Sec. 3. Tax credit for contributions to Medisave account during first year
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In the case of an individual who makes a contribution to a Medisave account before the end of the 1-year period beginning on the date of the enactment of this Act, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for the taxable year in which the contribution is made an amount equal to the aggregate of $1 for every $3 contributed to the account (other than a rollover contribution under section 530A(e)(5) of such Code) for such taxable year. The aggregate amount allowed to an individual as a credit under subsection
(a)for all taxable years shall not exceed $1,000. For purposes of this section— For purposes of the Internal Revenue Code of 1986, in the case of an eligible individual— Subsection
(a)shall be applied by substituting $1 for every $1 contributed for $1 for every $3 contributed . The credit allowed under this section shall be treated in the same manner as a credit allowed under subpart C of part IV of subchapter A of chapter 1 of such Code. The term eligible individual means, with respect to any taxable year, a taxpayer whose household income for the taxable year does not exceeds 400 percent of an amount equal to the poverty line for a family of the size involved. If the taxpayer is married (within the meaning of section 7703 of such Code) at the close of the taxable year— the taxpayer shall be treated as an eligible individual only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year, and paragraph
(1)shall be applied separately to each spouse. The terms family size , household income , modified adjusted gross income , and poverty line have the meaning given such terms by section 36B(d) of such Code. No credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins.