Sec. 137401. Certain improvements to the earned income tax credit made permanent
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/bill/117/hr/5376/rh/section-137401·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 32(c)(1)(A)(ii)(II) is amended by striking age 25 and inserting the applicable minimum age . Section 32(c) is amended by adding at the end the following new paragraph: The term applicable minimum age means— except as otherwise provided in this subparagraph, age 19, in the case of a specified student (other than a qualified former foster youth or a qualified homeless youth), age 24, and in the case of a qualified former foster youth or a qualified homeless youth, age 18.
For purposes of this paragraph, the term specified student means, with respect to any taxable year, an individual who is an eligible student (as defined in section 25A(b)(3)) during at least 5 calendar months during the taxable year. For purposes of this paragraph, the term qualified former foster youth means an individual who— on or after the date that such individual attained age 14, was in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under part B or part E of title IV of the Social Security Act (without regard to whether Federal assistance was provided with respect to such child under such part E), and provides (in such manner as the Secretary may provide) consent for entities which administer a plan under part B or part E of title IV of the Social Security Act to disclose to the Secretary information related to the status of such individual as a qualified former foster youth.
For purposes of this paragraph, the term qualified homeless youth means, with respect to any taxable year, an individual who certifies, in a manner as provided by the Secretary, that such individual is either an unaccompanied youth who is a homeless child or youth, or is unaccompanied, at risk of homelessness, and self-supporting. . Section 32(c)(1)(A)(ii)(II) is amended by striking but not attained age 65 . The table contained in section 32(b)(1) is amended by striking 7.65 each place it appears therein and inserting 15.3 .
The table contained in section 32(b)(2)(A) is amended— by striking $4,220 and inserting $9,820 , and by striking $5,280 and inserting $11,610 . Section 32(j)(1) is amended— by striking (2021 in the case of the dollar amount in subsection (i)(1)) and inserting (2021 in the case of the $9,820 and $11,610 amounts in subsection (b)(2)(A) and the $10,000 amount in subsection (i)(1)) , in subparagraph (B)(i), by inserting (other than the $9,820 and $11,610 amounts) after subsection (b)(2)(A) , and in subparagraph (B)(iii), by inserting the $9,820 and $11,610 amounts in subsection (b)(2)(A) and before the $10,000 amount in subsection (i)(1) .
Section 32, as amended by subsection (f), is amended by adding at the end the following new subsection: In the case of a taxpayer whose earned income for any taxable year is less than the earned income of such taxpayer for the preceding taxable year, if such taxpayer elects (at such time and in such manner as the Secretary may provide) the application of this subsection for such taxable year, the earned income of such taxpayer for such taxable year shall be treated for purposes of this section as being equal to the earned income of such taxpayer for such preceding taxable year.
For purposes of this subsection, in the case of a joint return, the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for the preceding taxable year. In the case of a taxpayer described in paragraph
(1)who makes the election described in such paragraph, the use on the return for purposes of this section of an amount of earned income for the preceding taxable year which differs from the amount of such earned income as shown in the electronic files of the Internal Revenue Service shall be treated as a mathematical or clerical error for purposes of section 6213. Any provision of this title which defines or determines earned income by reference to this section shall be applied without regard to this subsection unless such provision specifically provides otherwise. . Section 32 is amended by striking subsection (n). The amendments made by this section shall apply to taxable years beginning after December 31, 2021.