113 HR 3393 PCS: Student and Family Tax Simplification Act
U.S. House of Representatives
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.The table of contents for this Act is as follows:
Sec. 1. Table of Contents.
Title I—Student and Family Tax Simplification Act
Sec. 101. Short title.
Sec. 102. Consolidation of certain tax benefits for educational expenses.
Sec. 103. Expansion of Pell Grant exclusion from gross income.
Sec. 104. Budgetary effects.
Title II—Child Tax Credit Improvement Act
Sec. 201. Short title.
Sec. 202. Elimination of marriage penalty in child tax credit; inflation adjustment of credit
amount and phaseout thresholds in child tax credit.
Sec. 203. Social security number required to claim the refundable portion of the child tax credit.
Sec. 204. Budgetary effects.
<enum>I</enum><header>Student and Family Tax Simplification Act</header>
<section id="H16E68D963CCA4FD3ACB76099AFDD4BB1"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Student and Family Tax Simplification Act</short-title></quote>.</text>
</section><section id="H748054531C7E4274BB7B35976D386CD9" section-type="subsequent-section"><enum>102.</enum><header>Consolidation of certain tax benefits for educational expenses</header>
<subsection id="H5A983879257E4854B21E5EDF9C7C2D82"><enum>(a)</enum><header>American opportunity tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25A">Section 25A</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H20A4D31009524A29A50A02193B1F0120" style="OLC">
<section id="H5D54C142E77A46EDB027811259CA4FE4"><enum>25A.</enum><header>American opportunity tax credit</header>
<subsection id="HDD0DBBF2FE734EEC99D78120EE5FA1F8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual, there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year, with respect to each eligible student, an
amount equal to the sum of—</text>
<paragraph id="HB7A503FD2654456DA0AB25230E30E14E"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during
the taxable year (for education furnished to the eligible student during
any academic period beginning in such taxable year) as does not exceed
$2,000, plus</text>
</paragraph><paragraph id="H8AA66507A7834188B8CE5755ADD1549A"><enum>(2)</enum><text>25 percent of so much of such expenses so paid as exceeds the dollar amount in effect under
paragraph (1) but does not exceed twice such dollar amount.</text>
</paragraph></subsection><subsection id="H4568106BD35643D9A7699199667DF479"><enum>(b)</enum><header>Portion of credit refundable</header><text>So much of the credit allowable under subsection (a) with respect to each eligible student
(determined without regard to this subsection and section 26(a) and after
application of all other provisions of this section) as does not exceed
$1,500 shall be treated as a credit allowable under subpart C (and not
under this part). The preceding sentence shall not apply to any taxpayer
for any taxable year if such taxpayer is a child to whom section 1(g)
applies for such taxable year.</text>
</subsection><subsection id="HC48B636F19884666AFAEB2425179F7A7"><enum>(c)</enum><header>Limitation based on modified adjusted gross income</header>
<paragraph id="HB73E868067F44A928F3228C09C1ED024"><enum>(1)</enum><header>In general</header><text>The amount allowable as a credit under subsection (a) for any taxable year shall be reduced (but
not below zero) by an amount which bears the same ratio to the amount so
allowable (determined without regard to this subsection and subsection (b)
but after application of all other provisions of this section) as—</text>
<subparagraph id="HF3E6B8197CA04F1188076673EECCA73D"><enum>(A)</enum><text>the excess of—</text>
<clause id="H7797607C408C41789314CF8A1EC1AB08"><enum>(i)</enum><text>the taxpayer’s modified adjusted gross income for such taxable year, over</text>
</clause><clause id="H49097096FD9E4B0BA22674CFF0920B4F"><enum>(ii)</enum><text>$80,000 (twice such amount in the case of a joint return), bears to</text>
</clause></subparagraph><subparagraph id="H6868CE12177E4B9EA7E3CB6EED1A7ADC"><enum>(B)</enum><text>$10,000 (twice such amount in the case of a joint return).</text>
