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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle A. Income Taxes |
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Chapter 1. NORMAL TAXES AND SURTAXES |
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SubChapter A. Determination of Tax Liability |
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Part IV. CREDITS AGAINST TAX |
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SubPart C. Refundable Credits |
§ 32. Earned income
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(a) Allowance of credit (1) In general In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer’s earned income for the taxable year as does not exceed the earned income amount.
(2) Limitation The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the excess (if any) of— (A) the credit percentage of the earned income amount, over (B) the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount. (b) Percentages and amounts For purposes of subsection (a)— (1) Percentages The credit percentage and the phaseout percentage shall be determined as follows: (A) In general In the case of taxable years beginning after 1995:
In the case of an eligible individual with:
The credit percentage is:
The
phaseout
percentage
is:
1 qualifying child
34
15.98
2 or more qualifying children
40
21.06
No qualifying children
7.65
7.65
(B) Transitional percentages for 1995 In the case of taxable years beginning in 1995:
In the case of an eligible individual with:
The credit percentage is:
The
phaseout
percentage
is:
1 qualifying child
34
15.98
2 or more qualifying children
36
20.22
No qualifying children
7.65
7.65
(C) Transitional percentages for 1994 In the case of a taxable year beginning in 1994:
In the case of an eligible individual with:
The credit percentage is:
The
phaseout
percentage
is:
1 qualifying child
26.3
15.98
2 or more qualifying children
30
17.68
No qualifying children
7.65
7.65
(2) Amounts (A) In general Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined as follows:
In the case of an eligible individual with:
The earned income amount is:
The
phaseout
amount is:
1 qualifying child
$6,330
$11,610
2 or more qualifying children
$8,890
$11,610
No qualifying children
$4,220
$5,280
(B) Joint returns In the case of a joint return filed by an eligible individual and such individual’s spouse, the phaseout amount determined under subparagraph (A) shall be increased by— (i) $1,000 in the case of taxable years beginning in 2002, 2003, and 2004, (ii) $2,000 in the case of taxable years beginning in 2005, 2006, and 2007, and (iii) $3,000 in the case of taxable years beginning after 2007. (3) Special rules for for shall not be treated as income (and shall not be taken into account in determining resources for the month of its receipt and the following month). (m) Identification numbers Solely for purposes of subsections (c)(1)(E) and (c)(3)(D), a taxpayer identification number means a social security number issued to an individual by the Social Security Administration (other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act).
Prospective Amendment
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
References In Text
The Social Security Act, referred to in subsecs. (c)(2)(B)(v) and (m), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV of the Act is classified generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. Sections 205(c)(2)(B)(i) and 407(d)(4), (7) of the Act are classified to sections 405(c)(2)(B)(i) and 607(d)(4), (7), respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Section 3507, referred to in subsec. (l), was repealed by Pub. L. 111–226, title II, § 219(a)(1),
The United States Housing Act of 1937, referred to in subsec. (l)(1), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, § 201(a),
The Housing Act of 1949, referred to in subsec. (l)(2), is act July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the Act is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of Title 42 and Tables.
Section 101 of the Housing and Urban Development Act of 1965, referred to in subsec. (l)(3), is section 101 of Pub. L. 89–117, title I,
Sections 221(d)(3), 235, and 236 of the National Housing Act, referred to in subsec. (l)(4), are classified to sections 1715l(d)(3), 1715z, and 1715z–1, respectively, of Title 12.
The Food and Nutrition Act of 2008, referred to in subsec. (l)(5), is Pub. L. 88–525,
Codification
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Prior Provisions
A prior section 32 was renumbered section 33 of this title.
Amendments
2013—Subsec. (b)(3). Pub. L. 112–240 substituted “for certain years” for “2009, 2010, 2011, and 2012” in heading and “after 2008 and before 2018” for “in 2009, 2010, 2011, or 2012” in introductory provisions.
