26 U.S.C. § 32 | Earned income

(a)

Allowance of credit

(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.

(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—

(A)

the credit percentage of the earned income amount, over

(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.

(b)

Percentages and amounts

For purposes of subsection (a)—

(1)

Percentages

In the case of an eligible individual with:	The credit percentage is:	The phaseout percentage is:
1 qualifying child	34	15.98
2 qualifying children	40	21.06
3 or more qualifying children	45	21.06
No qualifying children	7.65	7.65

The credit percentage and the phaseout percentage shall be determined as follows:

(2)

Amounts

(A)

In general

In the case of an eligible individual with:	The earned income amount is:	The phaseout amount is:
1 qualifying child	$6,330	$11,610
2 or more qualifying children	$8,890	$11,610
No qualifying children	$4,220	$5,280

1 qualifying child

$6,330

$11,610

2 or more qualifying children

$8,890

$11,610

No qualifying children

$4,220

$5,280

Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined 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 $5,000.

(c)

Definitions and special rules

For purposes of this section—

(1)

Eligible individual

(A)

In general

The term “eligible individual” means—

(i)

any individual who has a qualifying child for the taxable year, or

(ii)

any other individual who does not have a qualifying child for the taxable year, if—

(I)

such individual’s principal place of abode is in the United States for more than one-half of such taxable year,

(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

(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.

(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.

(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.

(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.

(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)

such individual’s taxpayer identification number, and

(ii)

if the individual is married, the taxpayer identification number of such individual’s spouse.

(2)

Earned income

(A)

The term “earned income” means—

(i)

wages, salaries, tips, and other employee compensation, but only if such amounts are includible in gross income for the taxable year, plus

(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).

(B)

For purposes of subparagraph (A)—

(i)

the earned income of an individual shall be computed without regard to any community property laws,

(ii)

no amount received as a pension or annuity shall be taken into account,

(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,

(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,

(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

(vi)

a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.

(3)

Qualifying child

(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)).

(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)).

(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.

(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).

(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.

(d)

Married individuals

(1)

In general

In the case of an individual who is married, this section shall apply only if a joint return is filed for the taxable year under section 6013.

(2)

Determination of marital status

For purposes of this section—

(A)

In general

Except as provided in subparagraph (B), marital status shall be determined under section 7703(a).

(B)

Special rule for separated spouse

An individual shall not be treated as married if such individual—

(i)

is married (as determined under section 7703(a)) and does not file a joint return for the taxable year,

(ii)

resides with a qualifying child of the individual for more than one-half of such taxable year, and

(iii)

(I)

during the last 6 months of such taxable year, does not have the same principal place of abode as the individual’s spouse, or

(II)

has a decree, instrument, or agreement (other than a decree of divorce) described in section 121(d)(3)(C) with respect to the individual’s spouse and is not a member of the same household with the individual’s spouse by the end of the taxable year.

(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.

(f)

Amount of credit to be determined under tables

(1)

In general

The amount of the credit allowed by this section shall be determined under tables prescribed by the Secretary.

(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—

(A)

for earned income between $0 and the amount of earned income at which the credit is phased out under subsection (b), and

(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).

[(g)

Pub. L. 111–226, title II, § 219(a)(2)Aug. 10, 2010124 Stat. 2403 Repealed. , , ]

[(h)

Pub. L. 107–16, title III, § 303(c)June 7, 2001115 Stat. 55 Repealed. , , ]

(i)

Denial of credit for individuals having excessive investment income

(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 $10,000.

(2)

Disqualified income

For purposes of paragraph (1), the term “disqualified income” means—

(A)

interest or dividends to the extent includible in gross income for the taxable year,

(B)

interest received or accrued during the taxable year which is exempt from tax imposed by this chapter,

(C)

the excess (if any) of—

(i)

gross income from rents or royalties not derived in the ordinary course of a trade or business, over

(ii)

the sum of—

(I)

the deductions (other than interest) which are clearly and directly allocable to such gross income, plus

(II)

interest deductions properly allocable to such gross income,

(D)

the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and

(E)

the excess (if any) of—

(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

(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.

(j)

Inflation adjustments

(1)

In general

In the case of any taxable year beginning after 2015 (2021 in the case of the dollar amount in subsection (i)(1)), each of the dollar amounts in subsections (b)(2) and (i)(1) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) thereof—

(i)

in the case of amounts in subsection (b)(2)(A), “calendar year 1995” for “calendar year 2016”,

(ii)

in the case of the $5,000 amount in subsection (b)(2)(B), “calendar year 2008” for “calendar year 2016”, and

(iii)

in the case of the $10,000 amount in subsection (i)(1), “calendar year 2020” for “calendar year 2016”.

(2)

Rounding

(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.

(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.

(k)

Restrictions on taxpayers who improperly claimed credit in prior year

(1)

Taxpayers making prior fraudulent or reckless claims

(A)

In general

No credit shall be allowed under this section for any taxable year in the disallowance period.

(B)

Disallowance period

For purposes of paragraph (1), the disallowance period is—

(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

(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).

(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.

(l)

Coordination with certain means-tested programs

For purposes of—

(1)

the United States Housing Act of 1937,

(2)

title V of the Housing Act of 1949,

(3)

section 101 of the Housing and Urban Development Act of 1965,

(4)

sections 221(d)(3), 235, and 236 of the National Housing Act, and

(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).

(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.

(n)

Special rules for individuals without qualifying children

December 31, 2020January 1, 2022In the case of any taxable year beginning after , and before —

(1)

Decrease in minimum age for credit

(A)

In general

Subsection (c)(1)(A)(ii)(II) shall be applied by substituting “the applicable minimum age” for “age 25”.

(B)

Applicable minimum age

For purposes of this paragraph, the term “applicable minimum age” means—

(i)

except as otherwise provided in this subparagraph, age 19,

(ii)

in the case of a specified student (other than a qualified former foster youth or a qualified homeless youth), age 24, and

(iii)

in the case of a qualified former foster youth or a qualified homeless youth, age 18.

(C)

Specified student

For purposes of this paragraph, the term “specified student” means, with respect to any taxable year, an individual who is an eligible student (as defined in section 25A(b)(3)) during at least 5 calendar months during the taxable year.

(D)

Qualified former foster youth

For purposes of this paragraph, the term “qualified former foster youth” means an individual who—

(i)

on or after the date that such individual attained age 14, was in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under part B or part E of title IV of the Social Security Act (without regard to whether Federal assistance was provided with respect to such child under such part E), and

(ii)

provides (in such manner as the Secretary may provide) consent for entities which administer a plan under part B or part E of title IV of the Social Security Act to disclose to the Secretary information related to the status of such individual as a qualified former foster youth.

(E)

Qualified homeless youth

For purposes of this paragraph, the term “qualified homeless youth” means, with respect to any taxable year, an individual who certifies, in a manner as provided by the Secretary, that such individual is either an unaccompanied youth who is a homeless child or youth, or is unaccompanied, at risk of homelessness, and self-supporting.

(2)

Elimination of maximum age for credit

Subsection (c)(1)(A)(ii)(II) shall be applied without regard to the phrase “but not attained age 65”.

(3)

Increase in credit and phaseout percentages

The table contained in subsection (b)(1) shall be applied by substituting “15.3” for “7.65” each place it appears therein.

