Internal Revenue Code:Sec. 32. Earned income
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart C - Refundable Credits
Statute
Sec. 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
The credit percentage and the phaseout percentage shall be
determined as follows:
(A) In general
In the case of taxable years beginning after 1995:
---------------------------------------------------------------------
In the case of an The credit percentage The phaseout
eligible individual is: percentage is:
with:
---------------------------------------------------------------------
1 qualifying child 34 15.98
2 or more qualifying 40 21.06
children
No qualifying 7.65 7.65
children
-------------------------------
(B) Transitional percentages for 1995
In the case of taxable years beginning in 1995:
---------------------------------------------------------------------
In the case of an The credit percentage The phaseout
eligible individual is: percentage is:
with:
---------------------------------------------------------------------
1 qualifying child 34 15.98
2 or more qualifying 36 20.22
children
No qualifying 7.65 7.65
children
-------------------------------
(C) Transitional percentages for 1994
In the case of a taxable year beginning in 1994:
---------------------------------------------------------------------
In the case of an The credit percentage The phaseout
eligible individual is: percentage is:
with:
---------------------------------------------------------------------
1 qualifying child 26.3 15.98
2 or more qualifying 30 17.68
children
No qualifying 7.65 7.65
children
-------------------------------
(2) Amounts
(A) In general
Subject to subparagraph (B), the earned income amount and the
phaseout amount shall be determined as follows:
---------------------------------------------------------------------
In the case of an The earned income The phaseout amount
eligible individual amount is: is:
with:
---------------------------------------------------------------------
1 qualifying child $6,330 $11,610
2 or more qualifying $8,890 $11,610
children
No qualifying $4,220 $5,280
children
-------------------------------
(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 -
(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.
(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.
For purposes of the preceding sentence, marital status shall
be determined under section 7703.
(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 (within the meaning of
section 7703), the taxpayer identification number of such
individual's spouse.
(F) Individuals who do not include TIN, etc., of any qualifying
child
No credit shall be allowed under this section to any eligible
individual who has one or more qualifying children if no
qualifying child of such individual is taken into account under
subsection (b) by reason of paragraph (3)(D).
(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) in the case of any taxable year ending--
(I) after the date of the enactment of this clause
[PL 108-311 enacted effective October 4, 2004], and
(II) before January 1, 2008,
a taxpayer may elect to treat amounts excluded from
gross income by reason of section 112 as earned income.
(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
In the case of an individual who is married (within the meaning
of section 7703), this section shall apply only if a joint return
is filed for the taxable year under section 6013.
(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) Coordination with advance payments of earned income credit
(1) Recapture of excess advance payments
If any payment is made to the individual by an employer under
section 3507 during any calendar year, then the tax imposed by
this chapter for the individual's last taxable year beginning in
such calendar year shall be increased by the aggregate amount of
such payments.
(2) Reconciliation of payments advanced and credit allowed
Any increase in tax under paragraph (1) shall not be treated as
tax imposed by this chapter for purposes of determining the
amount of any credit (other than the credit allowed by subsection
(a)) allowable under this part.
((h) Repealed. Pub. L. 107-16, title III, Sec. 303(c), June 7,
2001, 115 Stat. 55)
(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 $2,200.
(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 1996, 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 -
(i) in the case of amounts in subsections (b)(2)(A) and
(i)(1), by substituting ''calendar year 1995'' for ''calendar
year 1992'' in subparagraph (B) thereof, and
(ii) in the case of the $3,000 amount in subsection
(b)(2)(B)(iii), by substituting ''calendar year 2007'' for
''calendar year 1992'' in subparagraph (B) of such section 1.
(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 Stamp Act of 1977,
any refund made to an individual (or the spouse of an individual)
by reason of this section, and any payment made to such individual
(or such spouse) by an employer under section 3507, 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).
Sources
(Added Pub. L. 94-12, title II, Sec. 204(a), Mar. 29, 1975, 89
Stat. 30, Sec. 43; amended Pub. L. 94-164, Sec. 2(c), Dec. 23,
1975, 89 Stat. 971; Pub. L. 94-455, title IV, Sec. 401(c)(1)(B),
(2), Oct. 4, 1976, 90 Stat. 1557; Pub. L. 95-600, title I, Sec.
104(a)-(e), 105(a), Nov. 6, 1978, 92 Stat. 2772, 2773; Pub. L.
95-615, Sec. 202(g)(5), formerly Sec. 202(f)(5), Nov. 8, 1978, 92
Stat. 3100, renumbered Sec. 202(g)(5) and amended Pub. L. 96-222,
title I, Sec. 101(a)(1), (2)(E), 108(a)(1)(A), Apr. 1, 1980, 94
Stat. 194, 195, 223; Pub. L. 97-34, title I, Sec. 111(b)(2),
112(b)(3), Aug. 13, 1981, 95 Stat. 194, 195; Pub. L. 98-21, title
I, Sec. 124(c)(4)(B), Apr. 20, 1983, 97 Stat. 91; renumbered Sec.
32 and amended Pub. L. 98-369, div. A, title IV, Sec. 423(c)(3),
471(c), title X, Sec. 1042(a)-(d)(2), July 18, 1984, 98 Stat. 801,
826, 1043; Pub. L. 99-514, title I, Sec. 104(b)(1)(B),
111(a)-(d)(1), title XII, Sec. 1272(d)(4), title XIII, Sec.
