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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 A. Nonrefundable Personal Credits |
§ 24. Child tax credit
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(a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each qualifying child of the taxpayer for which the taxpayer is allowed a deduction under section 151 an amount equal to $1,000.
(b) Limitations (1) Limitation based on adjusted gross income The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds the threshold amount. For purposes of the preceding sentence, the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.
(2) Threshold amount For purposes of paragraph (1), the term “threshold amount” means— (A) $110,000 in the case of a joint return, (B) $75,000 in the case of an individual who is not married, and (C) $55,000 in the case of a married individual filing a separate return. For purposes of this paragraph, marital status shall be determined under section 7703. (c) Qualifying child For purposes of this section— (1) In general The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17.
(2) Exception for certain noncitizens The term “qualifying child” shall not include any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows “resident of the United States”.
(d) Portion of credit refundable (1) In general The aggregate credits allowed to a taxpayer under subpart C shall be increased by the lesser of— (A) the credit which would be allowed under this section without regard to this subsection and the limitation under section 26(a) or (B) the amount by which the aggregate amount of credits allowed by this subpart (determined without regard to this subsection) would increase if the limitation imposed by section 26(a) were increased by the greater of— (i) 15 percent of so much of the taxpayer’s earned income (within the meaning of section 32) which is taken into account in computing taxable income for the taxable year as exceeds $10,000, or (ii) in the case of a taxpayer with 3 or more qualifying children, the excess (if any) of— (I) the taxpayer’s social security taxes for the taxable year, over (II) the credit allowed under section 32 for the taxable year. The amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to section 26(a). For purposes of subparagraph (B), any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. (2) Social security taxes For purposes of paragraph (1)— (A) In general The term “social security taxes” means, with respect to any taxpayer for any taxable year— (i) the amount of the taxes imposed by sections 3101 and 3201(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins, (ii) 50 percent of the taxes imposed by section 1401 on the self-employment income of the taxpayer for the taxable year, and (iii) 50 percent of the taxes imposed by section 3211(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins. (B) Coordination with special refund of social security taxes The term “social security taxes” shall not include any taxes to the extent the taxpayer is entitled to a special refund of such taxes under section 6413(c).
(C) Special rule Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subparagraph (A)(i) shall be treated as taxes referred to in such subparagraph.
(3) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2001, the $10,000 amount contained in paragraph (1)(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, determined by substituting “calendar year 2000” for “calendar year 1992” in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50. (4) Special rule for for certain years Notwithstanding paragraph (3), in the case of any taxable year beginning after 2008 and before 2018, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $3,000.
(e) Identification requirement No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and taxpayer identification number of such qualifying child on the return of tax for the taxable year.
(f) Taxable year must be full taxable year Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months.
Prospective Amendment
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
Prior Provisions
A prior section 24, added Pub. L. 92–178, title VII, § 701(a),
Amendments
2013—Subsec. (b)(3). Pub. L. 112–240, § 104(c)(2)(B)(i), struck out par. (3). Prior to amendment, text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of—
“(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
“(B) the sum of the credits allowable under this subpart (other than this section and sections 23, 25A(i), 25B, 25D, 30, 30B, and 30D) and section 27 for the taxable year.”
Subsec. (d)(1). Pub. L. 112–240, § 104(c)(2)(B)(ii)(II), substituted “section 26(a)” for “section 26(a)(2) or subsection (b)(3), as the case may be” in concluding provisions.
Subsec. (d)(1)(A), (B). Pub. L. 112–240, § 104(c)(2)(B)(ii)(I), substituted “section 26(a)” for “section 26(a)(2) or subsection (b)(3), as the case may be,” in subpar. (A) and in introductory provisions in subpar. (B).
Subsec. (d)(4). Pub. L. 112–240, § 103(b), 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 text.
2010—Subsec. (b)(3)(B). Pub. L. 111–148, § 10909(b)(2)(A), (c), as amended by Pub. L. 111–312, § 101(b)(1), temporarily struck out “23,” before “25A(i),”. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (d)(4). Pub. L. 111–312, § 103(b), substituted “2009, 2010, 2011, and 2012” for “2009 and 2010” in heading and “, 2010, 2011, or 2012” for “or 2010” in text.
2009—Subsec. (b)(3)(B). Pub. L. 111–5, § 1144(b)(1)(A), inserted “30B,” after “30,”.
