Uniform definition of child

(a)

Personal exemption

(1)

In general

Section 151 of the Internal Revenue Code of 1986 is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection:

(c)

Additional exemption for qualifying children

(1)

In general

An exemption of the exemption amount for each qualifying child. (2)

Qualifying child

For purposes of this section, the term qualifying child means, with respect to any taxpayer for any taxable year, an individual— (A)who bears a relationship to the taxpayer described in paragraph (3), (B)who has the same principal place of abode as the taxpayer for more than 1/2 of such taxable year, and (C)who meets the age requirements of paragraph (4).

An individual shall not be treated as failing to meet the requirements of subparagraph (B) by reason of time of birth or death or by reason of temporary absences or other circumstances specified in the regulations prescribed by the Secretary.

(3)

Relationship test

(A)

In general

For purposes of paragraph (2)(A), an individual bears a relationship to the taxpayer described in this paragraph if such individual is— (i)a son, daughter, stepson, or stepdaughter of the taxpayer or a descendant of any such relative, (ii)a brother, sister, stepbrother, or stepsister of the taxpayer or a descendant of any such relative, whom the taxpayer cares for as the taxpayer’s own child, or (iii)an eligible foster child of the taxpayer. (B)

Adopted child

For purposes of subparagraph (A), a child who is legally adopted, or who is placed with the taxpayer by an authorized placement agency for adoption by the taxpayer, shall be treated as a child by blood. (C)

Eligible foster child

For purposes of subparagraph (A), the term eligible foster child means an individual— (i)who is placed with the taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction, and (ii)whom the taxpayer cares for as the taxpayer’s own child. (4)

Age requirements

For purposes of paragraph (2)(C), an individual meets the requirements of this paragraph if such individual— (A)has not attained the age of 19 as of the close of the calendar year in which the taxable year of the taxpayer begins, (B)is a student who has not attained the age of 24 as of the close of such calendar year, or (C)is permanently and totally disabled (as defined in section 22(e)(3)) at any time during the taxable year. (5)

Special rules

(A)

Married dependents

An individual shall not be a qualifying child of a taxpayer if such individual makes a joint return with the individual’s spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins. (B)

Individuals who support themselves

An individual shall not be a qualifying child of a taxpayer if such individual provides over half of such individual’s own support for the calendar year in which the taxable year of the taxpayer begins. (C)

Only 1 exemption amount

An individual who is a qualifying child of any taxpayer shall not be treated as the dependent of any taxpayer for purposes of this part. (6)

Special rule relating to 2 or more claiming qualifying child

(A)

In general

Except as provided in paragraph (7), if an individual would (but for this paragraph) be a qualifying child of 2 or more taxpayers for taxable years beginning in the same calendar year, such individual shall be treated as the qualifying child of the taxpayer who is— (i)a parent of the individual, or (ii)if none of such taxpayers is a parent of the individual, the taxpayer with the highest adjusted gross income for such taxable year. (B)

Parents not filing joint returns

If an individual would (but for this paragraph) be a qualifying child of both parents of such individual and such parents do not file a joint return together, such child shall be treated as the qualifying child of— (i)the parent with whom the child resided for the longest period during the taxable year, or (ii)if the child resides with both parents for the same length of time during such taxable year, the parent with the highest adjusted gross income. (C)

Foster children

For purposes of this paragraph, the taxpayer shall be treated as a parent of any eligible foster child who has the same principal place of abode as the taxpayer for more than one-half of such taxable year. (7)

Special rule for certain pre-2006 instruments

(A)

In general

Notwithstanding paragraph (6), a child who has parents who— (i)are divorced or legally separated under a decree of divorce or separate maintenance, (ii)are separated under a written separation agreement, or (iii)live apart at all times during the last 6 months of the calendar year,

shall be treated as being the qualifying child of the noncustodial parent for a calendar year if the requirements of subparagraph (B) are met.

(B)

Requirements

For purposes of subparagraph (A), the requirements of this subparagraph are met if— (i)such child would, but for this paragraph, be the qualifying child of the custodial parent, and (ii)a qualified pre-2006 instrument between the parents is applicable to such child for the taxable year beginning in such calendar year.

In the case of an agreement executed before January 1, 1985, the requirements of this subparagraph are met only if, in addition to meeting the requirements of clauses (i) and (ii), the noncustodial parent provides at least $600 for the support of such child during such calendar year.

(C)

Qualified pre-2006 instrument

For purposes of this paragraph, the term qualified pre-2006 instrument means any written declaration referred to in subsection (e)(2) (as in effect on the day before the date of the enactment of the &short-title1;)— (i)which is executed before January 1, 2006, and (ii)which is not modified on or after such date in a modification which expressly provides that this subsection shall not apply to such declaration. (D)

Custodial parent and noncustodial parent

For purposes of this subsection— (i)

Custodial parent

The term custodial parent means the parent with whom a child shared the same principal place of abode for the greater portion of the calendar year. (ii)

Noncustodial parent

The term noncustodial parent means the parent who is not the custodial parent. (E)

Special rules for support

For purposes of this subsection— (i)amounts expended for the support of a child or children shall be treated as received from the noncustodial parent to the extent that such parent provided amounts for such support, and (ii)in the case of the remarriage of a parent, support of a child received from the parent’s spouse shall be treated as received from the parent.