(4)

Increase in earned income and phaseout amounts

(A)

In general

The table contained in subsection (b)(2)(A) shall be applied—

(i)

by substituting “$9,820” for “$4,220”, and

(ii)

by substituting “$11,610” for “$5,280”.

(B)

Coordination with inflation adjustment

Subsection (j) shall not apply to any dollar amount specified in this paragraph.

Pub. L. 94–12, title II, § 204(a)Mar. 29, 197589 Stat. 30 Pub. L. 94–164, § 2(c)Dec. 23, 197589 Stat. 971 Pub. L. 94–455, title IV, § 401(c)(1)(B)Oct. 4, 197690 Stat. 1557 Pub. L. 95–600, title INov. 6, 197892 Stat. 2772 Pub. L. 95–615, § 202(g)(5)Nov. 8, 197892 Stat. 3100 Pub. L. 96–222, title IApr. 1, 198094 Stat. 194 Pub. L. 97–34, title IAug. 13, 198195 Stat. 194 Pub. L. 98–21, title I, § 124(c)(4)(B)Apr. 20, 198397 Stat. 91 Pub. L. 98–369, div. A, title IVJuly 18, 198498 Stat. 801 Pub. L. 99–514, title IOct. 22, 1986100 Stat. 2104 Pub. L. 100–647, title INov. 10, 1988102 Stat. 3350 Pub. L. 101–508, title XINov. 5, 1990104 Stat. 1388–405 Pub. L. 103–66, title XIII, § 13131(a)Aug. 10, 1993107 Stat. 433–435 Pub. L. 103–465, title VIIDec. 8, 1994108 Stat. 5002 Pub. L. 104–7, § 4(a)Apr. 11, 1995109 Stat. 95 Pub. L. 104–193, title IV, § 451(a)Aug. 22, 1996110 Stat. 2276 Pub. L. 105–34, title I, § 101(b)Aug. 5, 1997111 Stat. 798 Pub. L. 105–206, title VIJuly 22, 1998112 Stat. 791 Pub. L. 106–170, title IV, § 412(a)Dec. 17, 1999113 Stat. 1917 Pub. L. 107–16, title II, § 201(c)(3)June 7, 2001115 Stat. 47 Pub. L. 107–147, title IV, § 416(a)(1)Mar. 9, 2002116 Stat. 55 Pub. L. 108–311, title I, § 104(b)Oct. 4, 2004118 Stat. 1169 Pub. L. 109–135, title III, § 302(a)Dec. 21, 2005119 Stat. 2608 Pub. L. 109–432, div. A, title I, § 106(a)Dec. 20, 2006120 Stat. 2938 Pub. L. 110–234, title IV, § 4002(b)(1)(B)May 22, 2008122 Stat. 1096 Pub. L. 110–245, title I, § 102(a)June 17, 2008122 Stat. 1625 Pub. L. 110–246, § 4(a)June 18, 2008122 Stat. 1664 Pub. L. 111–5, div. B, title I, § 1002(a)Feb. 17, 2009123 Stat. 312 Pub. L. 111–226, title II, § 219(a)(2)Aug. 10, 2010124 Stat. 2403 Pub. L. 111–312, title I, § 103(c)Dec. 17, 2010124 Stat. 3299 Pub. L. 112–240, title I, § 103(c)Jan. 2, 2013126 Stat. 2319 Pub. L. 113–295, div. A, title IIDec. 19, 2014128 Stat. 4027 Pub. L. 114–113, div. Q, title I, § 103(a)Dec. 18, 2015129 Stat. 3044 Pub. L. 115–97, title I, § 11002(d)(1)(D)Dec. 22, 2017131 Stat. 2060 Pub. L. 115–141, div. U, title I, § 101(a)Mar. 23, 2018132 Stat. 1160 Pub. L. 117–2, title IXMar. 11, 2021135 Stat. 152–154 (Added , , , § 43; amended , , ; , (2), , ; , §§ 104(a)–(e), 105(a), , , 2773; , formerly § 202(f)(5), , , renumbered § 202(g)(5) and amended , §§ 101(a)(1), (2)(E), 108(a)(1)(A), , , 195, 223; , §§ 111(b)(2), 112(b)(3), , , 195; , , ; renumbered § 32 and amended , §§ 423(c)(3), 471(c), title X, § 1042(a)–(d)(2), , , 826, 1043; , §§ 104(b)(1)(B), 111(a)–(d)(1), title XII, § 1272(d)(4), title XIII, § 1301(j)(8), , , 2107, 2594, 2658; , §§ 1001(c), 1007(g)(12), , , 3436; , §§ 11101(d)(1)(B), 11111(a), (b), (e), , , 1388–408, 1388–412, 1388–413; –(d)(1), , ; , §§ 721(a), 722(a), 723(a), 742(a), , , 5003, 5010; , , ; , (b), title IX, §§ 909(a), (b), 910(a), (b), , , 2277, 2351, 2352; , title III, § 312(d)(2), title X, § 1085(a)(1), (b)–(d), , , 840, 955, 956; , §§ 6003(b), 6010(p)(1), (2), 6021(a), (b), , , 816, 817, 823, 824; , , ; , title III, § 303(a)–(f), (h), , , 55–57; , , ; , title II, § 205, , , 1176; , , ; , , ; , (2)(O), , , 1097; , , ; , title IV, § 4002(b)(1)(B), (2)(O), , , 1857, 1858; , , ; , , ; , , ; , , ; , §§ 206(a), 221(a)(3), , , 4037; –(c), title II, § 204(a), , , 3045, 3081; , , ; , title IV, § 401(b)(4), , , 1201; , §§ 9621(a), 9622(a), 9623(a), (b), 9624(a), (b), , .)

Inflation Adjusted Items for Certain Years

section 1 of this titleFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under .

Editorial Notes

References in Text

act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42The Social Security Act, referred to in subsecs. (c)(2)(B)(v), (m), and (n)(1)(D), is , . Parts A, B, and E of title IV of the Act are classified generally to parts A (§ 601 et seq.), B (§ 620 et seq.), and E (§ 670 et seq.), respectively, of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. Sections 205(c)(2)(B)(i) and 407(d)(4), (7) of the Act are classified to sections 405(c)(2)(B)(i) and 607(d)(4), (7), respectively, of Title 42. For complete classification of this Act to the Code, see and Tables.

lact Sept. 1, 1937, ch. 896 Pub. L. 93–383, title II, § 201(a)Aug. 22, 197488 Stat. 653 section 1437 of Title 42The United States Housing Act of 1937, referred to in subsec. ()(1), is , as revised generally by , , , which is classified generally to chapter 8 (§ 1437 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note under and Tables.

lact July 15, 1949, ch. 338 63 Stat. 413 section 1441 of Title 42The Housing Act of 1949, referred to in subsec. ()(2), is , . Title V of the Act is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of Title 42. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

lsection 101 of Pub. L. 89–117Aug. 10, 196579 Stat. 451 section 1701s of Title 12Section 101 of the Housing and Urban Development Act of 1965, referred to in subsec. ()(3), is , title I, , , which enacted , Banks and Banking, and amended sections 1451 and 1465 of Title 42.

llSections 221(d)(3), 235, and 236 of the National Housing Act, referred to in subsec. ()(4), are classified to sections 1715(d)(3), 1715z, and 1715z–1, respectively, of Title 12.

lPub. L. 88–525Aug. 31, 196478 Stat. 703 section 2011 of Title 7The Food and Nutrition Act of 2008, referred to in subsec. ()(5), is , , , which is classified generally to chapter 51 (§ 2011 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Codification

Pub. L. 110–234 Pub. L. 110–246 Pub. L. 110–234 section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .

Prior Provisions

section 33 of this titleA prior section 32 was renumbered .

Amendments

Pub. L. 117–2, § 9623(b)(1)2021—Subsec. (c)(1)(A). , struck out concluding provisions which read as follows: “For purposes of the preceding sentence, marital status shall be determined under section 7703.”

Pub. L. 117–2, § 9623(b)(2)Subsec. (c)(1)(E)(ii). , struck out “(within the meaning of section 7703)” after “is married”.

Pub. L. 117–2, § 9622(a)Subsec. (c)(1)(F). , struck out heading and text of subpar. (F). Text read as follows: “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).”

Pub. L. 117–2, § 9623(a)Subsec. (d). , designated existing provisions as par. (1), inserted heading, and added par. (2).

Pub. L. 117–2, § 9623(b)(3)Subsec. (d)(1). , struck out “(within the meaning of section 7703)” after “is married”.

Pub. L. 117–2, § 9624(a)Subsec. (i)(1). , substituted “$10,000” for “$2,200”.

Pub. L. 117–2, § 9624(b)(1)Subsec. (j)(1). , inserted “(2021 in the case of the dollar amount in subsection (i)(1))” after “2015” in introductory provisions.

Pub. L. 117–2, § 9624(b)(2)(A)Subsec. (j)(1)(B)(i). , substituted “subsection (b)(2)(A)” for “subsections (b)(2)(A) and (i)(1)”.

Pub. L. 117–2, § 9624(b)(2)(B)Subsec. (j)(1)(B)(iii). –(4), added cl. (iii).

Pub. L. 117–2, § 9621(a)Subsec. (n). , added subsec. (n).

Pub. L. 115–141, § 101(a)(1)2018—Subsec. (b)(2)(B). , struck out cl. (i) designation and heading and struck out cls. (ii) and (iii) which related to inflation adjustment for taxable years after 2015 and application of rounding provisions in subsec. (j)(2)(A) of this section, respectively.

Pub. L. 115–141, § 101(a)(2)(A)Subsec. (j)(1). , substituted “after 2015” for “after 1996” in introductory provisions.

Pub. L. 115–141, § 101(a)(2)(B)Subsec. (j)(1)(B). , inserted “by substituting in subparagraph (A)(ii) thereof” after “, determined” in introductory provisions.

Pub. L. 115–141, § 101(a)(2)(C)Subsec. (j)(1)(B)(i). , struck out “by substituting” after “(i)(1),” and “in subparagraph (A)(ii) thereof” after “ ‘calendar year 2016’ ”.

Pub. L. 115–141, § 101(a)(2)(D)Subsec. (j)(1)(B)(ii). , substituted “$5,000 amount in subsection (b)(2)(B), ‘calendar year 2008’ for ‘calendar year 2016’ ” for “$3,000 amount in subsection (b)(2)(B)(iii), by substituting ‘calendar year 2007’ for ‘calendar year 2016’ in subparagraph (A)(ii) of such section 1”.

lPub. L. 115–141, § 401(b)(4)Subsec. (). , struck out “, and any payment made to such individual (or such spouse) by an employer under section 3507,” after “reason of this section” in concluding provisions.

Pub. L. 115–972017—Subsecs. (b)(2)(B)(ii)(II), (j)(1)(B)(i), (ii). substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

Pub. L. 114–113, § 103(a)2015—Subsec. (b)(1). , amended par. (1) generally. Prior to amendment, par. (1) provided credit and phaseout percentages for eligible individuals with 1, 2 or more, or no qualifying children.

Pub. L. 114–113, § 103(b)Subsec. (b)(2)(B). , amended subpar. (B) generally. Prior to amendment, text read as follows: “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.”

Pub. L. 114–113, § 103(c)Subsec. (b)(3). , struck out par. (3) which provided for increased credit percentage for taxpayers with 3 or more qualifying children and reduction of marriage penalty in taxable years beginning after 2008 and before 2018, with adjustment for inflation.

Pub. L. 114–113, § 204(a)Subsec. (m). , inserted “on or before the due date for filing the return for the taxable year” before period at end.

Pub. L. 113–295, § 221(a)(3)(A)2014—Subsec. (b)(1). , struck out subpar. (A) designation, heading “In general”, and introductory provisions “In the case of taxable years beginning after 1995:” before the table and struck out subpars. (B) and (C) which related to transitional percentages for 1995 and transitional percentages for 1994, respectively, and realigned margins.

Pub. L. 113–295, § 221(a)(3)(B)Subsec. (b)(2)(B). , substituted “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.”

Pub. L. 113–295, § 206(a)Subsec. (b)(3)(B)(ii). , substituted “after 2009” for “in 2010” in introductory provisions.

Pub. L. 112–2402013—Subsec. (b)(3). substituted “for certain years” for “2009, 2010, 2011, and 2012” in heading and “after 2008 and before 2018” for “in 2009, 2010, 2011, or 2012” in introductory provisions.

Pub. L. 111–3122010—Subsec. (b)(3). substituted “2009, 2010, 2011, and 2012” for “2009 and 2010” in heading and “, 2010, 2011, or 2012” for “or 2010” in introductory provisions.

Pub. L. 111–226Subsec. (g). struck out subsec. (g). Text read as follows:

Recapture of excess advance payments“(1) .—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.

Reconciliation of payments advanced and credit allowed“(2) .—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.”

Pub. L. 111–52009—Subsec. (b)(3). added par. (3).

Pub. L. 110–2452008—Subsec. (c)(2)(B)(vi). amended cl. (vi) generally. Prior to amendment, cl. (vi) read as follows: “in the case of any taxable year ending—

“(I) after the date of the enactment of this clause, and

January 1, 2008“(II) before ,

a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.”

lPub. L. 110–246, § 4002(b)(1)(B)Subsec. ()(5). , (2)(O), substituted “Food and Nutrition Act of 2008” for “Food Stamp Act of 1977”.

Pub. L. 109–4322006—Subsec. (c)(2)(B)(vi)(II). substituted “2008” for “2007”.

Pub. L. 109–1352005—Subsec. (c)(2)(B)(vi)(II). substituted “2007” for “2006”.

Pub. L. 108–311, § 205(b)(1)2004—Subsec. (c)(1)(C) to (G). , redesignated subpars. (D) to (G) as (C) to (F), respectively, and struck out former subpar. (C) which related to 2 or more claiming qualifying child.

Pub. L. 108–311, § 104(b)Subsec. (c)(2)(B)(vi). , added cl. (vi).

Pub. L. 108–311, § 205(a)Subsec. (c)(3). , amended par. (3) generally, substituting subpars. (A) to (D) for former subpars. (A) to (E), relating to qualifying child in general, relationship test, age requirements, identification requirements, and place of abode requirements.

Pub. L. 108–311, § 205(b)(2)Subsec. (c)(4). , substituted “(3)(C)” for “(3)(E)”.