</subparagraph></paragraph><paragraph id="H034E21A8D2904AC1A1428396E7802B95"><enum>(2)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>modified adjusted gross income</quote> means the adjusted gross income of the taxpayer for the taxable year increased by any amount
excluded from gross income under section 911, 931, or 933.</text>
</paragraph></subsection><subsection id="H4F606F3883AE4D5293757F6B8F893B6B"><enum>(d)</enum><header>Other limitations</header><text display-inline="yes-display-inline">No credit shall be allowed under this section with respect to any eligible student for any taxable
year if—</text>
<paragraph id="H5B45CF8871744CC0945FEE1125165B0B"><enum>(1)</enum><text>such student was taken into account in determining the credit allowed under this section (by the
taxpayer or any other individual) for any 4 prior taxable years, or</text>
</paragraph><paragraph id="H8B82A14F51CB4773A601734B11EB600C"><enum>(2)</enum><text>such student has completed (before the beginning of such taxable year) the first 4 years of
postsecondary education at an eligible educational institution.</text>
</paragraph></subsection><subsection id="HFBFEC8D789E748649EB110080C2B2778"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="HE7042A452DF444CC827DFEA5633F0FC6"><enum>(1)</enum><header>Eligible student</header><text display-inline="yes-display-inline">The term <quote>eligible student</quote> means, with respect to any academic period, a student who—</text>
<subparagraph id="H8967FC4401CE45F8A3F26873D6ABD874"><enum>(A)</enum><text>meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091(a)(1)</external-xref>), as in effect on August 5, 1997, and</text>
</subparagraph><subparagraph id="H5CA40C3D3AD04F0EAC50C11F15632961"><enum>(B)</enum><text>is carrying at least <fraction>1/2</fraction> the normal full-time work load for the course of study the student is pursuing.</text>
</subparagraph></paragraph><paragraph id="H5707A43105EF429C937E9F4CD3D85ACE"><enum>(2)</enum><header>Qualified tuition and related expenses</header>
<subparagraph id="H7F45B571EE5E4BCC83E122CD5DA47E67"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified tuition and related expenses</quote> means tuition, fees, and course materials, required for enrollment or attendance of—</text>
<clause id="H03B5B497419D4F738EBF953C083DB3AB"><enum>(i)</enum><text>the taxpayer,</text>
</clause><clause id="HE599EC20D004455BA722EE8C65EFFD7C"><enum>(ii)</enum><text>the taxpayer’s spouse, or</text>
</clause><clause id="H51FC24C164454469820364D81032DA0A"><enum>(iii)</enum><text display-inline="yes-display-inline">any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under
section 151,</text></clause><continuation-text continuation-text-level="subparagraph">at an eligible educational institution for courses of instruction of such individual at such
institution.</continuation-text></subparagraph><subparagraph id="H7B35D02C958C40B38094E8AE8D4906F2"><enum>(B)</enum><header>Exception for education involving sports, etc</header><text display-inline="yes-display-inline">Such term does not include expenses with respect to any course or other education involving sports,
games, or hobbies, unless such course or other education is part of the
individual’s degree program.</text>
</subparagraph><subparagraph id="HB22E067030E94CB5B696AA658DD133F8"><enum>(C)</enum><header>Exception for nonacademic fees</header><text display-inline="yes-display-inline">Such term does not include student activity fees, athletic fees, insurance expenses, or other
expenses unrelated to an individual's academic course of instruction.</text>
</subparagraph></paragraph><paragraph id="H5FD812048C0945C7B1CA7EF8DAC39831"><enum>(3)</enum><header>Eligible educational institution</header><text>The term <quote>eligible educational institution</quote> means an institution—</text>
<subparagraph id="HBDB4C25A488349BA937EE562BE2CF891"><enum>(A)</enum><text display-inline="yes-display-inline">which is described in section 481 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088</external-xref>), as in effect on August 5, 1997, and</text>