1301(j)(8), Oct. 22, 1986, 100 Stat. 2104, 2107, 2594, 2658; Pub.
L. 100-647, title I, Sec. 1001(c), 1007(g)(12), Nov. 10, 1988, 102
Stat. 3350, 3436; Pub. L. 101-508, title XI, Sec. 11101(d)(1)(B),
11111(a), (b), (e), Nov. 5, 1990, 104 Stat. 1388-405, 1388-408,
1388-412, 1388-413; Pub. L. 103-66, title XIII, Sec.
13131(a)-(d)(1), Aug. 10, 1993, 107 Stat. 433-435; Pub. L. 103-465,
title VII, Sec. 721(a), 722(a), 723(a), 742(a), Dec. 8, 1994, 108
Stat. 5002, 5003, 5010; Pub. L. 104-7, Sec. 4(a), Apr. 11, 1995,
109 Stat. 95; Pub. L. 104-193, title IV, Sec. 451(a), (b), title
IX, Sec. 909(a), (b), 910(a), (b), Aug. 22, 1996, 110 Stat. 2276,
2277, 2351, 2352; Pub. L. 105-34, title I, Sec. 101(b), title III,
Sec. 312(d)(2), title X, Sec. 1085(a)(1), (b)-(d), Aug. 5, 1997,
111 Stat. 798, 840, 955, 956; Pub. L. 105-206, title VI, Sec.
6003(b), 6010(p)(1), (2), 6021(a), (b), July 22, 1998, 112 Stat.
791, 816, 817, 823, 824; Pub. L. 106-170, title IV, Sec. 412(a),
Dec. 17, 1999, 113 Stat. 1917; Pub. L. 107-16, title II, Sec.
201(c)(3), title III, Sec. 303(a)-(f), (h), June 7, 2001, 115 Stat.
47, 55-57.)
Amendment of Section
EARNED INCOME TAX CREDIT ADJUSTMENT FOR TAX YEARS BEGINNING IN 2002
For adjustment of earned income tax credit under this section
for tax years beginning in 2002, see section 3.05 of Revenue
Procedure 2001-59, set out as a note under section 1 of this
title.
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
References in Text
REFERENCES IN TEXT
The Social Security Act, referred to in subsecs. (c)(2)(B)(v) and
(m), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part
A of title IV of the Act is classified generally to part A (Sec.
601 et seq.) 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 section 1305 of Title 42 and Tables.
The United States Housing Act of 1937, referred to in subsec.
(l)(1), is act Sept. 1, 1937, ch. 896, as revised generally by Pub.
L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653,
which is classified generally to chapter 8 (Sec. 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
section 1437 of Title 42 and Tables.
The Housing Act of 1949, referred to in subsec. (l)(2), is act
July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the
Act is classified generally to subchapter III (Sec. 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 section 1441 of
Title 42 and Tables.
Section 101 of the Housing and Urban Development Act of 1965,
referred to in subsec. (l)(3), is section 101 of Pub. L. 89-117,
title I, Aug. 10, 1965, 79 Stat. 451, which enacted section 1701s
of Title 12, Banks and Banking, and amended sections 1451 and 1465
of Title 42.
Sections 221(d)(3), 235, and 236 of the National Housing Act,
referred to in subsec. (l)(4), are classified to sections
1715l(d)(3), 1715z, and 1715z-1, respectively, of Title 12.
The Food Stamp Act of 1977, referred to in subsec. (l)(5), is
Pub. L. 88-525, Aug. 31, 1964, 78 Stat. 703, as amended, which is
classified generally to chapter 51 (Sec. 2011 et seq.) of Title 7,
Agriculture. For complete classification of this Act to the Code,
see Short Title note set out under section 2011 of Title 7 and
Tables.
Miscellaneous
PRIOR PROVISIONS
A prior section 32 was renumbered section 33 of this title.
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES
OF EARNED INCOME CREDIT.
(a) In General.--Section 32(c)(2)(B)(vi)(II) <<NOTE: 26 USC 32.>> is
amended by striking ``2007'' and inserting ``2008''.
2005 - Pub. L. 109-135:
The <<NOTE: 26 USC 32 note.>> amendment made by
subsection (a) shall apply to taxable years beginning after December 31,
2005.
2005 - Pub. L. 109-73
SEC. 406. SPECIAL RULE FOR DETERMINING EARNED INCOME.
(a) In General.--In the case of a qualified individual, if the
earned income of the taxpayer for the taxable year which includes August
25, 2005, is less than the earned income of the taxpayer for the
preceding taxable year, the credits allowed under sections 24(d) and 32
of the Internal Revenue Code of 1986 may, at the election of the
taxpayer, be determined by substituting--
(1) such earned income for the preceding taxable year, for
(2) such earned income for the taxable year which includes
August 25, 2005.
(b) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means any individual whose principal place of
abode on August 25, 2005, was located--
(1) in the core disaster area, or
(2) in the Hurricane Katrina disaster area (but outside the
core disaster area) and such individual was displaced from such
principal place of abode by reason of Hurricane Katrina.
(c) Earned Income.--For purposes of this section, the term ``earned
income'' has the meaning given such term under section 32(c) of such
Code.