2010—Subsec. (b)(3). Pub. L. 111–312 substituted “2009, 2010, 2011, and 2012” for “2009 and 2010” in heading and “, 2010, 2011, or 2012” for “or 2010” in introductory provisions.
Subsec. (g). Pub. L. 111–226 struck out subsec. (g). Text read as follows:
“(1) Recapture of excess advance payments.—If any payment is made to the individual by an employer under section 3507 during any calendar year, then the tax imposed by this chapter for the individual’s last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.
“(2) Reconciliation of payments advanced and credit allowed.—Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowable under this part.”
2009—Subsec. (b)(3). Pub. L. 111–5 added par. (3).
2008—Subsec. (c)(2)(B)(vi). Pub. L. 110–245 amended cl. (vi) generally. Prior to amendment, cl. (vi) read as follows: “in the case of any taxable year ending—
“(I) after the date of the enactment of this clause, and
“(II) before
a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.”
Subsec. (l)(5). Pub. L. 110–246, § 4002(b)(1)(B), (2)(O), substituted “Food and Nutrition Act of 2008” for “Food Stamp Act of 1977”.
2006—Subsec. (c)(2)(B)(vi)(II). Pub. L. 109–432 substituted “2008” for “2007”.
2005—Subsec. (c)(2)(B)(vi)(II). Pub. L. 109–135 substituted “2007” for “2006”.
2004—Subsec. (c)(1)(C) to (G). Pub. L. 108–311, § 205(b)(1), redesignated subpars. (D) to (G) as (C) to (F), respectively, and struck out former subpar. (C) which related to 2 or more claiming qualifying child.
Subsec. (c)(2)(B)(vi). Pub. L. 108–311, § 104(b), added cl. (vi).
Subsec. (c)(3). Pub. L. 108–311, § 205(a), amended par. (3) generally, substituting subpars. (A) to (D) for former subpars. (A) to (E), relating to qualifying child in general, relationship test, age requirements, identification requirements, and place of abode requirements.
Subsec. (c)(4). Pub. L. 108–311, § 205(b)(2), substituted “(3)(C)” for “(3)(E)”.
Subsec. (m). Pub. L. 108–311, § 205(b)(3), substituted “(c)(1)(E)” for “(c)(1)(F)”.
2002—Subsec. (g)(2). Pub. L. 107–147 substituted “part” for “subpart”.
2001—Subsec. (a)(2)(B). Pub. L. 107–16, § 303(d)(1), struck out “modified” before “adjusted gross income”.
Subsec. (b)(2). Pub. L. 107–16, § 303(a)(1), reenacted par. heading without change, designated existing provisions as subpar. (A), inserted subpar. heading, substituted “Subject to subparagraph (B), the earned” for “The earned”, and added subpar. (B).
Subsec. (c)(1)(C). Pub. L. 107–16, § 303(f), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “If 2 or more individuals would (but for this subparagraph and after application of subparagraph (B)) be treated as eligible individuals with respect to the same qualifying child for taxable years beginning in the same calendar year, only the individual with the highest modified adjusted gross income for such taxable years shall be treated as an eligible individual with respect to such qualifying child.”
Subsec. (c)(2)(A)(i). Pub. L. 107–16, § 303(b), inserted “, but only if such amounts are includible in gross income for the taxable year” after “other employee compensation”.
Subsec. (c)(3)(A)(ii). Pub. L. 107–16, § 303(e)(2)(B), struck out “except as provided in subparagraph (B)(iii),” before “who has”.
Subsec. (c)(3)(B)(i). Pub. L. 107–16, § 303(e)(1), reenacted heading, introductory provisions, and subcl. (III) of cl. (i) without change and amended subcls. (I) and (II) generally. Prior to amendment, subcls. (I) and (II) read as follows:
“(I) a son or daughter of the taxpayer, or a descendant of either,
“(II) a stepson or stepdaughter of the taxpayer, or.”