(2)

Conforming amendments

(A)Section 152 of such Code is amended by striking subsection (e) (relating to support test in case of child of divorced parents, etc.). (B)Paragraph (6) of section 1(f) of such Code is amended— (i)in subparagraph (A) by striking 151(d)(4) and inserting 151(e)(4), and (ii)in subparagraph (B) by striking 151(d)(3)(A) and inserting 151(e)(3)(A). (C)Paragraph (5) of section 21(e) of such Code is amended— (i)by striking paragraph (2) or (4) of section 152(e) and inserting section 151(c)(7), and (ii)by striking section 152(e)(1) and inserting section 151(c)(7). (D)Sections 21(e)(6) and 129(c) of such Code are each amended— (i)by striking 151(c) and inserting 151(d), and (ii)by striking 151(c)(3) and inserting 151(d)(3). (E)Sections 25B(c)(2)(B), 32(c)(3)(C)(ii), 152(d)(2), and 2032A(c)(7)(D) of such Code are each amended by striking 151(c)(4) and inserting 151(d)(4). (F)Sections 72(t)(7)(A)(iii) and 132(h)(2)(B) of such Code are each amended by striking 151(c)(3) and inserting 151(d)(3). (G)Clause (i) of section 642(b)(2)(C) of such Code is amended— (i)by striking 151(d) and inserting 151(e), and (ii)by striking 151(d)(3)(C)(iii) and inserting 151(e)(3)(C)(iii). (H)Paragraph (1) of section 3402(f) of such Code is amended— (i)in subparagraph (A) by striking 151(d)(2) and inserting 151(e)(2), and (ii)in subparagraph (C) by striking 151(c) and inserting 151(d). (I)Subparagraph (B) of section 3402(r)(2) of such Code is amended by striking 151(d) and inserting 151(e). (J)Paragraph (1) of section 6012(a) of such Code is amended— (i)in subparagraph (A)— (I)by striking 151(c) and inserting 151(d), and (ii)in subparagraph (D)(ii)— (I)by striking 151(d) and inserting 151(e), and (II)by striking 151(d)(2) and inserting 151(e)(2). (K)The last sentence of section 6013(b)(3)(A) of such Code is amended by striking 151(d) and inserting 151(e). (L)Section 7703(b)(1) of such Code is amended by striking 151(c)(3) and inserting 151(c)(2). (b)

Application of uniform definition to dependent care credit

(1)

In general

Section 21(b)(1)(A) of such Code is amended to read as follows:

(A)a qualifying child of the taxpayer (as defined in section 151(c)) who has not attained age 13,

(2)

Repeal of maintenance of household test

Section 21(a)(1) of such Code is amended by striking who maintains a household which includes as a member and inserting with respect to whom there are. (c)

Application of uniform definition to child tax credit

Section 24(c)(1) of such Code is amended to read as follows:

(1)

In general

The term qualifying child means a qualifying child of the taxpayer (as defined in section 151(c)) who has not attained age 17 as of the close of the calendar year in which the taxable year of the taxpayer begins.

(d)

Application of uniform definition to earned income credit

(1)

In general

Paragraph (3) of section 32(c) of such Code is amended to read as follows:

(3)

Qualifying child

(A)

In general

The term qualifying child means a qualifying child of the taxpayer (as defined in section 151(c)). (B)

Place of abode

For purposes of subparagraph (A), the requirements of section 151(c)(2)(B) shall be met only if the principal place of abode is in the United States. (C)

Identification requirements

(i)

In general

A qualifying child shall not be taken into account under subsection (b) unless the taxpayer includes the name, age, and TIN of the qualifying child on the return of tax for the taxable year. (ii)

Other methods

The Secretary may prescribe other methods for providing the information described in clause (i).

(2)

Conforming amendments

(A)Section 32(c)(1) of such Code is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), (F), and (G) as subparagraphs (C), (D), (E), and (F), respectively. (B)Section 32(c)(4) of such Code is amended by striking (3)(E) and inserting (3)(B). (C)Section 32(m) of such Code is amended by striking subsections (c)(1)(F) and inserting subsections (c)(1)(E). (e)

Application of uniform definition to credit for health insurance costs of eligible individuals

Section 35(d)(1)(B) of such Code is amended to read as follows:

(B)a qualifying child of the taxpayer (as defined in section 151(c)).

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2004. (g)

Regulations

Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall issue regulations or other guidance defining place of abode and principal place of abode for purposes of sections 151(c), 21, 24, 32, and 35 of the Internal Revenue Code of 1986, as amended by this section.