(d) Special Rules.--
(1) Application to joint returns.--For purposes of
subsection (a), in the case of a joint return for a taxable year
which includes August 25, 2005--
(A) such subsection shall apply if either spouse is
a qualified individual, and
(B) the earned income of the taxpayer for the
preceding taxable year shall be the sum of the earned
income of each spouse for such preceding taxable year.
(2) Uniform application of election.--Any election made
under subsection (a) shall apply with respect to both section
24(d) and section 32 of such Code.
(3) Errors treated as mathematical error.--For purposes of
section 6213 of such Code, an incorrect use on a return of
earned income pursuant to subsection (a) shall be treated as a
mathematical or clerical error.
(4) No effect on <<NOTE: Applicability.>> 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).
2004 - Pub. L. 108-311 Sec 205, amended Sec. (c)(3) for
definiion of Qualifying Child.
2004 - Pub. L. 108-311 Sec 104(b), amended Sec. (c)(2)(B)
and the amendments shall apply to taxable years ending after
the date of the enactment of this act [Act approved October 4, 2004].
2002 - Subsec. 416(a), Pub. L. 107-147, amended Sec. 32(g)(2)
by substituting "part" for "subpart". Amendment effect as if
included in section 474 of the Tax Reform Act of 1984.
2001 - Subsec. (a)(2)(B). Pub. L. 107-16, Sec. 303(d)(1), 901,
temporarily struck out ''modified'' before ''adjusted gross
income''. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (b)(2). Pub. L. 107-16, Sec. 303(a)(1), 901, temporarily
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). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(1)(C). Pub. L. 107-16, Sec. 303(f), 901, temporarily
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.'' See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (c)(2)(A)(i). Pub. L. 107-16, Sec. 303(b), 901,
temporarily inserted '', but only if such amounts are includible in
gross income for the taxable year'' after ''other employee
compensation''. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(3)(A)(ii). Pub. L. 107-16, Sec. 303(e)(2)(B), 901,
temporarily struck out ''except as provided in subparagraph
(B)(iii),'' before ''who has''. See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (c)(3)(B)(i). Pub. L. 107-16, Sec. 303(e)(1), 901,
temporarily 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.''
See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (c)(3)(B)(iii). Pub. L. 107-16, Sec. 303(e)(2)(A), 901,
temporarily 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.''
See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (c)(3)(E). Pub. L. 107-16, Sec. 303(h), 901, temporarily
substituted ''subparagraph (A)(ii)'' for ''subparagraphs (A)(ii)
and (B)(iii)(II)''. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(5). Pub. L. 107-16, Sec. 303(d)(2)(A), 901,
temporarily 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. See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (f)(2)(B). Pub. L. 107-16, Sec. 303(d)(2)(B), 901,
temporarily struck out ''modified'' before ''adjusted gross
income'' in two places. See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (h). Pub. L. 107-16, Sec. 303(c), 901, temporarily 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.'' See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (j)(1)(B). Pub. L. 107-16, Sec. 303(a)(2), 901,
temporarily 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.'' See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (j)(2)(A). Pub. L. 107-16, Sec. 303(a)(3), 901,
temporarily substituted ''subsection (b)(2)(A) (after being
increased under subparagraph (B) thereof)'' for ''subsection
(b)(2)''. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (n). Pub. L. 107-16, Sec. 201(c)(3), 901, temporarily
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. See
Effective and Termination Dates of 2001 Amendment note below.
I211999 - Subsec. (c)(3)(B)(iii). Pub. L. 106-170 added subcl. (I)
and redesignated former subcls. (I) and (II) as (II) and (III),
respectively.
1998 - Subsec. (c)(1)(F). Pub. L. 105-206, Sec. 6021(a), 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 - ''.
Subsec. (c)(1)(G). Pub. L. 105-206, Sec. 6021(b)(2), added
subpar. (G).
Subsec. (c)(2)(B)(v). Pub. L. 105-206, Sec. 6010(p)(2), inserted
''shall be taken into account'' before '', but only''.
Subsec. (c)(3)(A)(ii) to (iv). Pub. L. 105-206, Sec. 6021(b)(3),
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)''.
Subsec. (c)(3)(D)(i). Pub. L. 105-206, Sec. 6021(b)(1), 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.''
Subsec. (c)(5)(A). Pub. L. 105-206, Sec. 6010(p)(1)(A), inserted
''and increased by the amounts described in subparagraph (C)''
before period at end.
Subsec. (c)(5)(B). Pub. L. 105-206, Sec. 6010(p)(1)(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).''
Subsec. (c)(5)(C). Pub. L. 105-206, Sec. 6010(p)(1)(C), added
subpar. (C).
Subsecs. (m), (n). Pub. L. 105-206, Sec. 6003(b), redesignated
subsec. (m), relating to supplemental child credit, as (n) and
amended text generally. Prior to amendment, text read as follows:
''(1) In general. - In the case of a taxpayer with respect to
whom a credit is allowed under section 24 for the taxable year,
there shall be allowed as a credit under this section an amount
equal to the supplemental child credit (if any) determined for such
taxpayer for such taxable year under paragraph (2). Such credit
shall be in addition to the credit allowed under subsection (a).