Pub. L. 108–311, § 205(b)(3)Subsec. (m). , substituted “(c)(1)(E)” for “(c)(1)(F)”.

Pub. L. 107–1472002—Subsec. (g)(2). substituted “part” for “subpart”.

Pub. L. 107–16, § 303(d)(1)2001—Subsec. (a)(2)(B). , struck out “modified” before “adjusted gross income”.

Pub. L. 107–16, § 303(a)(1)Subsec. (b)(2). , reenacted par. heading without change, designated existing provisions as subpar. (A), inserted subpar. heading, substituted “Subject to subparagraph (B), the earned” for “The earned”, and added subpar. (B).

Pub. L. 107–16, § 303(f)Subsec. (c)(1)(C). , amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “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.”

Pub. L. 107–16, § 303(b)Subsec. (c)(2)(A)(i). , inserted “, but only if such amounts are includible in gross income for the taxable year” after “other employee compensation”.

Pub. L. 107–16, § 303(e)(2)(B)Subsec. (c)(3)(A)(ii). , struck out “except as provided in subparagraph (B)(iii),” before “who has”.

Pub. L. 107–16, § 303(e)(1)Subsec. (c)(3)(B)(i). , reenacted heading, introductory provisions, and subcl. (III) of cl. (i) without change and amended subcls. (I) and (II) generally. Prior to amendment, subcls. (I) and (II) read as follows:

“(I) a son or daughter of the taxpayer, or a descendant of either,

“(II) a stepson or stepdaughter of the taxpayer, or.”

Pub. L. 107–16, § 303(e)(2)(A)Subsec. (c)(3)(B)(iii). , reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “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.”

Pub. L. 107–16, § 303(h)Subsec. (c)(3)(E). , substituted “subparagraph (A)(ii)” for “subparagraphs (A)(ii) and (B)(iii)(II)”.

Pub. L. 107–16, § 303(d)(2)(A)Subsec. (c)(5). , struck out heading and text of par. (5), which defined “modified adjusted gross income” as meaning adjusted gross income without regard to certain described amounts and increased by certain described amounts.

Pub. L. 107–16, § 303(d)(2)(B)Subsec. (f)(2)(B). , struck out “modified” before “adjusted gross income” in two places.

Pub. L. 107–16, § 303(c)Subsec. (h). , struck out heading and text of subsec. (h). Text read as follows: “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.”

Pub. L. 107–16, § 303(a)(2)Subsec. (j)(1)(B). , amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “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.”

Pub. L. 107–16, § 303(a)(3)Subsec. (j)(2)(A). , substituted “subsection (b)(2)(A) (after being increased under subparagraph (B) thereof)” for “subsection (b)(2)”.

Pub. L. 107–16, § 201(c)(3)Subsec. (n). , struck out heading and text of subsec. (n), which had increased credit allowable under this section in the case of a taxpayer with respect to whom a child tax credit is allowed under section 24(a), described amount of increase, and set forth provisions relating to coordination with other credits allowable under this part.

Pub. L. 106–1701999—Subsec. (c)(3)(B)(iii). added subcl. (I) and redesignated former subcls. (I) and (II) as (II) and (III), respectively.

Pub. L. 105–206, § 6021(a)1998—Subsec. (c)(1)(F). , added introductory provisions and struck out former introductory provisions which read as follows: “The term ‘eligible individual’ does not include any individual who does not include on the return of tax for the taxable year—”.

Pub. L. 105–206, § 6021(b)(2)Subsec. (c)(1)(G). , added subpar. (G).

Pub. L. 105–206, § 6010(p)(2)Subsec. (c)(2)(B)(v). , inserted “shall be taken into account” before “, but only”.

Pub. L. 105–206, § 6021(b)(3)Subsec. (c)(3)(A)(ii) to (iv). , inserted “and” at end of cl. (ii), substituted a period for “, and” at end of cl. (iii), and struck out cl. (iv) which read as follows: “with respect to whom the taxpayer meets the identification requirements of subparagraph (D)”.

Pub. L. 105–206, § 6021(b)(1)Subsec. (c)(3)(D)(i). , reenacted heading without change and amended text of cl. (i) generally. Prior to amendment, text read as follows: “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.”

Pub. L. 105–206, § 6010(p)(1)(A)Subsec. (c)(5)(A). , inserted “and increased by the amounts described in subparagraph (C)” before period at end.

Pub. L. 105–206, § 6010(p)(1)(B)Subsec. (c)(5)(B). , (C), inserted “or” at end of cl. (iii) and substituted cl. (iv)(III) and concluding provisions for former cls. (iv)(III), (v), (vi), and concluding provisions which 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).”

Pub. L. 105–206, § 6010(p)(1)(C)Subsec. (c)(5)(C). , added subpar. (C).

Pub. L. 105–206, § 6003(b)Subsecs. (m), (n). , redesignated subsec. (m), relating to supplemental child credit, as (n) and amended text generally. Prior to amendment, text read as follows:

In general“(1) .—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).

Supplemental child credit“(2) .—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.

Coordination with section 24“(3) .—The amount of the credit under section 24 shall be reduced by the amount of the credit allowed under this subsection.”

Pub. L. 105–34, § 312(d)(2)Subsec. (c)(4). , struck out “(as defined in section 1034(h)(3)” after “serving on extended active duty” and inserted at end “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.”

Pub. L. 105–34, § 1085(d)(4)Subsec. (c)(5)(B). , inserted at end of concluding provisions “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).”

Pub. L. 105–34, § 1085(b)Subsec. (c)(5)(B)(iv). , substituted “75 percent” for “50 percent” in introductory provisions.

Pub. L. 105–34, § 1085(d)(1)Subsec. (c)(5)(B)(v), (vi). –(3), added cls. (v) and (vi).

Pub. L. 105–34, § 1085(a)(1)lSubsec. (k). , added subsec. (k). Former subsec. (k) redesignated ().

lPub. L. 105–34, § 1085(a)(1)llSubsec. (). , redesignated subsec. (k) as (). Former subsec. () redesignated (m).

Pub. L. 105–34, § 1085(a)(1)lSubsec. (m). , redesignated subsec. () as (m) relating to identification numbers.

Pub. L. 105–34, § 101(b), added subsec. (m) relating to supplemental child credit.

Pub. L. 104–193, § 910(a)1996—Subsec. (a)(2)(B). , inserted “modified” before “adjusted gross income”.

Pub. L. 104–193, § 909(a)(3)Subsec. (b)(2). , reenacted heading without change and amended text generally. Prior to amendment, text consisted of subpars. (A) and (B) setting out tables for determining the earned income amount for taxable years beginning after 1994 and for taxable years beginning in 1994.

Pub. L. 104–193, § 910(a)Subsec. (c)(1)(C). , inserted “modified” before “adjusted gross income”.

Pub. L. 104–193, § 451(a)Subsec. (c)(1)(F). , added subpar. (F).

Pub. L. 104–193, § 910(b)Subsec. (c)(5). , added par. (5).

Pub. L. 104–193, § 910(a)Subsec. (f)(2)(B). , inserted “modified” before “adjusted gross income” in two places.

Pub. L. 104–193, § 909(a)(1)Subsec. (i)(1). , substituted “$2,200” for “$2,350”.

