S 24 ISCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to strengthen the earned income tax credit.CommentsClose CommentsPermalink

January 7, 2009CommentsClose CommentsPermalink

Mr. KERRY (for himself and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to strengthen the earned income tax credit.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Strengthen the Earned Income Tax Credit Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. STRENGTHEN THE EARNED INCOME TAX CREDIT.

(a) Reduction in Marriage Penalty-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 32(b)(2) of the Internal Revenue Code of 1986 is amended by striking ‘increased by’ and all that follows and inserting ‘increased by $5,000.’.CommentsClose CommentsPermalink





(2) INFLATION ADJUSTMENT- Clause (ii) of section 32(j)(1)(B) of such Code is amended--CommentsClose CommentsPermalink





(A) by striking ‘$3,000 amount in subsection (b)(2)(B)(iii)’ and inserting ‘$5,000 amount in subsection (b)(2)(B)’, andCommentsClose CommentsPermalink





(B) by striking ‘calendar year 2007’ and inserting ‘calendar year 2008’.CommentsClose CommentsPermalink





(b) Increase in Credit Percentage for Families With 3 or More Children- The table contained in section 32(b)(1)(A) of the Internal Revenue Code of 1986 (relating to percentages) is amended--CommentsClose CommentsPermalink





(1) by striking ‘2 or more qualifying children’ in the second row and inserting ‘2 qualifying children’, andCommentsClose CommentsPermalink





(2) by inserting after the second row the following new item:CommentsClose CommentsPermalink

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‘3 or more qualifying children 45 21.06’. CommentsClose CommentsPermalink

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(c) Increased Credit for Individuals With No Qualifying Children-CommentsClose CommentsPermalink





(1) IN GENERAL- The table in subparagraph (A) of section 32(b)(2) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking ‘$4,220’ in the second column and inserting ‘$7,250’, andCommentsClose CommentsPermalink





(B) by striking ‘$5,280’ in the last column and inserting ‘$14,500’.CommentsClose CommentsPermalink





(2) TRANSITIONAL PHASEOUT AMOUNT FOR 2009-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 32(b)(2) of such Code, as amended by subsection (a), is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





‘(B) TRANSITIONAL PHASEOUT AMOUNT FOR ELIGIBLE INDIVIDUALS WITH NO QUALIFYING CHILDREN IN 2009- In the case of taxable years beginning in 2009, the phaseout amount for an eligible individual with no qualifying children shall be $13,800.’.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENT- Subparagraph (C) of section 32(b)(2) of such Code, as redesignated by paragraph (2), is amended by inserting ‘or (B)’ after ‘subparagraph (A)’.CommentsClose CommentsPermalink





(3) INFLATION ADJUSTMENTS- Subparagraph (B) of section 32(j)(1) of the Internal Revenue Code of 1986, as amended by subsection (a), is amended--CommentsClose CommentsPermalink





(A) in clause (i)--CommentsClose CommentsPermalink





(i) by inserting ‘(other than the amounts relating to individuals with no qualifying children)’ after ‘(b)(2)(A)’, andCommentsClose CommentsPermalink





(ii) by striking ‘and’ at the end,CommentsClose CommentsPermalink





(B) in clause (ii)--CommentsClose CommentsPermalink





(i) by striking ‘(b)(2)(B)’ and inserting ‘(b)(2)(C) and the $7,250 amount in the table in subsection (b)(2)(A)’, andCommentsClose CommentsPermalink





(ii) by striking the period and inserting ‘, and’, andCommentsClose CommentsPermalink





(C) by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(iii) in the case of the $14,500 amount in the table in subsection (b)(2)(A), by substituting ‘calendar year 2009’ for ‘calendar year 1992’ in subparagraph (B) of such section 1.’.CommentsClose CommentsPermalink





(d) Credit Increase and Reduction in Phaseout for Individuals With No Children- The table contained in section 32(b)(1)(A) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘7.65’ in the second column of the third row and inserting ‘15.3’, andCommentsClose CommentsPermalink





(2) by striking ‘7.65’ in the third column of the third row and inserting ‘15.3’.CommentsClose CommentsPermalink