''(2) Supplemental child credit. - For purposes of this
subsection, the supplemental child credit is an amount equal to the
excess (if any) of -
''(A) the amount determined under section 24(d)(1)(A), over
''(B) the amount determined under section 24(d)(1)(B).
The amounts referred to in subparagraphs (A) and (B) shall be
determined as if section 24(d) applied to all taxpayers.
''(3) Coordination with section 24. - The amount of the credit
under section 24 shall be reduced by the amount of the credit
allowed under this subsection.''
1997 - Subsec. (c)(2)(B)(v). Pub. L. 105-34, Sec. 1085(c), added
cl. (v).
Subsec. (c)(4). Pub. L. 105-34, Sec. 312(d)(2), 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.''
Subsec. (c)(5)(B). Pub. L. 105-34, Sec. 1085(d)(4), 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).''
Subsec. (c)(5)(B)(iv). Pub. L. 105-34, Sec. 1085(b), substituted
''75 percent'' for ''50 percent'' in introductory provisions.
Subsec. (c)(5)(B)(v), (vi). Pub. L. 105-34, Sec. 1085(d)(1)-(3),
added cls. (v) and (vi).
Subsec. (k). Pub. L. 105-34, Sec. 1085(a)(1), added subsec. (k).
Former subsec. (k) redesignated (l).
Subsec. (l). Pub. L. 105-34, Sec. 1085(a)(1), redesignated
subsec. (k) as (l). Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 105-34, Sec. 1085(a)(1), redesignated
subsec. (l) as (m) relating to identification numbers.
Pub. L. 105-34, Sec. 101(b), added subsec. (m) relating to
supplemental child credit.
1996 - Subsec. (a)(2)(B). Pub. L. 104-193, Sec. 910(a), inserted
''modified'' before ''adjusted gross income''.
Subsec. (b)(2). Pub. L. 104-193, Sec. 909(a)(3), 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.
Subsec. (c)(1)(C). Pub. L. 104-193, Sec. 910(a), inserted
''modified'' before ''adjusted gross income''.
Subsec. (c)(1)(F). Pub. L. 104-193, Sec. 451(a), added subpar.
(F).
Subsec. (c)(5). Pub. L. 104-193, Sec. 910(b), added par. (5).
Subsec. (f)(2)(B). Pub. L. 104-193, Sec. 910(a), inserted
''modified'' before ''adjusted gross income'' in two places.
Subsec. (i)(1). Pub. L. 104-193, Sec. 909(a)(1), substituted
''$2,200'' for ''$2,350''.
Subsec. (i)(2). Pub. L. 104-193, Sec. 909(b), added subpars. (D)
and (E) and concluding provisions.
Subsec. (j). Pub. L. 104-193, Sec. 909(a)(2), reenacted heading
without change and amended text generally. Prior to amendment,
text read as follows:
''(1) In general. - In the case of any taxable year beginning
after 1994, each dollar amount contained in subsection (b)(2)(A)
shall be increased by an amount equal to -
''(A) such dollar amount, multiplied by
''(B) the cost-of-living adjustment determined under section
1(f)(3), for the calendar year in which the taxable year begins,
by substituting 'calendar year 1993' for 'calendar year 1992'.
''(2) Rounding. - If any dollar amount after being increased
under paragraph (1) is not a multiple of $10, such dollar amount
shall be rounded to the nearest multiple of $10 (or, if such dollar
amount is a multiple of $5, such dollar amount shall be increased
to the next higher multiple of $10).''
Subsec. (l). Pub. L. 104-193, Sec. 451(b), added subsec. (l).
1995 - Subsecs. (i) to (k). Pub. L. 104-7 added subsec. (i) and
redesignated former subsecs. (i) and (j) as (j) and (k),
respectively.
1994 - Subsec. (c)(1)(E). Pub. L. 103-465, Sec. 722(a), added
subpar. (E).
Subsec. (c)(2)(B)(iv). Pub. L. 103-465, Sec. 723(a), added cl.
(iv).
Subsec. (c)(3)(D)(i). Pub. L. 103-465, Sec. 742(a), 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.''
Subsec. (c)(4). Pub. L. 103-465, Sec. 721(a), added par. (4).
1993 - Subsec. (a). Pub. L. 103-66, Sec. 13131(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.''
Subsec. (b). Pub. L. 103-66, Sec. 13131(a), 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.
Subsec. (c)(1)(A). Pub. L. 103-66, Sec. 13131(b), 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.''
Subsec. (c)(3)(D)(ii). Pub. L. 103-66, Sec. 13131(d)(1),
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).''
Subsec. (i)(1). Pub. L. 103-66, Sec. 13131(c)(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.''
Subsec. (i)(2), (3). Pub. L. 103-66, Sec. 13131(c), redesignated
par. (3) as (2) and struck out former par. (2) which defined terms
for purposes of the inflation adjustment in par. (1).
1990 - Subsec. (a). Pub. L. 101-508, Sec. 11111(a), amended
subsec. (a) generally. Prior to amendment, subsec. (a) read as
follows: ''In the case of an eligible individual, there is allowed
as a credit against the tax imposed by this subtitle for the
taxable year an amount equal to 14 percent of so much of the earned
income for the taxable year as does not exceed $5,714.''