Subsec. (c)(3)(B)(iii). Pub. L. 107–16, § 303(e)(2)(A), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of clause (i)(III), the term ‘eligible foster child’ means an individual not described in clause (i)(I) or (II) who—
“(I) is a brother, sister, stepbrother, or stepsister of the taxpayer (or a descendant of any such relative) or is placed with the taxpayer by an authorized placement agency,
“(II) the taxpayer cares for as the taxpayer’s own child, and
“(III) has the same principal place of abode as the taxpayer for the taxpayer’s entire taxable year.”
Subsec. (c)(3)(E). Pub. L. 107–16, § 303(h), substituted “subparagraph (A)(ii)” for “subparagraphs (A)(ii) and (B)(iii)(II)”.
Subsec. (c)(5). Pub. L. 107–16, § 303(d)(2)(A), struck out heading and text of par. (5), which defined “modified adjusted gross income” as meaning adjusted gross income without regard to certain described amounts and increased by certain described amounts.
Subsec. (f)(2)(B). Pub. L. 107–16, § 303(d)(2)(B), struck out “modified” before “adjusted gross income” in two places.
Subsec. (h). Pub. L. 107–16, § 303(c), struck out heading and text of subsec. (h). Text read as follows: “The credit allowed under this section for the taxable year shall be reduced by the amount of tax imposed by section 55 (relating to alternative minimum tax) with respect to such taxpayer for such taxable year.”
Subsec. (j)(1)(B). Pub. L. 107–16, § 303(a)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1995’ for ‘calendar year 1992’ in subparagraph (B) thereof.”
Subsec. (j)(2)(A). Pub. L. 107–16, § 303(a)(3), substituted “subsection (b)(2)(A) (after being increased under subparagraph (B) thereof)” for “subsection (b)(2)”.
Subsec. (n). Pub. L. 107–16, § 201(c)(3), struck out heading and text of subsec. (n), which had increased credit allowable under this section in the case of a taxpayer with respect to whom a child tax credit is allowed under section 24(a), described amount of increase, and set forth provisions relating to coordination with other credits allowable under this part.
1999—Subsec. (c)(3)(B)(iii). Pub. L. 106–170 added subcl. (I) and redesignated former subcls. (I) and (II) as (II) and (III), respectively.
1998—Subsec. (c)(1)(F). Pub. L. 105–206, § 6021(a), added introductory provisions and struck out former introductory provisions which read as follows: “The term ‘eligible individual’ does not include any individual who does not include on the return of tax for the taxable year—”.
Subsec. (c)(1)(G). Pub. L. 105–206, § 6021(b)(2), added subpar. (G).
Subsec. (c)(2)(B)(v). Pub. L. 105–206, § 6010(p)(2), inserted “shall be taken into account” before “, but only”.
Subsec. (c)(3)(A)(ii) to (iv). Pub. L. 105–206, § 6021(b)(3), inserted “and” at end of cl. (ii), substituted a period for “, and” at end of cl. (iii), and struck out cl. (iv) which read as follows: “with respect to whom the taxpayer meets the identification requirements of subparagraph (D)”.
Subsec. (c)(3)(D)(i). Pub. L. 105–206, § 6021(b)(1), reenacted heading without change and amended text of cl. (i) generally. Prior to amendment, text read as follows: “The requirements of this subparagraph are met if the taxpayer includes the name, age, and TIN of each qualifying child (without regard to this subparagraph) on the return of tax for the taxable year.”
Subsec. (c)(5)(A). Pub. L. 105–206, § 6010(p)(1)(A), inserted “and increased by the amounts described in subparagraph (C)” before period at end.
Subsec. (c)(5)(B). Pub. L. 105–206, § 6010(p)(1)(B), (C), inserted “or” at end of cl. (iii) and substituted cl. (iv)(III) and concluding provisions for former cls. (iv)(III), (v), (vi), and concluding provisions which read as follows:
“(III) other trades or businesses
“(v) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and
“(vi) amounts received as a pension or annuity, and any distributions or payments received from an individual retirement plan, by the taxpayer during the taxable year to the extent not included in gross income.