</subparagraph><subparagraph id="HF574141106344A17873198B672690B73"><enum>(B)</enum><text>which is eligible to participate in a program under title IV of such Act.</text>
</subparagraph></paragraph></subsection><subsection id="HC10F4214195E48FB988225CA66ADEFBC"><enum>(f)</enum><header>Special rules</header>
<paragraph id="H7580CCF7735F4A8DB501B18D0824EFE6"><enum>(1)</enum><header>Identification requirement</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) to a taxpayer with respect to the qualified tuition
and related expenses of an individual unless the taxpayer includes the
name and taxpayer identification number of such individual, and the
employer identification number of any institution to which such expenses
were paid, on the return of tax for the taxable year.</text>
</paragraph><paragraph id="H21B7824DD6474E26BF69064338C9ADD6"><enum>(2)</enum><header>Adjustment for certain scholarships, etc</header>
<subparagraph id="HD77CBC35B5794AC6AC7525F251CEE37F"><enum>(A)</enum><header>In general</header><text>The amount of qualified tuition and related expenses otherwise taken into account under subsection
(a) with respect to an individual for an academic period shall be reduced
(before the application of subsection (c)) by the sum of any amounts paid
for the benefit of such individual which are allocable to such period as—</text>
<clause id="HDD33C51BCCAA46029FE31E7F2EF52393"><enum>(i)</enum><text display-inline="yes-display-inline">a qualified scholarship which is excludable from gross income under section 117,</text>
</clause><clause id="HED71F9CE4BB14C5D87F48B290903454A"><enum>(ii)</enum><text>an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States
Code, or under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/1606">chapter 1606</external-xref> of title 10, United States Code, and</text>
</clause><clause id="H69D47077FB034072A33385BDB30FC5AB"><enum>(iii)</enum><text>a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a))
for such individual's educational expenses, or attributable to such
individual's enrollment at an eligible educational institution, which is
excludable from gross income under any law of the United States.</text>
</clause></subparagraph><subparagraph id="H8D687017497F420AAEE22719033A57E0"><enum>(B)</enum><header>Coordination with Pell Grants not used for qualified tuition and related expenses</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the amount of any Federal Pell Grant under section 401 of the
Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) shall be reduced (but not below zero) by the amount of expenses (other than qualified tuition and
related expenses) which are taken into account in determining the cost of
attendance (as defined in section 472 of the Higher Education Act of 1965,
as in effect on the date of the enactment of this paragraph) of such
individual at an eligible educational institution for the academic period
for which the credit under this section is being determined.</text>
</subparagraph></paragraph><paragraph id="H49D5D07ACEC64CD8A11F441F51ADCCA0"><enum>(3)</enum><header>Treatment of expenses paid by dependent</header><text display-inline="yes-display-inline">If a deduction under section 151 with respect to an individual is allowed to another taxpayer for a
taxable year beginning in the calendar year in which such individual’s
taxable year begins—</text>
<subparagraph id="HA01B16FC875A4B2B9F366A013896E561"><enum>(A)</enum><text>no credit shall be allowed under subsection (a) to such individual for such individual’s taxable
year, and</text>
</subparagraph><subparagraph id="H264BA22DCC9C4FFBB8A79511DBD86C20"><enum>(B)</enum><text>qualified tuition and related expenses paid by such individual during such individual’s taxable
year shall be treated for purposes of this section as paid by such other
taxpayer.</text>
</subparagraph></paragraph><paragraph id="H3699E177C9FC46CA86992A739FFF07DD"><enum>(4)</enum><header>Treatment of certain prepayments</header><text>If qualified tuition and related expenses are paid by the taxpayer during a taxable year for an