Subsec. (b). Pub. L. 101-508, Sec. 11111(a), substituted heading
for one which read ''Limitation'' and amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ''The
amount of the credit allowable to a taxpayer under subsection (a)
for any taxable year shall not exceed the excess (if any) of -
''(1) the maximum credit allowable under subsection (a) to any
taxpayer, over
''(2) 10 percent of so much of the adjusted gross income (or,
if greater, the earned income) of the taxpayer for the taxable
year as exceeds $9,000.
In the case of any taxable year beginning in 1987, paragraph (2)
shall be applied by substituting '$6,500' for '$9,000'.''
Subsec. (c). Pub. L. 101-508, Sec. 11111(a), amended subsec. (c)
generally, inserting ''and special rules'' in heading and
substituting present provisions for provisions defining ''eligible
individual'' and ''earned income''.
Subsec. (i)(1)(B). Pub. L. 101-508, Sec. 11101(d)(1)(B),
substituted ''1989'' for ''1987''.
Subsec. (i)(2)(A). Pub. L. 101-508, Sec. 11111(e)(1), (2),
substituted ''clause (i) of subparagraph (B)'' for ''clause (i) or
(ii) of subparagraph (B)'' in cl. (i) and ''clause (ii)'' for
''clause (iii)'' in cl. (ii).
Subsec. (i)(2)(B). Pub. L. 101-508, Sec. 11111(e)(3), amended
subpar. (B) generally. Prior to amendment, subpar. (B) read as
follows: ''The dollar amounts referred to in this subparagraph are
-
''(i) the $5,714 amount contained in subsection (a),
''(ii) the $6,500 amount contained in the last sentence of
subsection (b), and
''(iii) the $9,000 amount contained in subsection (b)(2).''
Subsec. (j). Pub. L. 101-508, Sec. 11111(b), added subsec. (j).
1988 - Subsec. (h). Pub. L. 100-647, Sec. 1007(g)(12), struck out
''for taxpayers other than corporations'' after ''alternative
minimum tax''.
Subsec. (i)(3). Pub. L. 100-647, Sec. 1001(c), amended par. (3)
generally. Prior to amendment, par. (3) read as follows: ''If any
increase determined under paragraph (1) is not a multiple of $10,
such increase shall be rounded to the nearest multiple of $10 (or,
if such increase is a multiple of $5, such increase shall be
increased to the next higher multiple of $10).''
1986 - Subsec. (a). Pub. L. 99-514, Sec. 111(a), substituted ''14
percent'' for ''11 percent'' and ''$5,714'' for ''$5,000''.
Subsec. (b). Pub. L. 99-514, Sec. 111(b), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ''The
amount of the credit allowable to a taxpayer under subsection (a)
for any taxable year shall not exceed the excess (if any) of -
''(1) $550, over
''(2) 12 2/9 percent of so much of the adjusted gross income
(or, if greater, the earned income) of the taxpayer for the
taxable year as exceeds $6,500.''
Subsec. (c)(1)(A)(i). Pub. L. 99-514, Sec. 1301(j)(8),
substituted ''section 7703'' for ''section 143''.
Pub. L. 99-514, Sec. 104(b)(1)(B), substituted ''section
151(c)(3)'' for ''section 151(e)(3)''.
Subsec. (c)(1)(C). Pub. L. 99-514, Sec. 1272(d)(4), struck out
''or 931'' after ''911'' in heading, and amended text generally.
Prior to amendment, text read as follows: ''The term 'eligible
individual' does not include an individual who, for the taxable
year, claims the benefits of -
''(i) section 911 (relating to citizens or residents of the
United States living abroad),
''(ii) section 931 (relating to income from sources within
possessions of the United States).''
Subsec. (d). Pub. L. 99-514, Sec. 1301(j)(8), substituted
''section 7703'' for ''section 143''.
Subsec. (f)(2)(A), (B). Pub. L. 99-514, Sec. 111(d)(1), added
subpars. (A) and (B) and struck out former subpars. (A) and (B)
which read as follows:
''(A) for earned income between $0 and $11,000, and
''(B) for adjusted gross income between $6,500 and $11,000.''
Subsec. (i). Pub. L. 99-514, Sec. 111(c), added subsec. (i).
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 43 of this
title as this section.
Subsec. (a). Pub. L. 98-369, Sec. 1042(a), substituted ''11
percent'' for ''10 percent''.
Subsec. (b)(1). Pub. L. 98-369, Sec. 1042(d)(1), substituted
''$550'' for ''$500''.
Subsec. (b)(2). Pub. L. 98-369, Sec. 1042(b), substituted ''12
2/9 percent'' for ''12.5 percent'' and ''$6,500'' for ''$6,000''.
Subsec. (c)(1)(A)(i). Pub. L. 98-369, Sec. 423(c)(3)(A), inserted
''or would be so entitled but for paragraph (2) or (4) of section
152(e)''.
Subsec. (c)(1)(B). Pub. L. 98-369, Sec. 423(c)(3)(B), substituted
''as the individual for more than one-half of the taxable year''
for ''as the individual''.
Subsec. (f)(2)(A). Pub. L. 98-369, Sec. 1042(d)(2), substituted
''between $0 and $11,000'' for ''between $0 and $10,000''.