For purposes of clause (iv), there shall not be taken into account items which are attributable to a trade or business which consists of the performance of services by the taxpayer as an employee. Clause (vi) shall not include any amount which is not includible in gross income by reason of section 402(c), 403(a)(4), 403(b), 408(d)(3), (4), or (5), or 457(e)(10).”
Subsec. (c)(5)(C). Pub. L. 105–206, § 6010(p)(1)(C), added subpar. (C).
Subsecs. (m), (n). Pub. L. 105–206, § 6003(b), redesignated subsec. (m), relating to supplemental child credit, as (n) and amended text generally. Prior to amendment, text read as follows:
“(1) In general.—In the case of a taxpayer with respect to whom a credit is allowed under section 24 for the taxable year, there shall be allowed as a credit under this section an amount equal to the supplemental child credit (if any) determined for such taxpayer for such taxable year under paragraph (2). Such credit shall be in addition to the credit allowed under subsection (a).
“(2) Supplemental child credit.—For purposes of this subsection, the supplemental child credit is an amount equal to the excess (if any) of—
“(A) the amount determined under section 24(d)(1)(A), over
“(B) the amount determined under section 24(d)(1)(B).
The amounts referred to in subparagraphs (A) and (B) shall be determined as if section 24(d) applied to all taxpayers.
“(3) Coordination with section 24.—The amount of the credit under section 24 shall be reduced by the amount of the credit allowed under this subsection.”
1997—Subsec. (c)(2)(B)(v). Pub. L. 105–34, § 1085(c), added cl. (v).
Subsec. (c)(4). Pub. L. 105–34, § 312(d)(2), struck out “(as defined in section 1034(h)(3)” after “serving on extended active duty” and inserted at end “For purposes of the preceding sentence, the term ‘extended active duty’ means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.”
Subsec. (c)(5)(B). Pub. L. 105–34, § 1085(d)(4), inserted at end of concluding provisions “Clause (vi) shall not include any amount which is not includible in gross income by reason of section 402(c), 403(a)(4), 403(b), 408(d)(3), (4), or (5), or 457(e)(10).”
Subsec. (c)(5)(B)(iv). Pub. L. 105–34, § 1085(b), substituted “75 percent” for “50 percent” in introductory provisions.
Subsec. (c)(5)(B)(v), (vi). Pub. L. 105–34, § 1085(d)(1)–(3), added cls. (v) and (vi).
Subsec. (k). Pub. L. 105–34, § 1085(a)(1), added subsec. (k). Former subsec. (k) redesignated (l).
Subsec. (l). Pub. L. 105–34, § 1085(a)(1), redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 105–34, § 1085(a)(1), redesignated subsec. (l) as (m) relating to identification numbers.
Pub. L. 105–34, § 101(b), added subsec. (m) relating to supplemental child credit.
1996—Subsec. (a)(2)(B). Pub. L. 104–193, § 910(a), inserted “modified” before “adjusted gross income”.
Subsec. (b)(2). Pub. L. 104–193, § 909(a)(3), reenacted heading without change and amended text generally. Prior to amendment, text consisted of subpars. (A) and (B) setting out tables for determining the earned income amount for taxable years beginning after 1994 and for taxable years beginning in 1994.
Subsec. (c)(1)(C). Pub. L. 104–193, § 910(a), inserted “modified” before “adjusted gross income”.
Subsec. (c)(1)(F). Pub. L. 104–193, § 451(a), added subpar. (F).
Subsec. (c)(5). Pub. L. 104–193, § 910(b), added par. (5).
Subsec. (f)(2)(B). Pub. L. 104–193, § 910(a), inserted “modified” before “adjusted gross income” in two places.
Subsec. (i)(1). Pub. L. 104–193, § 909(a)(1), substituted “$2,200” for “$2,350”.