academic period which begins during the first 3 months following such
taxable year, such academic period shall be treated for purposes of this
section as beginning during such taxable year.</text>
</paragraph><paragraph id="HA076A7AAE9A947FAB0CF60EF1178D6EE"><enum>(5)</enum><header>Denial of double benefit</header><text>No credit shall be allowed under this section for any amount for which a deduction is allowed under
any other provision of this chapter.</text>
</paragraph><paragraph id="H6041F80B88964AC8B01211E4D5D8E075"><enum>(6)</enum><header>No credit for married individuals filing separate returns</header><text>If the taxpayer is a married individual (within the meaning of section 7703), this section shall
apply only if the taxpayer and the taxpayer’s spouse file a joint return
for the taxable year.</text>
</paragraph><paragraph id="H3EAB3D5757DA4877A4149329152E739C"><enum>(7)</enum><header>Nonresident aliens</header><text>If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section
shall apply only if such individual is treated as a resident alien of the
United States for purposes of this chapter by reason of an election under
subsection (g) or (h) of section 6013.</text>
</paragraph></subsection><subsection id="H8E2C277EA9D3415BBDC83794B7F975C5"><enum>(g)</enum><header>Inflation adjustment</header>
<paragraph id="H4C4678228A5447A4934F09428962BB54"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2018, the $2,000 amount in subsection (a)(1), the
$1,500 amount in subsection (b), and the $80,000 amount in subsection
(c)(1)(A)(ii) shall each be increased by an amount equal to—</text>
<subparagraph id="H3CE98021C42940C188F47BD8325B5490"><enum>(A)</enum><text>such dollar amount, multiplied by</text>
</subparagraph><subparagraph id="HC90E2F6F71B543E7A3D956FBF4DE9457"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting <quote>calendar year 2017</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subparagraph></paragraph><paragraph id="HDA494C9D52074D9EB2CBA51AB52802D8"><enum>(2)</enum><header>Rounding</header><text>If any amount as adjusted under paragraph (1) is not a multiple of $100 ($1,000 in the case of the
amount in subsection (c)(1)(A)(ii)), such amount shall be rounded to the
next lowest multiple of $100 ($1,000 in the case of the amount in
subsection (c)(1)(A)(ii)).</text>
</paragraph></subsection><subsection id="H3EFD7FC9C6804020B8065B2CE7151E03"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate
to carry out this section, including regulations providing for a recapture
of the credit allowed under this section in cases where there is a refund
in a subsequent taxable year of any amount which was taken into account in
determining the amount of such credit.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6C0164EA669541EC915F855395EBE6AC"><enum>(b)</enum><header>Requirement To report tuition paid rather than tuition billed</header><text>Section 6050S(b)(2)(B)(i) is amended by striking <quote>or the aggregate amount billed</quote>.</text>
</subsection><subsection id="H7532517FAD88433297AFC148F0F5B841"><enum>(c)</enum><header>Repeal of deduction for qualified tuition and related expenses</header><text display-inline="yes-display-inline">Part VII of subchapter B of chapter 1 of such Code is amended by striking section 222 (and by
striking the item relating to such section in the table of sections for
such part).</text>
</subsection><subsection id="HB770DB9767864BBE85FB5AAF7969062D"><enum>(d)</enum><header>Conforming amendments</header>
<paragraph id="H57C0847944F0402996200268C5A95ACF"><enum>(1)</enum><text>Section 62(a) of such Code is amended by striking paragraph (18).</text>
</paragraph><paragraph id="H156002606295484A9107836B925E22FD"><enum>(2)</enum><text>Section 72(t)(7)(B) of such Code is amended by striking <quote>section 25A(g)(2)</quote> and inserting <quote>section 25A(f)(2)</quote>.</text>
</paragraph><paragraph id="H90A57C7584984A8698F25EDB3C10222E"><enum>(3)</enum><text>Sections 86(b)(2)(A), 135(c)(4)(A), 137(b)(3)(A), 199(d)(2)(A), 219(g)(3)(A)(ii), and
221(b)(2)(C)(i) of such Code are each amended by striking <quote>222,</quote>.</text>