Pub. L. 111–5, § 1142(b)(1)(A), inserted “30,” after “25D,”.
Pub. L. 111–5, § 1004(b)(1), inserted “25A(i),” after “23,”.
Subsec. (d)(4). Pub. L. 111–5, § 1003(a), amended par. (4) generally. Prior to amendment, text read as follows: “Notwithstanding paragraph (3), in the case of any taxable year beginning in 2008, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $8,500.”
2008—Subsec. (a). Pub. L. 110–351 inserted “for which the taxpayer is allowed a deduction under section 151” after “of the taxpayer”.
Subsec. (b)(3)(B). Pub. L. 110–343, § 205(d)(1)(A), substituted “25D, and 30D” for “and 25D”.
Pub. L. 110–343, § 106(e)(2)(B), substituted “, 25B, and 25D” for “and 25B”.
Subsec. (d)(4). Pub. L. 110–343, § 501(a), added par. (4).
2007—Subsec. (d)(1)(B). Pub. L. 110–172, § 11(c)(1)(A), substituted “the greater of” for “the excess (if any) of” in introductory provisions.
Subsec. (d)(1)(B)(ii)(II). Pub. L. 110–172, § 11(c)(1)(B), substituted “section 32” for “section”.
2005—Subsec. (b)(3). Pub. L. 109–135, § 402(i)(3)(B)(i), substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions.
Subsec. (d)(1). Pub. L. 109–135, § 402(i)(3)(B)(ii), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The aggregate credits allowed to a taxpayer under subpart C shall be increased by the lesser of—
“(A) the credit which would be allowed under this section without regard to this subsection and the limitation under subsection (b)(3), or
“(B) the amount by which the amount of credit allowed by this section (determined without regard to this subsection) would increase if the limitation imposed by subsection (b)(3) were increased by the greater of—
“(i) 15 percent of so much of the taxpayer’s earned income (within the meaning of section 32) which is taken into account in computing taxable income for the taxable year as exceeds $10,000, or
“(ii) in the case of a taxpayer with 3 or more qualifying children, the excess (if any) of—
“(I) the taxpayer’s social security taxes for the taxable year, over
“(II) the credit allowed under section 32 for the taxable year.
The amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to subsection (b)(3). For purposes of subparagraph (B), any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year.”
2004—Subsec. (a). Pub. L. 108–311, § 101(a), reenacted heading without change and amended text generally, substituting provisions relating to $1,000 per year credit per qualifying child for provisions relating to different credit amounts for calendar years 2003 through 2010 or thereafter.
Subsec. (c)(1). Pub. L. 108–311, § 204(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘qualifying child’ means any individual if—
“(A) the taxpayer is allowed a deduction under section 151 with respect to such individual for the taxable year,
“(B) such individual has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins, and
“(C) such individual bears a relationship to the taxpayer described in section 32(c)(3)(B).”
Subsec. (c)(2). Pub. L. 108–311, § 204(b), substituted “subparagraph (A) of section 152(b)(3)” for “the first sentence of section 152(b)(3)”.
Subsec. (d)(1). Pub. L. 108–311, § 104(a), inserted at end of concluding provisions “For purposes of subparagraph (B), any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year.”
Subsec. (d)(1)(B)(i). Pub. L. 108–311, § 102(a), struck out “(10 percent in the case of taxable years beginning before
Subsec. (d)(2)(A)(iii). Pub. L. 108–311, § 408(b)(4), amended directory language of Pub. L. 107–90. See 2001 Amendment note below.
2003—Subsec. (a)(2). Pub. L. 108–27 amended table by deleting items relating to calendar years 2001 and 2002 and increasing per child amount from $600 to $1,000 for calendar years 2003 or 2004.
2002—Subsec. (b)(3)(B). Pub. L. 107–147, § 417(23)(A), amended directory language of Pub. L. 107–16, § 618(b)(2)(A). See 2001 Amendment note below.
Subsec. (d)(1)(B). Pub. L. 107–147, § 411(b), substituted “aggregate amount of credits allowed by this subpart” for “amount of credit allowed by this section” in introductory provisions.
2001—Subsec. (a). Pub. L. 107–16, § 201(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each qualifying child of the taxpayer an amount equal to $500 ($400 in the case of taxable years beginning in 1998).”
