Sec. 2101. 2020 recovery rebates for individuals
1,634 words·~7 min read·
/bill/116/s/3548/is/section-2101·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 6427 the following new section: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the lesser of— net income tax liability, or $1,200 ($2,400 in the case of a joint return). In the case of a taxpayer described in paragraph (2)— the amount determined under subsection
(a)shall not be less than $600 ($1,200 in the case of a joint return), and the amount determined under subsection
(a)(after the application of subparagraph (A)) shall be increased by the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer. A taxpayer is described in this paragraph if the taxpayer— has qualifying income of at least $2,500, or has— net income tax liability which is greater than zero, and gross income which is greater than the basic standard deduction. The credit allowed by subsection
(a)shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. The amount of the credit allowed by subsection
(a)(determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). For purposes of this section— The term qualifying income means— earned income, social security benefits (within the meaning of section 86(d)), and any compensation or pension received under chapter 11, chapter 13, or chapter 15 of title 38, United States Code. The term net income tax liability means the excess of— the sum of the taxpayer’s regular tax liability (within the meaning of section 26(b)) and the tax imposed by section 55 for the taxable year, over the credits allowed by part IV (other than section 24 and subpart C thereof) of subchapter A of chapter 1. The term eligible individual means any individual other than— any nonresident alien individual, 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 the individual’s taxable year begins, and an estate or trust. The term earned income has the meaning set forth in section 32(c)(2) except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. The term basic standard deduction shall have the same meaning as when used in section 63 (as modified by subsection (c)(7) of such section). The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (g). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). In the case of a refund or credit made or allowed under subsection
(g)with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return. Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2018 shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the advance refund amount for such taxable year. For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if this section (other than subsection
(f)and this subsection) had applied to such taxable year. The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2020. No interest shall be allowed on any overpayment attributable to this section. In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may apply such paragraph by substituting 2019 for 2018 . No credit shall be allowed under subsection
(a)to an eligible individual who does not include on the return of tax for the taxable year— such individual’s valid identification number, in the case of a joint return, the valid identification number of such individual’s spouse, and in the case of any qualifying child taken into account under subsection (b)(1)(B), the valid identification number of such qualifying child. For purposes of paragraph (1), the term valid identification number means a social security number (as such term is defined in section 24(h)(7)). For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted, the term valid identification number shall include the adoption taxpayer identification number of such child. The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section. . Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking and 36B, 168(k)(4) and inserting 36B, and 6428 . Section 6213(g)(2)(L) of such Code is amended by striking or 32 and inserting 32, or 6428 . 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 amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. 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 amendments made by this section 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. No credit shall be allowed against United States income taxes under section 6428 of the Internal Revenue Code of 1986 (as added by this section) to any person— to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or who is eligible for a payment under a plan described in paragraph (1)(B). For purposes of this subsection, the term possession of the United States includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. For purposes of this subsection, 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. For purposes of section 1324 of title 31, 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. Any credit or refund allowed or made to any individual by reason of section 6428 of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection
(c)of this section shall not be subject to reduction or offset pursuant to— section 3716 or 3720A of title 31, United States Code, or subsection (d), (e), or
(f)of section 6402 of the Internal Revenue Code of 1986. Immediately upon the enactment of this Act, the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020: For an additional amount for Department of the Treasury—Bureau of the Fiscal Service—Salaries and Expenses , $78,650,000, to remain available until September 30, 2021. For an additional amount for Department of the Treasury—Internal Revenue Service—Taxpayer Services , $70,200,000, to remain available until September 30, 2021. For an additional amount for Department of the Treasury—Internal Revenue Service—Operations Support , $209,600,000, to remain available until September 30, 2021. For an additional amount for Social Security Administration—Limitation on Administrative Expenses , $38,000,000, to remain available until September 30, 2020. No later than 15 days after enactment of this Act, the Secretary of the Treasury shall submit a plan to the Committees on Appropriations of the House of Representatives and the Senate detailing the expected use of the funds provided by paragraph (1)(A). Beginning 90 days after enactment of this Act, the Secretary of the Treasury shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the actual expenditure of funds provided by paragraph (1)(A) and the expected expenditure of such funds in the subsequent quarter. Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting “6428,” after “54B(h),”. The table of sections for subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6427 the following: Sec. 6428. 2020 Recovery Rebates for individuals. .