</paragraph><paragraph id="HD8D7FE28C7A7457BB86B738EF12A7C11"><enum>(4)</enum><text>Section 469(i)(3)(F)(iii) of such Code is amended by striking <quote>221, and 222</quote> and inserting <quote>and 221</quote>.</text>
</paragraph><paragraph id="HB312796EE1734399894BD86A8F3D5649"><enum>(5)</enum><text display-inline="yes-display-inline">Section 529(c)(3)(B)(v)(I) of such Code is amended by striking <quote>section 25A(g)(2)</quote> and inserting <quote>section 25A(f)(2)</quote>.</text>
</paragraph><paragraph id="H8E81C3F38DD84A92BF99E8FAAE85064D"><enum>(6)</enum><text display-inline="yes-display-inline">Section 529(e)(3)(B)(i) of such Code is amended by striking <quote>section 25A(b)(3)</quote> and inserting <quote>section 25A(d)</quote>.</text>
</paragraph><paragraph id="H8429DDA6BA3F4386BD7A058EDDDD718D"><enum>(7)</enum><text display-inline="yes-display-inline">Section 530(d)(2)(C) of such Code is amended—</text>
<subparagraph id="HA5CBBCFDA98845B3BA878FF437125325"><enum>(A)</enum><text>by striking <quote>section 25A(g)(2)</quote> in clause (i)(I) and inserting <quote>section 25A(f)(2)</quote>, and</text>
</subparagraph><subparagraph id="H3D7D794FE9274846A0736F31F8CC1B72"><enum>(B)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">Hope and Lifetime Learning credits</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">American opportunity tax credit</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph id="H1BBEA2583C5C4088AA29390A4FE011E4"><enum>(8)</enum><text display-inline="yes-display-inline">Section 530(d)(4)(B)(iii) of such Code is amended by striking <quote>section 25A(g)(2)</quote> and inserting <quote>section 25A(d)(4)(B)</quote>.</text>
</paragraph><paragraph id="H95A078FAEE5D4740B9EE0B842E38927A"><enum>(9)</enum><text display-inline="yes-display-inline">Section 6050S(e) of such Code is amended by striking <quote>subsection (g)(2)</quote> and inserting <quote>subsection (f)(2)</quote>.</text>
</paragraph><paragraph id="H72A33726C8D64622893D7EF36BBF64E8"><enum>(10)</enum><text display-inline="yes-display-inline">Section 6211(b)(4)(A) of such Code is amended by striking <quote>subsection (i)(6)</quote> and inserting <quote>subsection (b)</quote>.</text>
</paragraph><paragraph id="H526F8C431D09449E973CF6C5441EC23D"><enum>(11)</enum><text display-inline="yes-display-inline">Section 6213(g)(2)(J) of such Code is amended by striking <quote>TIN required under section 25A(g)(1)</quote> and inserting <quote>TIN, and employer identification number, required under section 25A(f)(1)</quote>.</text>
</paragraph><paragraph id="H936C724E87E64B80BE21928B45116FC1"><enum>(12)</enum><text>Section 1004(c) of division B of the American Recovery and Reinvestment Tax Act of 2009 is amended—</text>
<subparagraph id="HCF45F75DD2D3499D8B1584B9A9B361AC"><enum>(A)</enum><text>in paragraph (1)—</text>
<clause id="HD0FD274B7A90415B8D6DCBD915DFE496"><enum>(i)</enum><text>by striking <quote>section 25A(i)(6)</quote> each place it appears and inserting <quote>section 25A(b)</quote>,</text>
</clause><clause id="HFE7225A835C941198C859080C4696E4B"><enum>(ii)</enum><text>by striking “with respect to taxable years beginning after 2008 and before 2018” in subparagraph
(A) and inserting “with respect to each taxable year”, and</text>
</clause><clause id="HDBF9029C9CD4484BAB1B6FD390174B11"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking “for taxable years beginning after 2008 and before 2018” in subparagraph (B) and
inserting “for each taxable year”,</text>
</clause></subparagraph><subparagraph id="HB023398ED9164842836EE4DF9DF60E42"><enum>(B)</enum><text>in paragraph (2), by striking <quote>Section 25A(i)(6)</quote> and inserting <quote>Section 25A(b)</quote>, and</text>
</subparagraph><subparagraph id="HD0ED17CD58BE4E12BCF0629C56C5B4B7"><enum>(C)</enum><text>in paragraph (3)(C), by striking <quote>subsection (i)(6)</quote> and inserting <quote>subsection (b)</quote>.</text>
</subparagraph></paragraph><paragraph id="H09D3645753D14C7D8AAC79F3B1ECDF76"><enum>(13)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by striking the item relating to <external-xref legal-doc="usc" parsable-cite="usc/26/25">section 25</external-xref>A and inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H2FD04FA9BB514823885F4DF2271E4B8A" style="OLC">
<toc container-level="quoted-block-container" idref="H20A4D31009524A29A50A02193B1F0120" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H5D54C142E77A46EDB027811259CA4FE4" level="section">Sec. 25A. American opportunity tax credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2B3CFFCF50244CEBA74B9BFB027A827C"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection></section><section display-inline="no-display-inline" id="H2719D8E31C5A4432A825C333523F157E" section-type="subsequent-section"><enum>103.</enum><header>Expansion of Pell Grant exclusion from gross income</header>
<subsection id="HCBF0FCBD7630406C8C32FA0218489F87"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/117">section 117(b)</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="HA5AFBF8270144853BE60F5959353A434"><enum>(1)</enum><text>by striking the period at the end and inserting <quote>, or</quote>,</text>
</paragraph><paragraph id="H290CC40AA9E14B7BB7DCC38A06D67238"><enum>(2)</enum><text>by striking <quote>received by an individual as a scholarship</quote> and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="H796121B8A6904547B72F8E28F1947E31" style="OLC"><text>received by an individual—</text><subparagraph id="HC5633376C6CA43458FD4141A1CFC4FC5"><enum>(A)</enum><text display-inline="yes-display-inline">as a scholarship</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB4224126062847EAA564C2F9D9C3B1F5"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H8F97FCFD4A2C49E998620C5DF5025D96" style="OLC">
<subparagraph id="HADBACC0D1C2941438B0F29B6DFEEA87E"><enum>(B)</enum><text display-inline="yes-display-inline">as a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB7EFB8AE2A9A4500862D19700748E8CC"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection></section><section id="H6BEAA18E39094A6F9E851A49450A3011"><enum>104.</enum><header>Budgetary effects</header>
<subsection id="H3CDB811CC0E24671BF8F9FB7E0D304FF"><enum>(a)</enum><header>Statutory Pay-As-You-Go Scorecards</header><text display-inline="yes-display-inline">The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.</text>
</subsection><subsection id="H3DE6DFE5A82041999752DB9CFE5FD6F8"><enum>(b)</enum><header>Senate PAYGO Scorecards</header><text>The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for
purposes of section 201 of S. Con. Res. 21 (110th Congress).</text>
</subsection></section><enum>II</enum><header>Child Tax Credit Improvement Act</header>
<section id="HD0E54D28BF854A05BBC75BF780DF8756" section-type="subsequent-section"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote>Child Tax Credit Improvement Act of 2014</quote>.</text>
</section><section id="H0FC2ABE0C86946888C4E9D3BAF1F5FA8"><enum>202.</enum><header>Elimination of marriage penalty in child tax credit; inflation adjustment of credit amount and
phaseout thresholds in child tax credit</header>
<subsection id="HE323BCF2E23C4FAFB422187E9C923D27"><enum>(a)</enum><header>Elimination of marriage penalty</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(b)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>means—</quote> and all that follows and inserting <quote>means $75,000 (twice such amount in the case of a joint return).</quote>.</text>
</subsection><subsection id="HA9245167B22748D5BB15747C2E971451"><enum>(b)</enum><header>Inflation adjustment of credit amount and phaseout thresholds</header><text>Section 24 of such Code is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4EFA26451EE6436D959E8EF7FB782455" style="OLC">
<subsection id="H749124FBED5C46EEA4CBF917AAA7194A"><enum>(g)</enum><header>Inflation adjustment</header>
<paragraph id="H04068D6EF2EE4E57AA12E525D5760CB4"><enum>(1)</enum><header>In general</header><text>In the case of any taxable year beginning after 2014, the $1,000 amount in subsection (a) and the
$75,000 amount in subsection (b)(2) shall each be increased by an amount
equal to—</text>