Subsec. (f)(2)(B). Pub. L. 98-369, Sec. 1042(d)(2), substituted
''between $6,500 and $11,000'' for ''between $6,000 and $10,000''.
Subsec. (h). Pub. L. 98-369, Sec. 1042(c), added subsec. (h).
1983 - Subsec. (c)(2)(A)(ii). Pub. L. 98-21 inserted before
period at end '', but such net earnings shall be determined with
regard to the deduction allowed to the taxpayer by section
164(f)''.
1981 - Subsec. (c)(1)(C). Pub. L. 97-34 struck out reference to
section 913 in heading, substituted ''relating to citizens or
residents of the United States living abroad'' for ''relating to
income earned by individuals in certain camps outside the United
States'' in cl. (i), struck out cl. (ii) which made reference to
section 913, and redesignated cl. (iii) as (ii).
1980 - Subsec. (c)(1)(C). Pub. L. 96-222, Sec. 101(a)(1), in
heading substituted ''who claims benefit of section 911, 913, or
931'' for ''entitled to exclude income under section 911'' and in
text substituted ''claims the benefits of'' for ''is entitled to
exclude any amounts from gross income under'' and inserted
reference to section 913 (relating to deduction for certain
expenses of living abroad).
Subsecs. (g), (h). Pub. L. 96-222, Sec. 101(a)(2)(E),
redesignated subsec. (h) as (g).
1978 - Subsec. (a). Pub. L. 95-600, Sec. 104(a), substituted
''subtitle'' for ''chapter'' and ''$5,000'' for ''$4,000''.
Subsec. (b). Pub. L. 95-600, Sec. 104(b), substituted provision
limiting the allowable credit to an amount not to exceed the excess
of $500 over 12.5 percent of so much of the adjusted gross income
for the taxable year as exceeds $6,000 for provision limiting the
allowable credit to an amount reduced by 10 percent of so much of
the adjusted gross income for the taxable year as exceeds $4,000.
Subsec. (c)(1). Pub. L. 95-600, Sec. 104(e), amended par. (1)
generally, substituting in definition of eligible individual one
who is married and is entitled to a deduction under section 151 for
a child, provided the child has the same principal abode as the
individual and the abode is in the United States, is a surviving
spouse, or is a head of household, provided the household is in the
United States for one who maintains a household in the United
States which is the principal abode of that individual and a child
of that individual who meets the requirements of section
151(e)(1)(B) or a child of that individual who is disabled within
the meaning of section 72(m)(7) and to whom the individual is
entitled to claim a deduction under section 151.
Subsec. (c)(1)(C). Pub. L. 95-615, Sec. 202(f)(5), which directed
the amendment of subsec. (c)(1)(B) by substituting ''(relating to
income earned by employees in certain camps)'' for ''(relating to
earned income from sources without the United States)'', was
executed to subsec. (c)(1)(C) to reflect the probable intent of
Congress and the general amendment of subsec. (c)(1) by Pub. L.
95-600 which enacted provisions formerly contained in subsec.
(c)(1)(B) in subsec. (c)(1)(C).
Subsec. (c)(2)(B). Pub. L. 95-600, Sec. 104(d), redesignated cls.
(ii) to (iv) as (i) to (iii), respectively. Former cl. (i), which
provided that amounts be taken into account only if includible in
the gross income of the taxpayer for the taxable year, was struck
out.
Subsec. (f). Pub. L. 95-600, Sec. 104(c), added subsec. (f).
Subsec. (h). Pub. L. 95-600, Sec. 105(a), added subsec. (h).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 401(c)(1)(B),
substituted ''is allowed'' for ''shall be allowed'' and struck out
provisions relating to the application of the six-month rule.
Subsec. (b). Pub. L. 94-455, Sec. 401(c)(1)(B), struck out
provisions relating to the application of the six-month rule.
Subsec. (c)(1)(A). Pub. L. 94-455, Sec. 401(c)(2), among other
changes, substituted ''section 44A(f)(1)'' for ''section
214(b)(3)'' and ''if such child meets the requirements of section
151(e)(1)(B)'' for ''with respect to whom he is entitled to claim a
deduction under section 151(e)(1)(B)'' and inserted reference to a
child of that individual who is disabled (within the meaning of
section 72(m)(7)) and with respect to whom that individual is
entitled to claim a deduction under section 151.
1975 - Subsec. (a). Pub. L. 94-164 designated existing provisions
as par. (1) and added par. (2).
Subsec. (b). Pub. L. 94-164 designated existing provisions as
par. (1) and added par. (2).
EFFECTIVE AND TERMINATION DATES OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES
OF EARNED INCOME CREDIT.
(b) <<NOTE: 26 USC 32 note.>> Effective Date.--The amendment made by
this section shall apply to taxable years beginning after December 31,
2006.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by section 201(c)(3) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2000, see section 201(e)(1)
of Pub. L. 107-16, set out as a note under section 24 of this
title.
Pub. L. 107-16, title III, Sec. 303(i), June 7, 2001, 115 Stat.
57, provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section and section
6213 of this title) shall apply to taxable years beginning after
December 31, 2001.
''(2) Subsection (g). - The amendment made by subsection (g)
(amending section 6213 of this title) shall take effect on January
1, 2004.''
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106-170, title IV, Sec. 412(b), Dec. 17, 1999, 113 Stat.