Subsec. (i)(2). Pub. L. 104–193, § 909(b), added subpars. (D) and (E) and concluding provisions.
Subsec. (j). Pub. L. 104–193, § 909(a)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows:
“(1) In general.—In the case of any taxable year beginning after 1994, each dollar amount contained in subsection (b)(2)(A) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3), for the calendar year in which the taxable year begins, by substituting ‘calendar year 1993’ for ‘calendar year 1992’.
“(2) Rounding.—If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10 (or, if such dollar amount is a multiple of $5, such dollar amount shall be increased to the next higher multiple of $10).”
Subsec. (l). Pub. L. 104–193, § 451(b), added subsec. (l).
1995—Subsecs. (i) to (k). Pub. L. 104–7 added subsec. (i) and redesignated former subsecs. (i) and (j) as (j) and (k), respectively.
1994—Subsec. (c)(1)(E). Pub. L. 103–465, § 722(a), added subpar. (E).
Subsec. (c)(2)(B)(iv). Pub. L. 103–465, § 723(a), added cl. (iv).
Subsec. (c)(3)(D)(i). Pub. L. 103–465, § 742(a), amended heading and text of cl. (i) generally. Prior to amendment, text read as follows: “The requirements of this subparagraph are met if—
“(I) the taxpayer includes the name and age of each qualifying child (without regard to this subparagraph) on the return of tax for the taxable year, and
“(II) in the case of an individual who has attained the age of 1 year before the close of the taxpayer’s taxable year, the taxpayer includes the taxpayer identification number of such individual on such return of tax for such taxable year.”
Subsec. (c)(4). Pub. L. 103–465, § 721(a), added par. (4).
1993—Subsec. (a). Pub. L. 103–66, § 13131(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of—
“(1) the basic earned income credit, and
“(2) the health insurance credit.”
Subsec. (b). Pub. L. 103–66, § 13131(a), substituted “Percentages and amounts” for “Computation of credit” in heading and amended text generally. Prior to amendment, text related to method of computation of both earned income credit and health insurance credit.
Subsec. (c)(1)(A). Pub. L. 103–66, § 13131(b), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘eligible individual’ means any individual who has a qualifying child for the taxable year.”
Subsec. (c)(3)(D)(ii). Pub. L. 103–66, § 13131(d)(1), redesignated cl. (iii) as (ii), substituted “clause (i)” for “clause (i) or (ii)”, and struck out heading and text of former cl. (ii). Text read as follows: “In the case of any taxpayer with respect to which the health insurance credit is allowed under subsection (a)(2), the Secretary may require a taxpayer to include an insurance policy number or other adequate evidence of insurance in addition to any information required to be included in clause (i).”
Subsec. (i)(1). Pub. L. 103–66, § 13131(c)(1), added par. (1) and struck out text and heading of former par. (1). Text read as follows: “In the case of any taxable year beginning after the applicable calendar year, each dollar amount referred to in paragraph (2)(B) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3), for the calendar year in which the taxable year begins, by substituting ‘calendar year 1984’ for ‘calendar year 1989’ in subparagraph (B) thereof.”
Subsec. (i)(2), (3). Pub. L. 103–66, § 13131(c), redesignated par. (3) as (2) and struck out former par. (2) which defined terms for purposes of the inflation adjustment in par. (1).
1990—Subsec. (a). Pub. L. 101–508, § 11111(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “In the case of an eligible individual, there is allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 14 percent of so much of the earned income for the taxable year as does not exceed $5,714.”
Subsec. (b). Pub. L. 101–508, § 11111(a), substituted heading for one which read “Limitation” and amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of—
“(1) the maximum credit allowable under subsection (a) to any taxpayer, over
“(2) 10 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $9,000.
In the case of any taxable year beginning in 1987, paragraph (2) shall be applied by substituting ‘$6,500’ for ‘$9,000’.”
