a member of the Armed Forces of the United States at any time during the taxable year
and the valid identification number of at least 1 spouse is included on the return
of tax for the taxable year.
I.R.C. § 6428(g)(5) Mathematical Or Clerical Error Authority —
Any omission of a correct valid identification number required under this subsection
shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
I.R.C. § 6428(h) Regulations —
The Secretary shall prescribe such regulations or other guidance as may be necessary
to carry out the purposes of this section, including any such measures as are deemed
appropriate to avoid allowing multiple credits or rebates to a taxpayer.
(Added by Pub. L. 116-136, Div. A, title II, Sec. 2201, Mar. 27, 2020; Pub. L. 116-260, Div. N, title II, Sec. 273, Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
AMENDMENTS
2020 -- Subsec. (c)(1). Pub. L. 116-260, Div. N, Sec. 273(a)(1), amended par. (1) by inserting “or a surviving spouse (as
defined in section 2(a))” after “joint return”.
Subsec. (f)(3)(A). Pub. L. 116-260, Div. N, Sec. 273(a)(2)(A), amended subpar. (A)
by substituting “subsection” for “section”.
Subsec. (f)(4). Pub. L. 116-260, Div. N, Sec. 273(a)(2)(B), amended par. (4)
by substituting “subsection” for “section”.
Subsec. (f)(6). Pub. L. 116-260, Div. N, Sec. 273(a)(2)(C), amended by redesignating par. (6) as par. (7) and inserting
a new par. (6).
Subsec. (g). Pub. L. 116-260, Div. N, Sec. 273(a)(3), struck subsec. (g) and inserted new subsec. (g). Prior to
amendment it read as follows:
“(g) Identification Number Requirement
“(1) In General — No credit shall be allowed under subsection (a) to an eligible individual
who does not include on the return of tax for the taxable year—
“(A) such individual's valid identification number,
“(B) in the case of a joint return, the valid identification number of such individual's
spouse, and
“(C) in the case of any qualifying child taken into account under subsection (a)(2),
the valid identification number of such qualifying child.
“(2) Valid Identification Number
“(A) In General — For purposes of paragraph
(1), the term ‘valid identification number’ means a social security number (as such
term is defined in section 24(h)(7)).
“(B) Adoption Taxpayer Identification Number —
For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted
or placed for adoption, the term “valid identification number” shall include the adoption
taxpayer identification number of such child.
“(3) Special Rule For Members Of The Armed Forces — Paragraph (1)(B) shall not apply
in the case where at least spouse was a member of the Armed Forces of the United States
at any time during the taxable year and at least 1 spouse satisfies paragraph (1)(A).
“(4) Mathematical Or Clerical Error Authority —
Any omission of a correct valid identification number required under this subsection
shall be treated as a mathematical or clerical error for purposes of applying section
6213(g)(2) to such omission.”
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. N, Sec. 273, effective as if included in section 2201 of the CARES Act.
EFFECTIVE DATE
Effective on the date of the enactment of this Act [Enacted: Mar. 27, 2020].
AMENDMENTS TO SECTION 2201 OF THE CARES ACT
Section 273(b) of Pub. L. 116-260, Div. N, provided:
“Section 2201 of the CARES Act is amended—
“(1) in subsection (d), by striking ‘‘Any credit or refund allowed or made to any
individual by reason of section 6428 of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (c) of this section’’
and inserting ‘‘Any refund payable by reason of section 6428(f)
of the Internal Revenue Code of 1986 (as added by this section), or any such refund payable by reason of subsection
(c) of this section,’’, and
“(2) in subsection (f)(1)(A)(i), by inserting after ‘‘September 30, 2021’’ the following:
‘‘, of which up to $63,000,000 may be transferred to the ‘‘Department of the Treasury—Bureau
of the Fiscal Service—Debt Collection’’
for necessary expenses related to the implementation and operation of Government wide
debt collection activities pursuant to sections 3711(g), 3716, and 3720A of title
31, United States Code, and subsections
(c) through (f) of section 6402 of the Internal Revenue Code of 1986 to offset the loss resulting from the coronavirus pandemic of debt collection
receipts collected pursuant to such sections: Provided, That amounts transferred pursuant to this clause shall be in addition to any other
funds made available for this purpose.”
Section 2201(c)-(e) of Pub. L. 116-136 provided the following provision:
“(c) TREATMENT OF POSSESSIONS
(1) PAYMENTS TO POSSESSIONS.—
“(A) MIRROR CODE POSSESSION.—The Secretary of the Treasury 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 amendments made by this section. Such amounts
shall be determined by the Secretary of the Treasury based on information provided
by the government of the respective possession.