1917, provided that: ''The amendments made by this section
(amending this section) shall apply to taxable years beginning
after December 31, 1999.''
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title VI, Sec. 6021(c), July 22, 1998, 112 Stat.
824, provided that:
''(1) Eligible individuals. - The 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 (Pub. L. 104-193).
''(2) Qualifying children. - The 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 (Pub. L. 101-508).''
Amendment by sections 6003(b) and 6010(p)(1), (2) of Pub. L.
105-206 effective, except as otherwise provided, as if included in
the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34,
to which such amendment relates, see section 6024 of Pub. L.
105-206, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 101(b) of Pub. L. 105-34 applicable to
taxable years beginning after Dec. 31, 1997, see section 101(e) of
Pub. L. 105-34, set out as an Effective Date note under section 24
of this title.
Amendment by section 312(d)(2) of Pub. L. 105-34 applicable to
sales and exchanges after May 6, 1997, with certain exceptions, see
section 312(d) of Pub. L. 105-34, set out as a note under section
121 of this title.
Section 1085(e) of Pub. L. 105-34 provided that:
''(1) The amendments made by subsection (a) (amending this
section and sections 6213 and 6695 of this title) shall apply to
taxable years beginning after December 31, 1996.
''(2) The amendments made by subsections (b), (c), and (d)
(amending this section) shall apply to taxable years beginning
after December 31, 1997.''
EFFECTIVE DATE OF 1996 AMENDMENT
Section 451(d) of Pub. L. 104-193 provided that: ''The amendments
made by this section (amending this section and section 6213 of
this title) 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 (Aug. 22, 1996).''
Section 909(c) of Pub. L. 104-193 provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section) shall apply
to taxable years beginning after December 31, 1995.
''(2) Advance payment individuals. - In the case of any
individual who on or before June 26, 1996, has in effect an earned
income eligibility certificate for the individual's taxable year
beginning in 1996, the amendments made by this section shall apply
to taxable years beginning after December 31, 1996.''
Section 910(c) of Pub. L. 104-193 provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section) shall apply
to taxable years beginning after December 31, 1995.
''(2) Advance payment individuals. - In the case of any
individual who on or before June 26, 1996, has in effect an earned
income eligibility certificate for the individual's taxable year
beginning in 1996, the amendments made by this section shall apply
to taxable years beginning after December 31, 1996.''
EFFECTIVE DATE OF 1995 AMENDMENT
Section 4(b) of Pub. L. 104-7 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1995.''
EFFECTIVE DATE OF 1994 AMENDMENT
Section 721(d)(1) of Pub. L. 103-465 provided that: ''The
amendment made by subsection (a) (amending this section) shall
apply to taxable years beginning after December 31, 1994.''
Section 722(b) of Pub. L. 103-465 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1994.''
Section 723(b) of Pub. L. 103-465 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1993.''
Section 742(c) of Pub. L. 103-465 provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section and section
6109 of this title) shall apply to returns for taxable years
beginning after December 31, 1994.
''(2) Exception. - The amendments made by this section shall not
apply to -
''(A) returns for taxable years beginning in 1995 with respect
to individuals who are born after October 31, 1995, and
''(B) returns for taxable years beginning in 1996 with respect
to individuals who are born after November 30, 1996.''
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13131(e) of Pub. L. 103-66 provided that: ''The
amendments made by this section (amending this section and sections
162, 213, and 3507 of this title) shall apply to taxable years
beginning after December 31, 1993.''
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11101(d)(1)(B) of Pub. L. 101-508 applicable
to taxable years beginning after Dec. 31, 1990, see section
11101(e) of Pub. L. 101-508, set out as a note under section 1 of
this title.
Section 11111(f) of Pub. L. 101-508 provided that: ''The
amendments made by this section (amending this section and sections
162, 213, and 3507 of this title) shall apply to taxable years
beginning after December 31, 1990.''
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by sections 104(b)(1)(B) and 111(a)-(d)(1) of Pub. L.
99-514 applicable to taxable years beginning after Dec. 31, 1986,
see section 151(a) of Pub. L. 99-514, set out as a note under
section 1 of this title.
Amendment by section 1272(d)(4) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 1277 of Pub. L. 99-514,
set out as a note under section 931 of this title.
Amendment by section 1301(j)(8) of Pub. L. 99-514 applicable to
bonds issued after Aug. 15, 1986, except as otherwise provided, see
sections 1311 to 1318 of Pub. L. 99-514, set out as an Effective
Date; Transitional Rules note under section 141 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 423(c)(3) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1984, see section 423(d) of
Pub. L. 98-369, set out as a note under section 2 of this title.
Section 1042(e) of Pub. L. 98-369 provided that: ''The amendments
made by this section (amending sections 32 and 3507 of this title)
shall apply to taxable years beginning after December 31, 1984.''
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-21 applicable to taxable years beginning
after Dec. 31, 1989, see section 124(d)(2) of Pub. L. 98-21, set
out as a note under section 1401 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable with respect to taxable
years beginning after Dec. 31, 1981, see section 115 of Pub. L.
97-34, set out as a note under section 911 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Section 101(b)(1)(A) of Pub. L. 96-222 provided that: ''The
amendment made by subsection (a)(1) (amending this section) shall
apply to taxable years beginning after December 31, 1977.''