Subsec. (c). Pub. L. 101–508, § 11111(a), amended subsec. (c) generally, inserting “and special rules” in heading and substituting present provisions for provisions defining “eligible individual” and “earned income”.
Subsec. (i)(1)(B). Pub. L. 101–508, § 11101(d)(1)(B), substituted “1989” for “1987”.
Subsec. (i)(2)(A). Pub. L. 101–508, § 11111(e)(1), (2), substituted “clause (i) of subparagraph (B)” for “clause (i) or (ii) of subparagraph (B)” in cl. (i) and “clause (ii)” for “clause (iii)” in cl. (ii).
Subsec. (i)(2)(B). Pub. L. 101–508, § 11111(e)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “The dollar amounts referred to in this subparagraph are—
“(i) the $5,714 amount contained in subsection (a),
“(ii) the $6,500 amount contained in the last sentence of subsection (b), and
“(iii) the $9,000 amount contained in subsection (b)(2).”
Subsec. (j). Pub. L. 101–508, § 11111(b), added subsec. (j).
1988—Subsec. (h). Pub. L. 100–647, § 1007(g)(12), struck out “for taxpayers other than corporations” after “alternative minimum tax”.
Subsec. (i)(3). Pub. L. 100–647, § 1001(c), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “If any increase determined under paragraph (1) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or, if such increase is a multiple of $5, such increase shall be increased to the next higher multiple of $10).”
1986—Subsec. (a). Pub. L. 99–514, § 111(a), substituted “14 percent” for “11 percent” and “$5,714” for “$5,000”.
Subsec. (b). Pub. L. 99–514, § 111(b), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of—
“(1) $550, over
“(2) 122⁄9 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $6,500.”
Subsec. (c)(1)(A)(i). Pub. L. 99–514, § 1301(j)(8), substituted “section 7703” for “section 143”.
Pub. L. 99–514, § 104(b)(1)(B), substituted “section 151(c)(3)” for “section 151(e)(3)”.
Subsec. (c)(1)(C). Pub. L. 99–514, § 1272(d)(4), struck out “or 931” after “911” in heading, and amended text generally. Prior to amendment, text read as follows: “The term ‘eligible individual’ does not include an individual who, for the taxable year, claims the benefits of—
“(i) section 911 (relating to citizens or residents of the United States living abroad),
“(ii) section 931 (relating to income from sources within possessions of the United States).”
Subsec. (d). Pub. L. 99–514, § 1301(j)(8), substituted “section 7703” for “section 143”.
Subsec. (f)(2)(A), (B). Pub. L. 99–514, § 111(d)(1), added subpars. (A) and (B) and struck out former subpars. (A) and (B) which read as follows:
“(A) for earned income between $0 and $11,000, and
“(B) for adjusted gross income between $6,500 and $11,000.”
Subsec. (i). Pub. L. 99–514, § 111(c), added subsec. (i).
1984—Pub. L. 98–369, § 471(c), renumbered section 43 of this title as this section.
Subsec. (a). Pub. L. 98–369, § 1042(a), substituted “11 percent” for “10 percent”.
Subsec. (b)(1). Pub. L. 98–369, § 1042(d)(1), substituted “$550” for “$500”.
Subsec. (b)(2). Pub. L. 98–369, § 1042(b), substituted “122⁄9 percent” for “12.5 percent” and “$6,500” for “$6,000”.
Subsec. (c)(1)(A)(i). Pub. L. 98–369, § 423(c)(3)(A), inserted “or would be so entitled but for paragraph (2) or (4) of section 152(e)”.
Subsec. (c)(1)(B). Pub. L. 98–369, § 423(c)(3)(B), substituted “as the individual for more than one-half of the taxable year” for “as the individual”.
Subsec. (f)(2)(A). Pub. L. 98–369, § 1042(d)(2), substituted “between $0 and $11,000” for “between $0 and $10,000”.