Pub. L. 104–193, § 909(b)Subsec. (i)(2). , added subpars. (D) and (E) and concluding provisions.

Pub. L. 104–193, § 909(a)(2)Subsec. (j). , reenacted heading without change and amended text generally. Prior to amendment, text read as follows:

In general“(1) .—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’.

Rounding“(2) .—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).”

lPub. L. 104–193, § 451(b)lSubsec. (). , added subsec. ().

Pub. L. 104–71995—Subsecs. (i) to (k). added subsec. (i) and redesignated former subsecs. (i) and (j) as (j) and (k), respectively.

Pub. L. 103–465, § 722(a)1994—Subsec. (c)(1)(E). , added subpar. (E).

Pub. L. 103–465, § 723(a)Subsec. (c)(2)(B)(iv). , added cl. (iv).

Pub. L. 103–465, § 742(a)Subsec. (c)(3)(D)(i). , amended heading and text of cl. (i) generally. Prior to amendment, text read as follows: “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.”

Pub. L. 103–465, § 721(a)Subsec. (c)(4). , added par. (4).

Pub. L. 103–66, § 13131(a)1993—Subsec. (a). , amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “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.”

Pub. L. 103–66, § 13131(a)Subsec. (b). , substituted “Percentages and amounts” for “Computation of credit” in heading and amended text generally. Prior to amendment, text related to method of computation of both earned income credit and health insurance credit.

Pub. L. 103–66, § 13131(b)Subsec. (c)(1)(A). , amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘eligible individual’ means any individual who has a qualifying child for the taxable year.”

Pub. L. 103–66, § 13131(d)(1)Subsec. (c)(3)(D)(ii). , redesignated cl. (iii) as (ii), substituted “clause (i)” for “clause (i) or (ii)”, and struck out heading and text of former cl. (ii). Text read as follows: “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).”

Pub. L. 103–66, § 13131(c)(1)Subsec. (i)(1). , added par. (1) and struck out text and heading of former par. (1). Text read as follows: “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.”

Pub. L. 103–66, § 13131(c)Subsec. (i)(2), (3). , redesignated par. (3) as (2) and struck out former par. (2) which defined terms for purposes of the inflation adjustment in par. (1).

Pub. L. 101–508, § 11111(a)1990—Subsec. (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.”

Pub. L. 101–508, § 11111(a)Subsec. (b). , 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’.”

Pub. L. 101–508, § 11111(a)Subsec. (c). , amended subsec. (c) generally, inserting “and special rules” in heading and substituting present provisions for provisions defining “eligible individual” and “earned income”.

Pub. L. 101–508, § 11101(d)(1)(B)Subsec. (i)(1)(B). , substituted “1989” for “1987”.

Pub. L. 101–508, § 11111(e)(1)Subsec. (i)(2)(A). , (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).

Pub. L. 101–508, § 11111(e)(3)Subsec. (i)(2)(B). , 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).”

Pub. L. 101–508, § 11111(b)Subsec. (j). , added subsec. (j).

Pub. L. 100–647, § 1007(g)(12)1988—Subsec. (h). , struck out “for taxpayers other than corporations” after “alternative minimum tax”.

Pub. L. 100–647, § 1001(c)Subsec. (i)(3). , 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).”

Pub. L. 99–514, § 111(a)1986—Subsec. (a). , substituted “14 percent” for “11 percent” and “$5,714” for “$5,000”.

Pub. L. 99–514, § 111(b)Subsec. (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

²₉“(2) 12⁄ 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.”

Pub. L. 99–514, § 1301(j)(8)Subsec. (c)(1)(A)(i). , substituted “section 7703” for “section 143”.

Pub. L. 99–514, § 104(b)(1)(B), substituted “section 151(c)(3)” for “section 151(e)(3)”.

Pub. L. 99–514, § 1272(d)(4)Subsec. (c)(1)(C). , 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).”

Pub. L. 99–514, § 1301(j)(8)Subsec. (d). , substituted “section 7703” for “section 143”.

Pub. L. 99–514, § 111(d)(1)Subsec. (f)(2)(A), (B). , 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.”

Pub. L. 99–514, § 111(c)Subsec. (i). , added subsec. (i).

Pub. L. 98–369, § 471(c)section 43 of this title1984—, renumbered as this section.

Pub. L. 98–369, § 1042(a)Subsec. (a). , substituted “11 percent” for “10 percent”.

Pub. L. 98–369, § 1042(d)(1)Subsec. (b)(1). , substituted “$550” for “$500”.

Pub. L. 98–369, § 1042(b)²₉Subsec. (b)(2). , substituted “12⁄ percent” for “12.5 percent” and “$6,500” for “$6,000”.

Pub. L. 98–369, § 423(c)(3)(A)Subsec. (c)(1)(A)(i). , inserted “or would be so entitled but for paragraph (2) or (4) of section 152(e)”.

Pub. L. 98–369, § 423(c)(3)(B)Subsec. (c)(1)(B). , substituted “as the individual for more than one-half of the taxable year” for “as the individual”.

Pub. L. 98–369, § 1042(d)(2)Subsec. (f)(2)(A). , substituted “between $0 and $11,000” for “between $0 and $10,000”.

Pub. L. 98–369, § 1042(d)(2)Subsec. (f)(2)(B). , substituted “between $6,500 and $11,000” for “between $6,000 and $10,000”.

Pub. L. 98–369, § 1042(c)Subsec. (h). , added subsec. (h).

Pub. L. 98–211983—Subsec. (c)(2)(A)(ii). 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)”.

Pub. L. 97–341981—Subsec. (c)(1)(C). 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).

Pub. L. 96–222, § 101(a)(1)1980—Subsec. (c)(1)(C). , 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).

Pub. L. 96–222, § 101(a)(2)(E)Subsecs. (g), (h). , redesignated subsec. (h) as (g).

Pub. L. 95–600, § 104(a)1978—Subsec. (a). , substituted “subtitle” for “chapter” and “$5,000” for “$4,000”.

Pub. L. 95–600, § 104(b)Subsec. (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.

Pub. L. 95–600, § 104(e)Subsec. (c)(1). , 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.

Pub. L. 95–615, § 202(f)(5)Pub. L. 95–600Subsec. (c)(1)(C). , 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 which enacted provisions formerly contained in subsec. (c)(1)(B) in subsec. (c)(1)(C).

Pub. L. 95–600, § 104(d)Subsec. (c)(2)(B). , 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.

Pub. L. 95–600, § 104(c)Subsec. (f). , added subsec. (f).

Pub. L. 95–600, § 105(a)Subsec. (h). , added subsec. (h).

Pub. L. 94–455, § 401(c)(1)(B)1976—Subsec. (a). , substituted “is allowed” for “shall be allowed” and struck out provisions relating to the application of the six-month rule.

Pub. L. 94–455, § 401(c)(1)(B)Subsec. (b). , struck out provisions relating to the application of the six-month rule.

Pub. L. 94–455, § 401(c)(2)Subsec. (c)(1)(A). , 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. 94–1641975—Subsec. (a). designated existing provisions as par. (1) and added par. (2).