“(B) OTHER POSSESSIONS.—The Secretary of the Treasury 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 as being equal to the aggregate benefits
(if any) that would have been provided to residents of such possession by reason of
the amendments made by 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, under which
such possession will promptly distribute such payments to its residents.
“(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES.—No credit
shall be allowed against United States income taxes under section 6428 of the Internal Revenue Code of 1986 (as added by this section) to any person—
”(A) to whom a credit is allowed against taxes imposed by the possession by reason
of the amendments made by this section, or
“(B) who is eligible for a payment under a plan described in paragraph (1)(B).
“(3) DEFINITIONS AND SPECIAL RULES.—
“(A) POSSESSION OF THE UNITED STATES.—For purposes of this subsection, the term “possession
of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
“(B) MIRROR CODE TAX SYSTEM.—For purposes of this subsection, 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.
“(C) TREATMENT OF PAYMENTS.—For purposes of section 1324 of title 31, United States
Code, the payments under this subsection shall be treated in the same manner as a
refund due from a credit provision referred to in subsection (b)(2) of such section.
“(d) EXCEPTION FROM REDUCTION OR OFFSET.—Any credit or refund allowed or made to any
individual by reason of section 6428 of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (c) of this section
shall not be—
“(1) subject to reduction or offset pursuant to section 3716 or 3720A of title 31,
United States Code,
“(2) subject to reduction or offset pursuant to subsection (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986, or
“(3) reduced or offset by other assessed Federal taxes that would otherwise be subject
to levy or collection.
“(e) PUBLIC AWARENESS CAMPAIGN.—The Secretary of the Treasury (or the Secretary's
delegate) shall conduct a public awareness campaign, in coordination with the Commissioner
of Social Security and the heads of other relevant Federal agencies, to provide information
regarding the availability of the credit and rebate allowed under section 6428 of the Internal Revenue Code of 1986 (as added by this section), including information with respect to individuals
who may not have filed a tax return for taxable year 2018 or 2019.”
PRIOR PROVISIONS
A prior provision was struck by Pub. L. 113-295, effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
§ 6428. 2008 Recovery Rebates For Individuals
“(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as
a credit against the tax imposed by subtitle A for the first taxable year beginning
in 2008 an amount equal to the lesser of—
“(1) net income tax liability, or
“(2) $600 ($1,200 in the case of a joint return).
“(b) SPECIAL RULES.—
“(1) IN GENERAL.—In the case of a taxpayer described in paragraph (2)—
“(A) the amount determined under subsection
(a) shall not be less than $300 ($600 in 20 the case of a joint return), and
“(B) the amount determined under subsection
(a) (after the application of subparagraph (A)) shall be increased by the product
of $300 multiplied by the number of qualifying children
(within the meaning of section 24(c)) of the taxpayer.
“(2) TAXPAYER DESCRIBED.—A taxpayer is described in this paragraph if the taxpayer—
“(A) has qualifying income of at least $3,000, or
“(B) has—
“(i) net income tax liability which is greater than zero, and
“(ii) gross income which is greater than the sum of the basic standard deduction plus
the exemption amount
(twice the exemption amount in the case of a joint return).
“(c) TREATMENT OF CREDIT.—The credit allowed by subsection (a) shall be treated as
allowed by subpart C of part IV of subchapter A of chapter 1.
“(d) LIMITATION BASED ON ADJUSTED GROSS INCOME.—The amount of the credit allowed by
subsection (a) (determined without regard to this subsection and subsection (f)) shall
be reduced (but not below zero) by 5 percent of so much of the taxpayer's adjusted
gross income as exceeds $75,000 ($150,000 in the case of a joint return).
“(e) DEFINITIONS.—For purposes of this section—
“(1) QUALIFYING INCOME.—The term ”qualifying income” means—
“(A) earned income,
“(B) social security benefits (within the meaning of section 86(d)), and
“(C) any compensation or pension received under chapter 11, chapter 13, or chapter
15 of title 38, United States Code.
“(2) NET INCOME TAX LIABILITY.—The term “net income tax liability” means the excess
of—
“(A) the sum of the taxpayer's regular tax liability (within the meaning of section
26(b)) and the tax imposed by section 55 for the taxable year, over
“(B) the credits allowed by part IV (other than section 24 and subpart C thereof)
of subchapter A of chapter 1.
“(3) ELIGIBLE INDIVIDUAL.—The term “eligible individual” means any individual other
than—
“(A) any nonresident alien individual,
“(B) any individual with respect to whom a deduction under section 151 is allowable
to another taxpayer for a taxable year beginning in the calendar year in which the
individual's taxable year begins, and
“(C) an estate or trust.
