,i #aacth ,,congress #ast ,session ,h4 ,r4 #baaf ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjac ,mr4 ,neal 7for himself1 ,ms4 ,de,lauro1 ,mr4 ,levin1 ,mr4 ,rangel1 ,mr4 ,mc,dermott1 ,mr4 ,lewis1 ,mr4 ,becerra1 ,mr4 ,doggett1 ,mr4 ,larson of ,connecticut1 ,mr4 ,blumenauer1 ,mr4 ,pascrell1 ,mr4 ,crowley1 ,ms4 ,schwartz1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,ms4 ,linda ,t4 ,snchez of ,california1 ,mr4 ,kind1 and ,mr4 ,thompson of ,california7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make improvements in the earned income tax credit4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,the ,earned ,income ,tax ,credit ,improvement and ,simplification ,act #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,certain improvements in the earned income tax credit made permanent4 ,sec4 #c4 ,strengthening the earned income tax credit for individuals with no qualifying children4 ,sec4 #d4 ,taxpayer eligible for credit for individuals with no qualifying children if qualifying children do not have valid ,social ,security number4 ,sec4 #e4 ,credit allowed in case of certain separated spouses4 ,sec4 #f4 ,taxpayer eligible for credit without qualifying child if qualifying child claimed by another member of family4 ,sec4 #g4 ,elimination of disqualified investment income test4 #b4 ,certain improvements in the earned income tax credit made permanent 7a7 ,increase in credit percentage for three or more qualifying children made permanent ,paragraph 7#a7 of section #cb7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,percentages ,the credit percentage and the phaseout percentage shall be determined in accordance with the following table3 ,in the case of an eligible individual with3,the credit percentage is3,the phaseout percentage is3 #a qualifying child#cdae4ih #b qualifying children#djba4jf #c or more qualifying children#deba4jf ,no qualifying children#g4feg4fe 4 7b7 ,reduction of marriage penalty made permanent 7#a7 ,in general ,subparagraph 7,b7 of section #cb7;b77#b7 of such ,code is amended to read as follows3 7,b7 ,joint returns 7i7 ,in general ,in the case of a joint return filed by an eligible individual and such individual's spouse1 the phaseout amount determined under subparagraph 7,a7 shall be increased by #e1jjj4 7ii7 ,inflation adjustment ,in the case of any taxable year beginning after #bjab1 the #e1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins determined by substituting calendar year #bjji for calendar year #aiib in subparagraph 7,b7 thereof4 7iii7 ,rounding ,subparagraph 7,a7 of subsection 7j77#b7 shall apply after taking into account any increase under clause 7ii74 4 7c7 ,conforming amendment ,subsection 7b7 of section #cb of such ,code is amended by striking paragraph 7#c74 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,strengthening the earned income tax credit for individuals with no qualifying children 7a7 ,credit for certain individuals over age #ba 7#a7 ,in general ,paragraph 7#a7 of section #cb7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,g7 ,special rule for working individuals over age #bj and without qualifying child 7i7 ,in general ,in the case of an individual 7or1 if the individual is married1 either the individual or the individual's spouse7 who-- 7,i7 has attained the age of #ba but not attained age #be before the close of the taxable year1 and 7,,ii7 is not a full-time student at any time during the taxable year1 paragraph 7#a77;,a77ii77,,ii7 shall not apply for purposes of determining whether such individual is an eligible individual4 7ii7 ,student ,for purposes of this subparagraph1 an individual shall be considered a full-time student if such individual is carrying more than #a_/b the normal full-time work load for the course of study the individual is pursuing4 4 7#b7 ,information return matching ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall develop and implement procedures for checking an individual's claim for a credit under section #cb of the ,internal ,revenue ,code of #aihf1 by reason of subsection 7c77#a77;,g7 thereof1 against any information return made with respect to such individual under section #fjej,s 7relating to returns relating to higher education tuition and related expenses74 7b7 ,increased credit 7#a7 ,credit percentage and phaseout percentage ,the table contained in section #cb7;b77#a77;,a7 of such ,code1 as amended by this ,act1 is amended by striking #g4fe each place it appears and inserting #ae4c4 7#b7 ,earned income amount and phaseout amount 7,a7 ,in general ,the table contained in section #cb7;b77#b77;,a7 of such ,code is amended-- 7i7 by striking #d1bbj and inserting #h1hbj1 and 7ii7 by striking #e1bhj and inserting #aj1dbe4 7,b7 ,inflation adjustments ,subparagraph 7,b7 of section #cb7;j77#a7 of such ,code is amended-- 7i7 by inserting except as provided in clause 7iii7 in clause 7i7 before in the case of amounts1 7ii7 by striking and at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 in the case of the #h1hbj and #aj1dbe amounts in subsection 7b77#b77;,a71 by substituting calendar year #bjab for calendar year #aiib in subparagraph 7,b7 of such section #a4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #d4 ,taxpayer eligible for credit for individuals with no qualifying children if qualifying children do not have valid ,social ,security number 7a7 ,in general ,subparagraph 7,f7 of section #cb7;c77#a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,f7 ,individuals who do not include ,,tin1 etc41 of any qualifying child ,in the case of any eligible individual who has one or more qualifying children1 if-- 7i7 no qualifying child of such individual is taken into account under subsection 7b7 by reason of paragraph 7#c77;,d71 and 7ii7 no child of such individual is taken into account for purposes of any other child tax benefit under this chapter1 for purposes of the credit allowed under this section1 such individual may be considered an eligible individual without a qualifying child4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #e4 ,credit allowed in case of certain separated spouses 7a7 ,in general ,subsection 7d7 of section #cb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,married individuals4--,in the case of and inserting the following3 ,married individuals4-- 7#a7 ,in general ,in the case of 1 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,special rule for separated spouse ,an individual shall not be treated as married for purposes of this section if such individual-- 7,a7 is married 7within the meaning of section #ggjc7;a77 and files a separate return for the taxable year1 7,b7 lives with a qualifying child of the individual for more than one-half of such taxable year1 and 7,c7 7i7 during the last #f months such taxable year1 does not have the same principal place of abode as the individual's spouse1 or 7ii7 has a legally binding separation agreement with the individual's spouse and is not a member of the same household with the individual's spouse by the end of the taxable year4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #f4 ,taxpayer eligible for credit without qualifying child if qualifying child claimed by another member of family 7a7 ,in general ,paragraph 7#a7 of section #cb7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,g7 ,taxpayer eligible for credit without qualifying child if qualifying child claimed by another member of family 7i7 ,in general ,if-- 7,i7 an individual is claimed as a qualifying child by an eligible individual for any taxable year of such eligible individual beginning in a calendar year1 and 7,,ii7 such individual is the qualifying child of another eligible individual for any taxable year beginning in such calendar year1 such other eligible individual may be treated as an eligible individual without a qualifying child for purposes of this section for such taxable year4 7ii7 ,exception for qualifying child claimed by parent ,if an individual is claimed as a qualifying child for any taxable year by a parent of such child1 clause 7i7 shall not apply with respect to any other custodial parent of such child4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #g4 ,elimination of disqualified investment income test 7a7 ,in general ,section #cb of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7i74 7b7 ,conforming amendments 7#a7 ,section #cb7;j77#a77;,b77i7 of such ,code is amended by striking subsections 7b77#b77;,a7 and 7i77#a7 and inserting subsection 7b77#b77;,a74 7#b7 ,section #cb7;j77#b7 of such ,code is amended-- 7,a7 by striking paragraph 7#b71 and 7,b7 by striking ,rounding4-- and all that follows through ,if any dollar amount and inserting the following3,rounding4--,if any dollar amount 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4