Pub. L. 94–164Subsec. (b). designated existing provisions as par. (1) and added par. (2).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 117–2, title IX, § 9621(c)Mar. 11, 2021135 Stat. 153

December 31, 2020“The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 117–2, title IX, § 9622(b)Mar. 11, 2021135 Stat. 153

December 31, 2020“The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 117–2, title IX, § 9623(c)Mar. 11, 2021135 Stat. 154

December 31, 2020“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 117–2, title IX, § 9624(c)Mar. 11, 2021135 Stat. 154

December 31, 2020“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2018 Amendment

section 101(a) of Pub. L. 115–141 Pub. L. 114–113 section 101(s) of Pub. L. 115–141 section 24 of this titleAmendment by effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of , to which such amendment relates, see , set out as a note under .

Effective Date of 2017 Amendment

Pub. L. 115–97Dec. 31, 2017section 11002(e) of Pub. L. 115–97 section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, § 103(d)Dec. 18, 2015129 Stat. 3045

December 31, 2015“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 114–113, div. Q, title II, § 204(b)Dec. 18, 2015129 Stat. 3081 Pub. L. 115–141, div. U, title I, § 101(h)Mar. 23, 2018132 Stat. 1162

Dec. 18, 2015“The amendment made by this section [amending this section] shall apply to 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 [].”

, , , as amended by , , , provided that:

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title II, § 206(d)Dec. 19, 2014128 Stat. 4027

section 2001 of this title Pub. L. 111–312“The amendments made by this section [amending this section and sections 1397B and 2801 of this title and provisions set out as a note under ] shall take effect as if included in the provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 [] to which they relate.”

, , , provided that:

section 221(a)(3) of Pub. L. 113–295Dec. 19, 2014section 221(b) of Pub. L. 113–295 section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .

Effective Date of 2013 Amendment

Pub. L. 112–240Dec. 31, 2012section 103(e)(1) of Pub. L. 112–240 section 24 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2010 Amendment

Pub. L. 111–312Dec. 31, 2010section 103(d) of Pub. L. 111–312 section 24 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective and Termination Dates of 2010 Amendment note under .

Pub. L. 111–226, title II, § 219(c)Aug. 10, 2010124 Stat. 2403

section 3507 of this titleDecember 31, 2010“The repeals and amendments made by this section [amending this section and sections 6012, 6051, and 6302 of this title and repealing ] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2009 Amendment

Pub. L. 111–5, div. B, title I, § 1002(b)Feb. 17, 2009123 Stat. 312

December 31, 2008“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2008 Amendment

Pub. L. 110–234 Pub. L. 110–246May 22, 2008Pub. L. 110–234 section 4 of Pub. L. 110–246 section 8701 of Title 7Amendment of this section and repeal of by effective , the date of enactment of , except as otherwise provided, see , set out as an Effective Date note under , Agriculture.

Pub. L. 110–246Oct. 1, 2008section 4407 of Pub. L. 110–246 section 1161 of Title 2Amendment by section 4002(b)(1)(B), (2)(O) of effective , see , set out as a note under , The Congress.

Pub. L. 110–245, title I, § 102(d)June 17, 2008122 Stat. 1625

section 6428 of this titleDecember 31, 2007“The amendments made by this section [amending this section and ] shall apply to taxable years ending after .”

, , , provided that:

Effective Date of 2006 Amendment

Pub. L. 109–432, div. A, title I, § 106(b)Dec. 20, 2006120 Stat. 2938

December 31, 2006“The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2005 Amendment

Pub. L. 109–135, title III, § 302(b)Dec. 21, 2005119 Stat. 2608

December 31, 2005“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2004 Amendment

Pub. L. 110–245, title I, § 102(c)June 17, 2008122 Stat. 1625

section 105 of Pub. L. 108–311 section 1 of this title Pub. L. 108–311“Section 105 of the Working Families Tax Relief Act of 2004 [, set out as a note under ] (relating to application of EGTRRA sunset to this title [probably means title I of , see Tables for classification]) shall not apply to section 104(b) of such Act [amending this section].”

, , , provided that:

Pub. L. 108–311, title I, § 104(c)(2)Oct. 4, 2004118 Stat. 1169

Oct. 4, 2004“The amendments made by subsection (b) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [].”

, , , provided that:

section 205 of Pub. L. 108–311Dec. 31, 2004section 208 of Pub. L. 108–311 section 2 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2002 Amendment

Pub. L. 107–147, title IV, § 416(a)(2)Mar. 9, 2002116 Stat. 55

Pub. L. 98–369“The amendment made by this subsection [amending this section] shall take effect as if included in section 474 of the Tax Reform Act of 1984 [].”

, , , provided that:

Effective Date of 2001 Amendment

section 201(c)(3) of Pub. L. 107–16Dec. 31, 2000section 201(e)(1) of Pub. L. 107–16 section 24 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Pub. L. 107–16, title III, § 303(i)June 7, 2001115 Stat. 57

“(1)

In general .—

section 6213 of this titleDecember 31, 2001Except as provided in paragraph (2), the amendments made by this section [amending this section and ] shall apply to taxable years beginning after .

“(2)

Subsection (g).—

section 6213 of this titleJanuary 1, 2004The amendment made by subsection (g) [amending ] shall take effect on .”

, , , provided that:

Effective Date of 1999 Amendment

Pub. L. 106–170, title IV, § 412(b)Dec. 17, 1999113 Stat. 1917

December 31, 1999“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–206, title VI, § 6021(c)July 22, 1998112 Stat. 824

“(1)

Eligible individuals .—

Pub. L. 104–193The amendment made by subsection (a) [amending this section] shall take effect as if included in the amendments made by section 451 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 [].

“(2)

Qualifying children .—

Pub. L. 101–508The amendments made by subsection (b) [amending this section] shall take effect as if included in the amendments made by section 11111 of Revenue Reconciliation Act of 1990 [].”

, , , provided that:

Pub. L. 105–206 Pub. L. 105–34 section 6024 of Pub. L. 105–206 section 1 of this titleAmendment by sections 6003(b) and 6010(p)(1), (2) of effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, , to which such amendment relates, see , set out as a note under .

Effective Date of 1997 Amendment

section 101(b) of Pub. L. 105–34Dec. 31, 1997section 101(e) of Pub. L. 105–34 section 24 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .

section 312(d)(2) of Pub. L. 105–34May 6, 1997section 312(d) of Pub. L. 105–34 section 121 of this titleAmendment by applicable to sales and exchanges after , with certain exceptions, see , set out as a note under .

Pub. L. 105–34, title X, § 1085(e)Aug. 5, 1997111 Stat. 957

“(1)

December 31, 1996 The amendments made by subsection (a) [amending this section and sections 6213 and 6695 of this title] shall apply to taxable years beginning after .

“(2)

December 31, 1997 The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 1996 Amendment

Pub. L. 104–193, title IV, § 451(d)Aug. 22, 1996110 Stat. 2277

section 6213 of this titleAug. 22, 1996“The amendments made by this section [amending this section and ] shall apply 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 [].”

, , , provided that:

Pub. L. 104–193, title IX, § 909(c)Aug. 22, 1996110 Stat. 2352

“(1)

In general .—

December 31, 1995Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to taxable years beginning after .

“(2)

Advance payment individuals .—

June 26, 1996December 31, 1996In the case of any individual who on or before , 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 .”