“(4) EARNED INCOME.—The term “earned income” has the meaning set forth in section
32(c)(2) except that such term shall not include net earnings from self-employment
which are not taken into account in computing taxable income.
“(5) BASIC STANDARD DEDUCTION; EXEMPTION AMOUNT.—The terms “basic standard deduction”
and “exemption amount” shall have the same respective meanings as when used in section
6012(a).
“(f) COORDINATION WITH ADVANCE REFUNDS OF CREDIT.—
“(1) IN GENERAL.—The amount of credit which would (but for this paragraph) be allowable
under this section shall be reduced (but not below zero) by the aggregate refunds
and credits made or allowed to the taxpayer under subsection (g). Any failure to so
reduce the credit shall be treated as arising out of a mathematical or clerical error
and assessed according to section 6213(b)(1).
“(2) JOINT RETURNS.—In the case of a refund or credit made or allowed under subsection
(g) with respect to a joint return, half of such refund or credit shall be treated
as having been made or allowed to each individual filing such return.
“(g) ADVANCE REFUNDS AND CREDITS.—
“(1) IN GENERAL.—Each individual who was an eligible individual for such individual's
first taxable year beginning in 2007 shall be treated as having made a payment against
the tax imposed by chapter 1 for such first taxable year in an amount equal to the
advance refund amount for such taxable year.
“(2) ADVANCE REFUND AMOUNT.—For purposes of paragraph (1), the advance refund amount
is the amount that would have been allowed as a credit under this section for such
first taxable year if this section (other than subsection (f) and this subsection)
had applied to such taxable year.
“(3) TIMING OF PAYMENTS.—The Secretary shall, subject to the provisions of this title,
refund or credit any overpayment attributable to this section as rapidly as possible.
No refund or credit shall be made or allowed under this subsection after December
31, 2008.
“(4) NO INTEREST.—No interest shall be allowed on any overpayment attributable to
this section.
“(h) IDENTIFICATION NUMBER REQUIREMENT.—
“(1) IN GENERAL.—No credit shall be allowed under subsection (a) to an eligible individual
who does not include on the return of tax for the taxable year—
“(A) such individual's valid identification number,
“(B) in the case of a joint return, the valid identification number of such individual's
spouse, and
“(C) in the case of any qualifying child taken into account under subsection (b)(1)(B),
the valid identification number of such qualifying child.
“(2) VALID IDENTIFICATION NUMBER.—For purposes of paragraph (1), the term “valid identification
number”
means a social security number issued to an individual by the Social Security Administration.
Such term shall not include a TIN issued by the Internal Revenue Service.
“(3) SPECIAL RULE FOR MEMBERS OF THE ARMED FORCES.—Paragraph (1) shall not apply to
a joint return where at least 1 spouse was a member of the Armed Forces of the United
States at any time during the taxable year.”
A prior Sec. 6428, 1981 rate reduction tax credit, was repealed by Pub. L. 101-508, title XI, Sec. 11801(a)(47), Nov. 5, 1990, 104 Stat. 1388-522, effective on the
date of enactment of this Act [Enacted: Nov. 5, 1990].
Savings Provision: For provisions that nothing in repeal by Pub. L. 101-508 be construed to affect treatment of certain transactions occurring, property acquired,
or items of income, loss, deduction, or credit taken into account prior to Nov.
5, 1990, for purposes of determining liability for tax for periods ending after Nov.
5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note under section 29 of this title.
[6429, 6430. Repealed. Pub. L. 100-418, title I, 1941(b)(1), Aug. 23, 1988, 102 Stat. 1323]
Section 6429, added Pub. L. 96-499, title XI, 1131(a)(1), Dec. 5, 1980, 94 Stat. 2691, and amended Pub. L. 97-34, title VI, 601(a)(1)-(5), Aug. 13, 1981, 95 Stat. 335, 336; Pub. L. 97-448, title I, 106(a)(1),
(3), Jan. 12, 1983, 96 Stat. 2387, 2388, related to credit and refund of chapter 45
windfall profit taxes on domestic crude oil paid by royalty owners.
Section 6430, added Pub. L. 97-448, title I, 106(a)(4)(A), Jan. 12, 1983, 96 Stat. 2388, related to credit or refund
of windfall profit taxes to certain trust beneficiaries.
Repeal of Secs. 6429 and 6430 applicable to crude oil removed from the premises on
or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100-418, set out as an Effective Date of 1988 Amendment note under section 164 of this title.