Section 201 of Pub. L. 96-222 provided that: ''Except as
otherwise provided in title I, any amendment made by title I (see
Tables for classification) shall take effect as if it had been
included in the provision of the Revenue Act of 1978 (Pub. L.
95-600, see Tables for classification) to which such amendment
relates.''
EFFECTIVE DATE OF 1978 AMENDMENT
Section 104(f) of Pub. L. 95-600 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1978.''
Section 105(g)(1) of Pub. L. 95-600 provided that: ''The
amendments made by subsections (a) and (d) (amending this section
and section 6012 of this title) shall apply to taxable years
beginning after December 31, 1978.''
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION OF PRIOR LAW
Amendment by Pub. L. 95-615 applicable to taxable years beginning
after Dec. 31, 1977, with provision for election of prior law, see
section 209 of Pub. L. 95-615, set out as a note under section 911
of this title.
EFFECTIVE AND TERMINATION DATES OF 1976 AMENDMENT
Section 401(e) of Pub. L. 94-455, as amended by Pub. L. 95-30,
title I, Sec. 103(c), May 23, 1977, 91 Stat. 139; Pub. L. 95-600,
title I, Sec. 103(b), Nov. 6, 1978, 92 Stat. 2771, provided that:
''The amendments made by subsection (a) (amending sections 43 (now
32) and 6096 of this title) shall apply to taxable years ending
after December 31, 1975, and shall cease to apply to taxable years
ending after December 31, 1978. The amendments made by subsection
(c) (amending this section) shall apply to taxable years ending
after December 31, 1975. The amendments made by subsection (b)
(amending sections 141 and 6012 of this title) shall apply to
taxable years ending after December 31, 1975. The amendments made
by subsection (d) (amending section 3402 of this title) shall apply
to wages paid after September 14, 1976.''
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENTS
Section 2(g) of Pub. L. 94-164, as amended by Pub. L. 94-455,
Sec. 402(b), provided that: ''The amendments made by this section
(amending sections 43 (now 32), 141, 3402, and 6012 of this title
and provisions set out as notes under sections 42 and 43 (now 32)
of this title) (other than by subsection (d) (enacting provisions
set out as a note under this section)) apply to taxable years
ending after December 31, 1975, and before January 1, 1978.
Subsection (d) applies to taxable years ending after December 31,
1975.''
Section 209(b) of Pub. L. 94-12, as amended by Pub. L. 94-164,
Sec. 2(f), Dec. 23, 1975, 89 Stat. 972; Pub. L. 94-455, title IV,
Sec. 401(c)(1)(A), Oct. 4, 1976, 90 Stat. 1557; Pub. L. 95-30,
title I, Sec. 103(b), May 23, 1977, 91 Stat. 139; Pub. L. 95-600,
title I, Sec. 103(a), Nov. 6, 1978, 92 Stat. 2771, provided that:
''The amendments made by section 204 (enacting this section and
amending sections 6201 and 6401 of this title) shall apply to
taxable years beginning after December 31, 1974.''
PROGRAM TO INCREASE PUBLIC AWARENESS
Secretary of the Treasury, or Secretary's delegate, to establish
taxpayer awareness program to inform taxpaying public of
availability of earned income credit and child health insurance
under this section, see section 11114 of Pub. L. 101-508, set out
as a note under section 21 of this title.
EMPLOYEE NOTIFICATION
Section 111(e) of Pub. L. 99-514 provided that: ''The Secretary
of the Treasury is directed to require, under regulations,
employers to notify any employee who has not had any tax withheld
from wages (other than an employee whose wages are exempt from
withholding pursuant to section 3402(n) of the Internal Revenue
Code of 1986) that such employee may be eligible for a refund
because of the earned income credit.''
DISREGARD OF REFUND FOR DETERMINATION OF ELIGIBILITY FOR FEDERAL
BENEFITS OR ASSISTANCE
Section 2(d) of Pub. L. 94-164, as amended by Pub. L. 94-455,
title IV, Sec. 402(a), Oct. 4, 1976, 90 Stat. 1558; Pub. L. 95-600,
title I, Sec. 105(f), Nov. 6, 1978, 92 Stat. 2776; Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''Any refund
of Federal income taxes made to any individual by reason of section
43 (now 32) of the Internal Revenue Code of 1986 (formerly I.R.C.
1954) (relating to earned income credit), and any payment made by
an employer under section 3507 of such Code (relating to advance
payment of earned income credit) shall not be taken into account in
any year ending before 1980 as income or receipts for purposes of
determining the eligibility, for the month in which such refund is
made or any month thereafter of such individual or any other
individual for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any
State or local program financed in whole or in part with Federal
funds, but only if such individual (or the family unit of which he
is a member) is a recipient of benefits or assistance under such a
program for the month before the month in which such refund is
made.''
(Section 105(g)(3) of Pub. L. 95-600 provided that: ''Subsection
(f) (amending section 2(d) of Pub. L. 94-164, set out above) shall
take effect on the date of enactment of this Act (Nov. 6, 1978).'')
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 86, 129, 151, 995,
3507, 6051, 6211, 6213, 6695 of this title; title 2 section 905;
title 42 sections 502, 653, 1382a, 1382b.