, , , provided that:

Pub. L. 104–193, title IX, § 910(c)Aug. 22, 1996110 Stat. 2353

“(1)

In general .—

December 31, 1995Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to taxable years beginning after .

“(2)

Advance payment individuals .—

, , , provided that:

Effective Date of 1995 Amendment

Pub. L. 104–7, § 4(b)Apr. 11, 1995109 Stat. 96

December 31, 1995“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 1994 Amendment

Pub. L. 103–465, title VII, § 721(d)(1)Dec. 8, 1994108 Stat. 5002

December 31, 1994“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 103–465, title VII, § 722(b)Dec. 8, 1994108 Stat. 5003

December 31, 1994“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 103–465, title VII, § 723(b)Dec. 8, 1994108 Stat. 5003

December 31, 1993“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 103–465, title VII, § 742(c)Dec. 8, 1994108 Stat. 5010

“(1)

In general .—

section 6109 of this titleDecember 31, 1994Except as provided in paragraph (2), the amendments made by this section [amending this section and ] shall apply to returns for taxable years beginning after .

“(2)

Exception .—

The amendments made by this section shall not apply to—

“(A)

October 31, 1995 returns for taxable years beginning in 1995 with respect to individuals who are born after , and

“(B)

November 30, 1996 returns for taxable years beginning in 1996 with respect to individuals who are born after .”

, , , provided that:

Effective Date of 1993 Amendment

Pub. L. 103–66, title XIII, § 13131(e)Aug. 10, 1993107 Stat. 435

December 31, 1993“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 .”

, , , provided that:

Effective Date of 1990 Amendment

section 11101(d)(1)(B) of Pub. L. 101–508Dec. 31, 1990section 11101(e) of Pub. L. 101–508 section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Pub. L. 101–508, title XI, § 11111(f)Nov. 5, 1990104 Stat. 1388–413

December 31, 1990“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 .”

, , , provided that:

Effective Date of 1988 Amendment

Pub. L. 100–647 Pub. L. 99–514 section 1019(a) of Pub. L. 100–647 section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–514Dec. 31, 1986section 151(a) of Pub. L. 99–514 section 1 of this titleAmendment by sections 104(b)(1)(B) and 111(a)–(d)(1) of applicable to taxable years beginning after , see , set out as a note under .

section 1272(d)(4) of Pub. L. 99–514Dec. 31, 1986section 1277 of Pub. L. 99–514 section 931 of this titleAmendment by applicable to taxable years beginning after , with certain exceptions and qualifications, see , set out as a note under .

section 1301(j)(8) of Pub. L. 99–514Aug. 15, 1986Pub. L. 99–514 section 141 of this titleAmendment by applicable to bonds issued after , except as otherwise provided, see sections 1311 to 1318 of , set out as an Effective Date; Transitional Rules note under .

Effective Date of 1984 Amendment

section 423(c)(3) of Pub. L. 98–369Dec. 31, 1984section 423(d) of Pub. L. 98–369 section 2 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Pub. L. 98–369, div. A, title X, § 1042(e)July 18, 198498 Stat. 1044

December 31, 1984“The amendments made by this section [amending sections 32 and 3507 of this title] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 1983 Amendment

Pub. L. 98–21Dec. 31, 1989section 124(d)(2) of Pub. L. 98–21 section 1401 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1981 Amendment

Pub. L. 97–34Dec. 31, 1981section 115 of Pub. L. 97–34 section 911 of this titleAmendment by applicable with respect to taxable years beginning after , see , set out as a note under .

Effective Date of 1980 Amendment

Pub. L. 96–222, title I, § 101(b)(1)(A)Apr. 1, 198094 Stat. 205

December 31, 1977“The amendment made by subsection (a)(1) [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 96–222, title II, § 201Apr. 1, 198094 Stat. 228

Pub. L. 95–600“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 [, see Tables for classification] to which such amendment relates.”

, , , provided that:

Effective Date of 1978 Amendment

Pub. L. 95–600, title I, § 104(f)Nov. 6, 197892 Stat. 2773

December 31, 1978“The amendments made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Pub. L. 95–600, title I, § 105(g)(1)Nov. 6, 197892 Stat. 2776

section 6012 of this titleDecember 31, 1978“The amendments made by subsections (a) and (d) [amending this section and ] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 1978 Amendment; Election of Prior Law

Pub. L. 95–615Dec. 31, 1977section 209 of Pub. L. 95–615 section 911 of this titleAmendment by applicable to taxable years beginning after , with provision for election of prior law, see , set out as a note under .

Effective and Termination Dates of 1976 Amendment

Pub. L. 94–455, title IV, § 401(e)Oct. 4, 197690 Stat. 1558 Pub. L. 95–30, title I, § 103(c)May 23, 197791 Stat. 139 Pub. L. 95–600, title I, § 103(b)Nov. 6, 197892 Stat. 2771

December 31, 1975December 31, 1978December 31, 1975December 31, 1975section 3402 of this titleSeptember 14, 1976“The amendments made by subsection (a) [amending sections 43 [now 32] and 6096 of this title] shall apply to taxable years ending after , and shall cease to apply to taxable years ending after . The amendments made by subsection (c) [amending this section] shall apply to taxable years ending after . The amendments made by subsection (b) [amending sections 141 and 6012 of this title] shall apply to taxable years ending after . The amendments made by subsection (d) [amending ] shall apply to wages paid after .”

, , , as amended by , , ; , , , provided that:

Effective and Termination Dates of 1975 Amendment

Pub. L. 94–164, § 2(g)Dec. 23, 197589 Stat. 972 Pub. L. 94–455, § 402(b)

December 31, 1975January 1, 1978December 31, 1975“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 , and before . Subsection (d) applies to taxable years ending after .”

, , , as amended by , provided that:

Pub. L. 94–12, title II, § 209(b)Mar. 29, 197589 Stat. 35 Pub. L. 94–164, § 2(f)Dec. 23, 197589 Stat. 972 Pub. L. 94–455, title IV, § 401(c)(1)(A)Oct. 4, 197690 Stat. 1557 Pub. L. 95–30, title I, § 103(b)May 23, 197791 Stat. 139 Pub. L. 95–600, title I, § 103(a)Nov. 6, 197892 Stat. 2771

December 31, 1974“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 .”

, , , as amended by , , ; , , ; , , ; , , , provided that:

Savings Provision

section 401(b)(4) of Pub. L. 115–141Mar. 23, 2018Mar. 23, 2018section 401(e) of Pub. L. 115–141 section 23 of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .

Information Return Matching

Pub. L. 117–2, title IX, § 9621(b)Mar. 11, 2021135 Stat. 153

“As soon as practicable, the Secretary of the Treasury (or the Secretary’s delegate) shall develop and implement procedures to use information returns under section 6050S (relating to returns relating to higher education tuition and related expenses) to check the status of individuals as specified students for purposes of section 32(n)(1)(B)(ii) of the Internal Revenue Code of 1986 (as added by this section).”

, , , provided that:

Temporary Special Rule for Determining Earned Income for Purposes of Earned Income Tax Credit

Pub. L. 117–2, title IX, § 9626Mar. 11, 2021135 Stat. 157

“(a)

In General .—

If the earned income of the taxpayer for the taxpayer’s first taxable year beginning in 2021 is less than the earned income of the taxpayer for the taxpayer’s first taxable year beginning in 2019, the credit allowed under section 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 taxpayer’s first taxable year beginning in 2019, for

“(2)

such earned income for the taxpayer’s first taxable year beginning in 2021.