Subsec. (b). Pub. L. 107–16, § 201(b)(2)(A), amended heading generally, substituting “Limitations” for “Limitation based on adjusted gross income”.
Subsec. (b)(1). Pub. L. 107–16, § 201(b)(2)(B), amended heading generally, substituting “Limitation based on adjusted gross income” for “In general”.
Subsec. (b)(3). Pub. L. 107–16, § 201(b)(1), added par. (3).
Subsec. (b)(3)(B). Pub. L. 107–16, § 618(b)(2)(A), as amended by Pub. L. 107–147, § 417(23)(A), substituted “sections 23 and 25B” for “section 23”.
Pub. L. 107–16, § 202(f)(2)(B), substituted “this section and section 23” for “this section”.
Subsec. (d). Pub. L. 107–16, § 201(c)(1), amended subsec. heading and heading and text of par. (1) generally. Prior to amendment, text read as follows: “In the case of a taxpayer with three or more qualifying children for any taxable year, the aggregate credits allowed under subpart C shall be increased by the lesser of—
“(A) the credit which would be allowed under this section without regard to this subsection and the limitation under section 26(a); or
“(B) the amount by which the aggregate amount of credits allowed by this subpart (without regard to this subsection) would increase if the limitation imposed by section 26(a) were increased by the excess (if any) of—
“(i) the taxpayer’s Social Security taxes for the taxable year, over
“(ii) the credit allowed under section 32 (determined without regard to subsection (n)) for the taxable year.
The amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to section 26(a).”
Subsec. (d)(1). Pub. L. 107–16, § 201(b)(2)(C)(i), substituted “subsection (b)(3)” for “section 26(a)” wherever appearing in subsec. (d), as amended by Pub. L. 107–16, § 201(c).
Subsec. (d)(1)(B). Pub. L. 107–16, § 201(b)(2)(C)(ii), substituted “amount of credit allowed by this section” for “aggregate amount of credits allowed by this subpart” in subpar. (B) as amended by Pub. L. 107–16, § 201(c).
Subsec. (d)(2). Pub. L. 107–16, § 201(d), redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: “For taxable years beginning after
“(A) the amount of tax imposed by section 55 (relating to alternative minimum tax) with respect to such taxpayer for such taxable year, over
“(B) the amount of the reduction under section 32(h) with respect to such taxpayer for such taxable year.”
Subsec. (d)(2)(A)(iii). Pub. L. 107–90, as amended by Pub. L. 108–311, § 408(b)(4), substituted “section 3211(a)” for “section 3211(a)(1)”.
Subsec. (d)(3). Pub. L. 107–16, § 201(d)(2), redesignated par. (4) as (3). Former par. (3) redesignated (2).
Subsec. (d)(4). Pub. L. 107–16, § 201(c)(2), added par. (4). Former par. (4) redesignated (3).
1999—Subsec. (d)(2). Pub. L. 106–170 substituted “2001” for “1998” in introductory provisions.
1998—Subsec. (d)(1). Pub. L. 105–206, § 6003(a)(1)(C), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “In the case of a taxpayer with 3 or more qualifying children for any taxable year, the amount of the credit allowed under this section shall be equal to the greater of—
“(A) the amount of the credit allowed under this section (without regard to this subsection and after application of the limitation under section 26), or
“(B) the alternative credit amount determined under paragraph (2).”
Subsec. (d)(2). Pub. L. 105–277 substituted “For taxable years beginning after
Pub. L. 105–206, § 6003(a)(1)(C), added par. (2) and struck out heading and text of former par. (2). Text read as follows: “For purposes of this subsection, the alternative credit amount is the amount of the credit which would be allowed under this section if the limitation under paragraph (3) were applied in lieu of the limitation under section 26.”
Subsec. (d)(3). Pub. L. 105–206, § 6003(a)(1)(A), (B), (2), redesignated par. (5) as (3), substituted “paragraph (1)” for “paragraph (3)” in introductory provisions, and struck out heading and text of former par. (3). Text read as follows: “The limitation under this paragraph for any taxable year is the limitation under section 26 (without regard to this subsection)—
“(A) increased by the taxpayer’s social security taxes for such taxable year, and
“(B) reduced by the sum of—
“(i) the credits allowed under this part other than under subpart C or this section, and
“(ii) the credit allowed under section 32 without regard to subsection (m) thereof.”
