110 HR 4085 IH: Military Service Tax Relief Act of U.S. House of Representatives 2007-11-06 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.

I 110th CONGRESS 1st Session H. R. 4085 IN THE HOUSE OF REPRESENTATIVES November 6, 2007 Mr. Klein of Florida introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to make permanent the penalty-free distributions from retirement plans to individuals called to active duty and the election to include combat pay as earned income for purposes of the earned income tax credit.

1.

Short title

This Act may be cited as the Military Service Tax Relief Act of 2007.

2.

Distributions from retirement plans to individuals called to active duty

(a)

In general

Clause (iv) of section 72(t)(2)(G) is amended by striking , and before December 31, 2007. (b)

Effective date

The amendment made by this section shall apply to individuals ordered or called to active duty on or after December 31, 2007.

3.

Election to include combat pay as earned income for purposes of earned income tax credit

(a)

In general

Clause (vi) of section 32(c)(2)(B) (defining earned income) is amended to read as follows: (vi)a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income. . (b)

Provision not subject to EGTRRA sunset

Section 105 of the Working Families Tax Relief Act of 2004 (relating to application of EGTRRA sunset to this title) shall not apply to section 104(b) of such Act. (c)

Effective date

The amendment made by this section shall apply to taxable years ending after December 31, 2007.