Subsec. (f)(2)(B). Pub. L. 98–369, § 1042(d)(2), substituted “between $6,500 and $11,000” for “between $6,000 and $10,000”.
Subsec. (h). Pub. L. 98–369, § 1042(c), added subsec. (h).
1983—Subsec. (c)(2)(A)(ii). Pub. L. 98–21 inserted before period at end “, but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f)”.
1981—Subsec. (c)(1)(C). Pub. L. 97–34 struck out reference to section 913 in heading, substituted “relating to citizens or residents of the United States living abroad” for “relating to income earned by individuals in certain camps outside the United States” in cl. (i), struck out cl. (ii) which made reference to section 913, and redesignated cl. (iii) as (ii).
1980—Subsec. (c)(1)(C). Pub. L. 96–222, § 101(a)(1), in heading substituted “who claims benefit of section 911, 913, or 931” for “entitled to exclude income under section 911” and in text substituted “claims the benefits of” for “is entitled to exclude any amounts from gross income under” and inserted reference to section 913 (relating to deduction for certain expenses of living abroad).
Subsecs. (g), (h). Pub. L. 96–222, § 101(a)(2)(E), redesignated subsec. (h) as (g).
1978—Subsec. (a). Pub. L. 95–600, § 104(a), substituted “subtitle” for “chapter” and “$5,000” for “$4,000”.
Subsec. (b). Pub. L. 95–600, § 104(b), substituted provision limiting the allowable credit to an amount not to exceed the excess of $500 over 12.5 percent of so much of the adjusted gross income for the taxable year as exceeds $6,000 for provision limiting the allowable credit to an amount reduced by 10 percent of so much of the adjusted gross income for the taxable year as exceeds $4,000.
Subsec. (c)(1). Pub. L. 95–600, § 104(e), amended par. (1) generally, substituting in definition of eligible individual one who is married and is entitled to a deduction under section 151 for a child, provided the child has the same principal abode as the individual and the abode is in the United States, is a surviving spouse, or is a head of household, provided the household is in the United States for one who maintains a household in the United States which is the principal abode of that individual and a child of that individual who meets the requirements of section 151(e)(1)(B) or a child of that individual who is disabled within the meaning of section 72(m)(7) and to whom the individual is entitled to claim a deduction under section 151.
Subsec. (c)(1)(C). Pub. L. 95–615, § 202(f)(5), which directed the amendment of subsec. (c)(1)(B) by substituting “(relating to income earned by employees in certain camps)” for “(relating to earned income from sources without the United States)”, was executed to subsec. (c)(1)(C) to reflect the probable intent of Congress and the general amendment of subsec. (c)(1) by Pub. L. 95–600 which enacted provisions formerly contained in subsec. (c)(1)(B) in subsec. (c)(1)(C).
Subsec. (c)(2)(B). Pub. L. 95–600, § 104(d), redesignated cls. (ii) to (iv) as (i) to (iii), respectively. Former cl. (i), which provided that amounts be taken into account only if includible in the gross income of the taxpayer for the taxable year, was struck out.
Subsec. (f). Pub. L. 95–600, § 104(c), added subsec. (f).
Subsec. (h). Pub. L. 95–600, § 105(a), added subsec. (h).
1976—Subsec. (a). Pub. L. 94–455, § 401(c)(1)(B), substituted “is allowed” for “shall be allowed” and struck out provisions relating to the application of the six-month rule.
Subsec. (b). Pub. L. 94–455, § 401(c)(1)(B), struck out provisions relating to the application of the six-month rule.
Subsec. (c)(1)(A). Pub. L. 94–455, § 401(c)(2), among other changes, substituted “section 44A(f)(1)” for “section 214(b)(3)” and “if such child meets the requirements of section 151(e)(1)(B)” for “with respect to whom he is entitled to claim a deduction under section 151(e)(1)(B)” and inserted reference to a child of that individual who is disabled (within the meaning of section 72(m)(7)) and with respect to whom that individual is entitled to claim a deduction under section 151.