Subsec. (d)(4). Pub. L. 105–206, § 6003(a)(1)(A), struck out heading and text of par. (4). Text read as follows: “If the amount of the credit under paragraph (1)(B) exceeds the amount of the credit under paragraph (1)(A), such excess shall be treated as a credit to which subpart C applies. The rule of section 32(h) shall apply to such excess.”
Subsec. (d)(5). Pub. L. 105–206, § 6003(a)(1)(B), redesignated par. (5) as (3).
Effective Date Of Amendment
Pub. L. 112–240, title I, § 103(e),
Amendment by section 104(c)(2)(B) of Pub. L. 112–240 applicable to taxable years beginning after
Pub. L. 111–312, title I, § 103(d),
Amendment by Pub. L. 111–148 terminated applicable to taxable years beginning after
Amendment by Pub. L. 111–148 applicable to taxable years beginning after
Pub. L. 111–5, div. B, title I, § 1003(b),
Pub. L. 111–5, div. B, title I, § 1004(d),
Pub. L. 111–5, div. B, title I, § 1004(e),
Pub. L. 111–5, div. B, title I, § 1142(c),
Pub. L. 111–5, div. B, title I, § 1142(e),
Pub. L. 111–5, div. B, title I, § 1144(c),
Pub. L. 111–5, div. B, title I, § 1144(d),
Pub. L. 110–351, title V, § 501(d),
Amendment by section 106(e)(2)(B) of title I of div. B of Pub. L. 110–343 applicable to taxable years beginning after
Pub. L. 110–343, div. B, title II, § 205(e), (f),
Pub. L. 110–343, div. C, title V, § 501(b),
Pub. L. 110–172, § 11(c)(2),
Amendment by Pub. L. 109–135 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, § 901, in the same manner as the provisions of such Act to which such amendment relates, see section 402(i)(3)(H) of Pub. L. 109–135, set out as a note under section 23 of this title. Title IX of Pub. L. 107–16 was repealed by Pub. L. 112–240, title I, § 101(a)(1),
Amendment by Pub. L. 109–135 effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which it relates and applicable to taxable years beginning after
Amendment by section 101(a) of Pub. L. 108–311 applicable to taxable years beginning after
Pub. L. 108–311, title I, § 102(b),
Pub. L. 108–311, title I, § 104(c)(1),
Amendment by title I of Pub. L. 108–311 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, § 901, to the same extent and in the same manner as the provisions of such Act to which such amendments relate, see section 105 of Pub. L. 108–311, set out as a note under section 1 of this title. Title IX of Pub. L. 107–16 was repealed by Pub. L. 112–240, title I, § 101(a)(1),
Amendment by section 204 of Pub. L. 108–311 applicable to taxable years beginning after
Pub. L. 108–27, title I, § 101(c),
Amendments by title I of Pub. L. 108–27 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, § 901, to the same extent and in the same manner as the provisions of such Act to which such amendments relate, see section 107 of Pub. L. 108–27, set out as a note under section 1 of this title. Title IX of Pub. L. 107–16 was repealed by Pub. L. 112–240, title I, § 101(a)(1),
Amendment by section 411(b) of Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.
Amendment by sections 201(b), 202(f), and 618(b) of Pub. L. 107–16 inapplicable to taxable years beginning during 2004 or 2005, see section 312(b)(2) of Pub. L. 108–311, set out as a note under section 23 of this title.
Amendment by sections 201(b), 202(f), and 618(b) of Pub. L. 107–16 inapplicable to taxable years beginning during 2002 and 2003, see section 601(b)(2) of Pub. L. 107–147, set out as a note under section 23 of this title.
Pub. L. 107–90, title II, § 204(f),
Pub. L. 107–16, title II, § 201(e),
Amendment by section 202(f)(2)(B) of Pub. L. 107–16 applicable to taxable years beginning after
Pub. L. 107–16, title VI, § 618(d),
Pub. L. 106–170, title V, § 501(c),
Pub. L. 105–277, div. J, title II, § 2001(c),
Amendment by 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.
Effective Date
Pub. L. 105–34, title I, § 101(e),
Miscellaneous
Pub. L. 107–16, title II, § 203,