Sec. 201. Reform of earned income credit
363 words·~2 min read·
/bill/114/s/3231/is/section-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 32 of the Internal Revenue Code of 1986 is amended— by amending subsection
(b)to read as follows: For purposes of subsection (a): The credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with: The credit percentage is: The phaseout percentage is: No qualifying children 23.15 23.15 1 qualifying child 70 23.85 2 qualifying children 75 24.50 3 or more qualifying children 80 29.70. Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with: The earned income amount is: The phaseout amount is: No qualifying children $6,612 $16,969 1 qualifying child $8,277 $15,000 2 qualifying children $9,675 $15,000 3 qualifying children $12,220 $15,000. Except as provided in clause (ii), 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 $5,550. In the case of a joint return filed by an eligible individual and such individual’s spouse who do not have a qualifying child for the taxable year, the phaseout amount in the third column of the first row of the table in subparagraph
(A)shall be increased by $8,000. , in subclause
(II)of subsection (c)(1)(A)(ii), by striking attained age 25 but not attained age 65 and inserting attained age 21 but not attained age 67 , and by amending subsection
(j)to read as follows: In the case of any taxable year beginning after 2017, each of the dollar amounts in subparagraph
(A)of subsection (b)(2) (after being increased under subparagraph
(B)thereof) shall be increased by an amount equal to— such dollar amount, multiplied by 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 2016 for calendar year 1992 in subparagraph
(B)thereof. If any dollar amount increased under paragraph
(1)is not a multiple of $50, such dollar amount shall be rounded to the nearest multiple of $50. . The amendments made by this section shall apply to taxable years beginning after December 31, 2016.