1975—Subsec. (a). Pub. L. 94–164 designated existing provisions as par. (1) and added par. (2).
Subsec. (b). Pub. L. 94–164 designated existing provisions as par. (1) and added par. (2).
Effective Date Of Amendment
Amendment by Pub. L. 112–240 applicable to taxable years beginning after
Amendment by Pub. L. 111–312 applicable to taxable years beginning after
Pub. L. 111–226, title II, § 219(c),
Pub. L. 111–5, div. B, title I, § 1002(b),
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective
Amendment by section 4002(b)(1)(B), (2)(O) of Pub. L. 110–246 effective
Pub. L. 110–245, title I, § 102(d),
Pub. L. 109–432, div. A, title I, § 106(b),
Pub. L. 109–135, title III, § 302(b),
Pub. L. 110–245, title I, § 102(c),
Pub. L. 108–311, title I, § 104(c)(2),
Amendment by section 205 of Pub. L. 108–311 applicable to taxable years beginning after
Pub. L. 107–147, title IV, § 416(a)(2),
Amendment by section 201(c)(3) of Pub. L. 107–16 applicable to taxable years beginning after
Pub. L. 107–16, title III, § 303(i),
Pub. L. 106–170, title IV, § 412(b),
Pub. L. 105–206, title VI, § 6021(c),
Amendment by sections 6003(b) and 6010(p)(1), (2) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Amendment by section 101(b) of Pub. L. 105–34 applicable to taxable years beginning after
Amendment by section 312(d)(2) of Pub. L. 105–34 applicable to sales and exchanges after
Pub. L. 105–34, title X, § 1085(e),
Pub. L. 104–193, title IV, § 451(d),
Pub. L. 104–193, title IX, § 909(c),
Pub. L. 104–193, title IX, § 910(c),
Pub. L. 104–7, § 4(b),
Pub. L. 103–465, title VII, § 721(d)(1),
Pub. L. 103–465, title VII, § 722(b),
Pub. L. 103–465, title VII, § 723(b),
Pub. L. 103–465, title VII, § 742(c),
Pub. L. 103–66, title XIII, § 13131(e),
Amendment by section 11101(d)(1)(B) of Pub. L. 101–508 applicable to taxable years beginning after
Pub. L. 101–508, title XI, § 11111(f),
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by sections 104(b)(1)(B) and 111(a)–(d)(1) of Pub. L. 99–514 applicable to taxable years beginning after
Amendment by section 1272(d)(4) of Pub. L. 99–514 applicable to taxable years beginning after
Amendment by section 1301(j)(8) of Pub. L. 99–514 applicable to bonds issued after
Amendment by section 423(c)(3) of Pub. L. 98–369 applicable to taxable years beginning after
Pub. L. 98–369, div. A, title X, § 1042(e),
Amendment by Pub. L. 98–21 applicable to taxable years beginning after
Amendment by Pub. L. 97–34 applicable with respect to taxable years beginning after
Pub. L. 96–222, title I, § 101(b)(1)(A),
Pub. L. 96–222, title II, § 201,
Pub. L. 95–600, title I, § 104(f),
Pub. L. 95–600, title I, § 105(g)(1),
Amendment by Pub. L. 95–615 applicable to taxable years beginning after
Pub. L. 94–455, title IV, § 401(e),
Pub. L. 94–164, § 2(g),
Pub. L. 94–12, title II, § 209(b),
Miscellaneous
Pub. L. 108–199, div. F, title II, § 206,
Secretary of the Treasury, or Secretary’s delegate, to establish taxpayer awareness program to inform taxpaying public of availability of earned income credit and child health insurance under this section, see section 11114 of Pub. L. 101–508, set out as a note under section 21 of this title.
Pub. L. 99–514, title I, § 111(e),
Pub. L. 94–164, § 2(d),
[Pub. L. 95–600, title I, § 105(g)(3),