(e) Credit Allowed for Certain Childless Individuals Over Age 21- Subclause (II) of section 32(c)(1)(A)(ii) of the Internal Revenue Code of 1986 (relating to eligible individual) is amended by striking ‘age 25’ and inserting ‘age 21’.CommentsClose CommentsPermalink





(f) Modification of Abandoned Spouse Rule-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to eligible individual) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(G) CERTAIN MARRIED INDIVIDUALS LIVING APART- For purposes of this section, an individual who--CommentsClose CommentsPermalink





‘(i) is married (within the meaning of section 7703(a)) and files a separate return for the taxable year,CommentsClose CommentsPermalink





‘(ii) lives with a qualifying child of the individual for more than one-half of such taxable year, andCommentsClose CommentsPermalink





‘(iii) during the last 6 months of such taxable year, does not have the same principal place of abode as the individual’s spouse, shall not be considered as married.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) The last sentence of section 32(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking ‘section 7703’ and inserting ‘section 7703(a)’.CommentsClose CommentsPermalink





(B) Section 32(d) of such Code is amended by striking ‘In the case of an individual who is married (within the meaning of section 7703)’ and inserting ‘In the case of an individual who is married (within the meaning of section 7703(a)) and is not described in subsection (c)(1)(G)’.CommentsClose CommentsPermalink





(g) Elimination of Disqualified Investment Income Test-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 32 of the Internal Revenue Code of 1986 is amended by striking subsection (i).CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 32(j)(1)(B)(i) of such Code, as amended by this Act, is amended--CommentsClose CommentsPermalink





(i) by striking ‘subsections’ and inserting ‘subsection’, andCommentsClose CommentsPermalink





(ii) by striking ‘and (i)(1)’.CommentsClose CommentsPermalink





(B) Section 32(j)(2) of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(2) ROUNDING- If any dollar amount in subsection (b)(2)(A) (after being increased under subparagraph (B) thereof), after being increased under paragraph (1), is not a multiple of $10, such amount shall be rounded to the next nearest multiple of $10.’.CommentsClose CommentsPermalink





(h) Simplification of Rules Regarding Presence of Qualifying Child-CommentsClose CommentsPermalink





(1) TAXPAYER ELIGIBLE FOR CREDIT FOR WORKER WITHOUT QUALIFYING CHILD IF QUALIFYING CHILD CLAIMED BY ANOTHER MEMBER OF FAMILY- Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to eligible individual), as amended by this Act, is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(H) TAXPAYER ELIGIBLE FOR CREDIT FOR WORKER WITHOUT QUALIFYING CHILD IF QUALIFYING CHILD CLAIMED BY ANOTHER MEMBER OF FAMILY-CommentsClose CommentsPermalink





‘(i) GENERAL RULE- Except as provided in clause (ii), in the case of 2 or more eligible individuals who may claim for such taxable year the same individual as a qualifying child, if such individual is claimed as a qualifying child by such an eligible individual, then any other such eligible individual who does not make such a claim of such child or of any other qualifying child may be considered an eligible individual without a qualifying child for purposes of the credit allowed under this section for such taxable year.CommentsClose CommentsPermalink





‘(ii) EXCEPTION IF QUALIFYING CHILD CLAIMED BY PARENT- If an individual is claimed as a qualifying child for any taxable year by an eligible individual who is a parent of such child, then no other parent of such child who does not make such a claim of such child or of any other qualifying child may be considered an eligible individual without a qualifying child for purposes of the credit allowed under this section for such taxable year.’.CommentsClose CommentsPermalink





(2) TAXPAYER ELIGIBLE FOR CREDIT FOR WORKER WITHOUT QUALIFYING CHILD IF QUALIFYING CHILDREN DO NOT HAVE VALID SOCIAL SECURITY NUMBER- Subparagraph (F) of section 32(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(F) INDIVIDUALS WHO DO NOT INCLUDE TIN, ETC., OF ANY QUALIFYING CHILD- In the case of any eligible individual who has one or more qualifying children, if no qualifying child of such individual is taken into account under subsection (b) by reason of paragraph (3)(D), for purposes of the credit allowed under this section, such individual may be considered an eligible individual without a qualifying child.’.CommentsClose CommentsPermalink





(i) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink





(j) Repeal of EGTRRA Sunset- Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions of such Act) shall not apply to section 303 of such Act.CommentsClose CommentsPermalink