Sec. 20131. Child tax credit improvements for 2020
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Section 24 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In the case of any taxable year beginning in 2020— Subsection (h)(5) shall not apply and the increase determined under the first sentence of subsection (d)(1) shall be the amount determined under subsection (d)(1)(A) (determined without regard to subsection (h)(4)). Subsection (h)(2) shall not apply and subsection
(a)shall be applied by substituting $3,000 ($3,600 in the case of a qualifying child who has not attained age 6 as of the close of the calendar year in which the taxable year of the taxpayer begins) for $1,000 . This section shall be applied— by substituting age 18 for age 17 in subsection (c)(1), and by substituting described in subsection
(c)(determined after the application of subsection (i)(3)(A)) for described in subsection
(c)in subsection (h)(4)(A). . Chapter 77 of such Code is amended by inserting after section 7527 the following new section: As soon as practicable after the date of the enactment of this Act, the Secretary shall establish a program for making advance payments of the credit allowed under subsection
(a)of section 24 on a monthly basis (determined without regard to subsection (i)(4)) of such section), or as frequently as the Secretary determines to be administratively feasible, to taxpayers determined to be eligible for advance payment of such credit. The Secretary may make payments under subsection
(a)only to the extent that the total amount of such payments made to any taxpayer during the taxable year does not exceed an amount equal to the excess, if any, of— subject to paragraph (2), the amount determined under subsection
(a)of section 24 with respect to such taxpayer (determined without regard to subsection (i)(4)) of such section) for such taxable year, over the estimated tax imposed by subtitle A, as reduced by the credits allowable under subparts A and C (other than section 24) of such part IV, with respect to such taxpayer for such taxable year, as determined in such manner as the Secretary deems appropriate. The program described in subsection
(a)shall make reasonable efforts to apply the limitation of section 24(b) with respect to payments made under such program. The advance payments described in this section shall only be made with respect to credits allowed under section 24 for taxable years beginning during 2020. . Section 24(i) of such Code, as amended by subsection (a), is amended by adding at the end the following new paragraph: The amount of the credit allowed under this section for any taxable year shall be reduced (but not below zero) by the aggregate amount of any advance payments of such credit under section 7527A for such taxable year. If the aggregate amount of advance payments under section 7527A for the taxable year exceeds the amount of the credit allowed under this section for such taxable year (determined without regard to subparagraph (A)), the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess. . The table of sections for chapter 77 of such Code is amended by inserting after the item relating to section 7527 the following new item: Sec. 7527A. Advance payment of child tax credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.