<subparagraph id="HC86CD905C36E48F99F9C274B4340DA02"><enum>(A)</enum><text>such dollar amount, multiplied by</text>
</subparagraph><subparagraph id="H7D776A306EAF45E4BBDADCA3D72D6DB1"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting <quote>calendar year 2013</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subparagraph></paragraph><paragraph id="H0E9737F7F9184104987C2ADD7BA8DAE3"><enum>(2)</enum><header>Rounding</header><text>Any increase determined under paragraph (1) shall be rounded—</text>
<subparagraph id="H4E2134DB924540559FD11666A8C3FD53"><enum>(A)</enum><text>in the case of the $1,000 amount in subsection (a), to the nearest multiple of $50, and</text>
</subparagraph><subparagraph id="H2F3A9451930243BFA8B197A3B8092811"><enum>(B)</enum><text>in the case of the $75,000 amount in subsection (b)(2), to the nearest multiple of $1,000.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6DD7420CC8DD4F558E9C20D125718490"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2014.</text>
</subsection></section><section display-inline="no-display-inline" id="HA5D70769CB6A411BA9125274B23E2C03" section-type="subsequent-section"><enum>203.</enum><header>Social security number required to claim the refundable portion of the child tax credit</header>
<subsection id="H12CA1ABFBC4D4C7593822B145AEC3AEC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after paragraph (4) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1838A98B1EB941F08E572D6CE0F1B647" style="OLC">
<paragraph id="HE55653597DAC406DA86FB531496C2372"><enum>(5)</enum><header>Identification requirement with respect to taxpayer</header>
<subparagraph id="H5DD82C61E3A74295953BD223982201CC"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to any taxpayer for any taxable year unless the taxpayer includes the
taxpayer's social security number on the return of tax for such taxable
year.</text>
</subparagraph><subparagraph id="HF834BCA9AB0E46F19262893B654D1A75"><enum>(B)</enum><header>Joint returns</header><text display-inline="yes-display-inline">In the case of a joint return, the requirement of subparagraph (A) shall be treated as met if the
social security number of either spouse is included on such return.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H85BD56B040294CB2B1862D2234799185"><enum>(b)</enum><header>Omission treated as mathematical or clerical error</header><text display-inline="yes-display-inline">Subparagraph (I) of section 6213(g)(2) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3CF49EF57BE04686AFCF93A90408B15B" style="OLC">
<subparagraph id="H4D134C53729F42DB8D311CE6336C61DE"><enum>(I)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 24(d)(5) (relating to
refundable portion of child tax credit), or a correct TIN required under
section 24(e) (relating to child tax credit), to be included on a return,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA779A02D31A249C99C9EC632F1BC38B0"><enum>(c)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Subsection (e) of section 24 of such Code is amended by inserting <quote><header-in-text level="subsection" style="OLC">With Respect to Qualifying Children</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Identification Requirement</header-in-text></quote> in the heading thereof.</text>
</subsection><subsection id="H08C6002183A145CDBC51B791F85E9B2A"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section><section id="HC8377F4DFB3B49FF9AAD23EBB95261D3"><enum>204.</enum><header>Budgetary effects</header>
<subsection id="H79525F9E298F417A81D4A6F1A4221698"><enum>(a)</enum><header>Statutory Pay-As-You-Go Scorecards</header><text display-inline="yes-display-inline">The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.</text>
</subsection><subsection id="HC5DFEA4DDC184E18B659EADA6A2E7A69"><enum>(b)</enum><header>Senate PAYGO Scorecards</header><text>The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for
purposes of section 201 of S. Con. Res. 21 (110th Congress).</text>
</subsection></section>
Passed the House of Representatives July 24, 2014.Karen L. Haas,Clerk
July 29, 2014Read the second time and placed on the calendar