“(b)

Earned Income.—

“(1)

In general .—

For purposes of this section, the term ‘earned income’ has the meaning given such term under section 32(c) of the Internal Revenue Code of 1986.

“(2)

Application to joint returns .—

For purposes of subsection (a), in the case of a joint return, the earned income of the taxpayer for the first taxable year beginning in 2019 shall be the sum of the earned income of each spouse for such taxable year.

“(c)

Special Rules.—

“(1)

Errors treated as mathematical errors .—

For purposes of section 6213 of the Internal Revenue Code of 1986, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error.

“(2)

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 subsection (a).

“(d)

Treatment of Certain Possessions.—

“(1)

Payments to possessions with mirror code tax systems .—

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 application of the provisions of this section (other than this subsection) with respect to section 32 of the Internal Revenue Code of 1986. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

“(2)

Payments to 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 provisions of this section (other than this subsection) with respect to section 32 of the Internal Revenue Code of 1986 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.

“(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 .—

section 1324 of title 31For purposes of , 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.”

, , , provided that:

Temporary Special Rule for Determination of Earned Income

Pub. L. 116–260, div. EE, title II, § 211Dec. 27, 2020134 Stat. 3066

“(a)

In General .—

If the earned income of the taxpayer for the taxpayer’s first taxable year beginning in 2020 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 taxpayer’s first taxable year beginning in 2020.

“(b)

Earned Income.—

“(1)

In general .—

For purposes of this section, the term ‘earned income’ has the meaning given such term under section 32(c) of the Internal Revenue Code of 1986.

“(2)

Application to joint returns .—

For purposes of subsection (a), in the case of a joint return, 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.

“(c)

Special Rules.—

“(1)

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 subsection (a) shall be treated as a mathematical or clerical error.

“(2)

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).”

, , , provided that:

Study on Earned Income Tax Credit Certification Program

Pub. L. 108–199, div. F, title II, § 206Jan. 23, 2004118 Stat. 319

“(a)

Study .—

The Internal Revenue Service shall conduct a study, as a part of any program that requires certification (including pre-certification) in order to claim the earned income tax credit under section 32 of the Internal Revenue Code of 1986, on the following matters:

“(1)

The costs (in time and money) incurred by the participants in the program.

“(2)

The administrative costs incurred by the Internal Revenue Service in operating the program.

“(3)

The percentage of individuals included in the program who were not certified for the credit, including the percentage of individuals who were not certified due to—

“(A)

ineligibility for the credit; and

“(B)

failure to complete the requirements for certification.

“(4)

The percentage of individuals to whom paragraph (3)(B) applies who were—

“(A)

otherwise eligible for the credit; and

“(B)

otherwise ineligible for the credit.

“(5)

The percentage of individuals to whom paragraph (3)(B) applies who—

“(A)

did not respond to the request for certification; and

“(B)

responded to such request but otherwise failed to complete the requirements for certification.

“(6)

The reasons—

“(A)

for which individuals described in paragraph (5)(A) did not respond to requests for certification; and

“(B)

for which individuals described in paragraph (5)(B) had difficulty in completing the requirements for certification.

“(7)

The characteristics of those individuals who were denied the credit due to—

“(A)

failure to complete the requirements for certification; and

“(B)

ineligibility for the credit.

“(8)

The impact of the program on non-English speaking participants.

“(9)

The impact of the program on homeless and other highly transient individuals.

“(b)

Report.—

“(1)

Preliminary report .—

July 30, 2004Not later than , the Commissioner of the Internal Revenue Service shall submit to Congress a preliminary report on the study conducted under subsection (a).

“(2)

Final report .—

June 30, 2005Not later than , the Commissioner of the Internal Revenue Service shall submit to Congress a final report detailing the findings of the study conducted under subsection (a).”

, , , provided that:

Program To Increase Public Awareness

section 11114 of Pub. L. 101–508 section 21 of this titleSecretary 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 , set out as a note under .

Employee Notification

Pub. L. 99–514, title I, § 111(e)Oct. 22, 1986100 Stat. 2108

“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.”

, , , provided that:

Disregard of Refund for Determination of Eligibility for Federal Benefits or Assistance

Pub. L. 94–164, § 2(d)Dec. 23, 197589 Stat. 972 Pub. L. 94–455, title IV, § 402(a)Oct. 4, 197690 Stat. 1558 Pub. L. 95–600, title I, § 105(f)Nov. 6, 197892 Stat. 2776 Pub. L. 99–514, § 2Oct. 22, 1986100 Stat. 2095

“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 [former] 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.”

, , , as amended by , , ; , , ; , , , provided that:

Pub. L. 95–600, title I, § 105(g)(3)Nov. 6, 197892 Stat. 2776

section 2(d) of Pub. L. 94–164Nov. 6, 1978“Subsection (f) [amending , set out above] shall take effect on the date of enactment of this Act [].”

[, , , provided that: ]

Allowance of credit

In general

Limitation

Percentages and amounts

Percentages

Amounts

In general

Joint returns

Definitions and special rules

Eligible individual

In general

Qualifying child ineligible

Exception for individual claiming benefits under section 911

Limitation on eligibility of nonresident aliens

Identification number requirement

Earned income

Qualifying child

In general

Married individual

Place of abode

Identification requirements

In general

Other methods

Treatment of military personnel stationed outside the United States

Married individuals

In general

Determination of marital status

In general

Special rule for separated spouse

Taxable year must be full taxable year

Amount of credit to be determined under tables

In general

Requirements for tables

Pub. L. 111–226, title II, § 219(a)(2)Aug. 10, 2010124 Stat. 2403 Repealed. , , ]

Pub. L. 107–16, title III, § 303(c)June 7, 2001115 Stat. 55 Repealed. , , ]

Denial of credit for individuals having excessive investment income

In general

Disqualified income

Inflation adjustments

In general

Rounding

In general

Disqualified income threshold amount

Restrictions on taxpayers who improperly claimed credit in prior year

Taxpayers making prior fraudulent or reckless claims

In general

Disallowance period

Taxpayers making improper prior claims

Coordination with certain means-tested programs

Identification numbers

Special rules for individuals without qualifying children

Decrease in minimum age for credit

In general

Applicable minimum age

Specified student

Qualified former foster youth

Qualified homeless youth

Elimination of maximum age for credit

Increase in credit and phaseout percentages

Increase in earned income and phaseout amounts

In general

Coordination with inflation adjustment

Inflation Adjusted Items for Certain Years

Editorial Notes

References in Text

Codification

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Effective Date of 2018 Amendment

Effective Date of 2017 Amendment

Effective Date of 2015 Amendment

Effective Date of 2014 Amendment

Effective Date of 2013 Amendment

Effective Date of 2010 Amendment

Effective Date of 2009 Amendment

Effective Date of 2008 Amendment

Effective Date of 2006 Amendment

Effective Date of 2005 Amendment

Pub. L. 111–226, title II, § 219(a)(2)Aug. 10, 2010124 Stat. 2403 Repealed. , , ]

Pub. L. 107–16, title III, § 303(c)June 7, 2001115 Stat. 55 Repealed. , , ]