#aac? ,,congress  #b;d ,session  ,h4 ,r4
 #ccic  ,,an ,,act  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to consolidate    
c]ta9 tax b5efits = educational exp5ses1
 to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to make improvem5ts to ! *ild tax 
cr$it1 & = o!r purposes4  #a4 ,table (  
,cont5ts ,! table ( cont5ts = ?is ,act  
is z foll[s3  ,sec4 #a4 ,table (        
,cont5ts4 ,title ,i--,/ud5t & ,family   
,tax ,simplification ,act ,sec4 #aja4   
,%ort title4 ,sec4 #ajb4 ,consolidation 
( c]ta9 tax b5efits = educational       
exp5ses4 ,sec4 #ajc4 ,expansion ( ,pell 
,grant exclusion f gross income4 ,sec4  
#ajd4 ,budget>y effects4 ,title         
,,ii--,*ild ,tax ,cr$it ,improvem5t ,act
 ,sec4 #bja4 ,%ort title4 ,sec4 #bjb4   
,elim9ation ( m>riage p5alty 9 *ild tax 
cr$it2 inflation adju/m5t ( cr$it am\nt 
& phase\t ?re%olds 9 *ild tax cr$it4    
,sec4 #bjc4 ,social security numb]      
requir$ to claim ! refundable portion ( 
! *ild tax cr$it4 ,sec4 #bjd4 ,budget>y 
effects4  ,i ,/ud5t & ,family ,tax      

,simplification ,act  #aja4 ,%ort title 
,?is title may be cit$ z ! ,/ud5t &     
,family ,tax ,simplification ,act4      
#ajb4 ,consolidation ( c]ta9 tax b5efits
 = educational exp5ses  7a7 ,am]ican    
opportunity tax cr$it ,section #be;,a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ to read z foll[s3  #be;,a4        
,am]ican opportunity tax cr$it  7a7 ,9  
g5]al ,9 ! case ( an individual1 !re    
%all be all[$ z a cr$it aga9/ ! tax     
impos$ by ?is *apt] = ! taxable ye>1 )  
respect to ea* eligible /ud5t1 an am\nt 
equal to ! sum (--  7#a7 #ajj p]c5t ( s 
mu* ( ! qualifi$ tuition & relat$       
exp5ses paid by ! taxpay] dur+ ! taxable
 ye> 7= education furni%$ to ! eligible 
/ud5t dur+ any academic p]iod beg9n+ 9  
su* taxable ye>7 z does n exce$ #b1jjj1 
plus  7#b7 #be p]c5t ( s mu* ( su*      
exp5ses s paid z exce$s ! doll> am\nt 9 
effect "u p>agraph 7#a7 b does n exce$  
twice su* doll> am\nt4  7b7 ,portion (  
cr$it refundable ,s mu* ( ! cr$it       
all[able "u subsection 7a7 ) respect to 

ea* eligible /ud5t 7det]m9$ )\t reg>d to
 ?is subsection & section #bf7;a7 & aft]
 application ( all o!r provisions ( ?is 
section7 z does n exce$ #a1ejj %all be  
treat$ z a cr$it all[able "u subp>t ,c  
7& n "u ?is "p74 ,! prec$+ s5t5ce %all n
 apply to any taxpay] = any taxable ye> 
if su* taxpay] is a *ild to :om section 
#a7;g7 applies = su* taxable ye>4  7c7  
,limitation bas$ on modifi$ adju/$ gross
 income  7#a7 ,9 g5]al ,! am\nt all[able
 z a cr$it "u subsection 7a7 = any      
taxable ye> %all be r$uc$ 7b n bel[ z]o7
 by an am\nt :i* be>s ! same ratio to ! 
am\nt s all[able 7det]m9$ )\t reg>d to  
?is subsection & subsection 7b7 b aft]  
application ( all o!r provisions ( ?is  
section7 z--  7,a7 ! excess (--  7i7 !  
taxpay]'s modifi$ adju/$ gross income = 
su* taxable ye>1 ov]  7ii7 #hj1jjj      
7twice su* am\nt 9 ! case ( a jo9t      
return71 be>s to  7,b7 #aj1jjj 7twice   
su* am\nt 9 ! case ( a jo9t return74    
7#b7 ,modifi$ adju/$ gross income ,=    
purposes ( ?is subsection1 ! t]m modifi$

 adju/$ gross income means ! adju/$     
gross income ( ! taxpay] = ! taxable ye>
 increas$ by any am\nt exclud$ f gross  
income "u section #iaa1 #ica1 or #icc4  
7d7 ,o!r limitations ,no cr$it %all be  
all[$ "u ?is section ) respect to any   
eligible /ud5t = any taxable ye> if--   
7#a7 su* /ud5t 0 tak5 into acc\nt 9     
det]m9+ ! cr$it all[$ "u ?is section 7by
 ! taxpay] or any o!r individual7 = any 
#d prior taxable ye>s1 or  7#b7 su*     
/ud5t has complet$ 7be=e ! beg9n+ ( su* 
taxable ye>7 ! fir/ #d ye>s (           
po/second>y education at an eligible    
educational in/itution4  7e7 ,def9itions
 ,= purposes ( ?is section--  7#a7      
,eligible /ud5t ,! t]m eligible /ud5t   
means1 ) respect to any academic p]iod1 
a /ud5t :o--  7,a7 meets ! requirem5ts (
 section #dhd7;a77#a7 ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajia7;a77#a771 z 9 effect on ,augu/ #e1
 #aiig1 &  7,b7 is c>ry+ at lea/ #a_/b !
 normal full-"t "w load = ! c\rse ( /udy
 ! /ud5t is pursu+4  7#b7 ,qualifi$     

tuition & relat$ exp5ses  7,a7 ,9 g5]al 
,! t]m qualifi$ tuition & relat$ exp5ses
 means tuition1 fees1 & c\rse mat]ials1 
requir$ = enrollm5t or att5dance (--    
7i7 ! taxpay]1  7ii7 ! taxpay]'s sp\se1 
or  7iii7 any dep5d5t ( ! taxpay] )     
respect to :om ! taxpay] is all[$ a     
d$uction "u section #aea1  at an        
eligible educational in/itution = c\rses
 ( in/ruction ( su* individual at su*   
in/itution4  7,b7 ,exception = education
 involv+ sports1 etc ,su* t]m does n    
include exp5ses ) respect to any c\rse  
or o!r education involv+ sports1 games1 
or hobbies1 unless su* c\rse or o!r     
education is "p ( ! individual's degree 
program4  7,c7 ,exception = nonacademic 
fees ,su* t]m does n include /ud5t      
activity fees1 a?letic fees1 insurance  
exp5ses1 or o!r exp5ses unrelat$ to an  
individual's academic c\rse (           
in/ruction4  7#c7 ,eligible educational 
in/itution ,! t]m eligible educational  
in/itution means an in/itution--  7,a7  
:i* is describ$ 9 section #dha ( !      

,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhh71 z 9 effect on ,augu/  
#e1 #aiig1 &  7,b7 :i* is eligible to   
p>ticipate 9 a program "u title ,,iv (  
su* ,act4  7f7 ,special rules  7#a7     
,id5tification requirem5t ,no cr$it %all
 be all[$ "u subsection 7a7 to a taxpay]
 ) respect to ! qualifi$ tuition &      
relat$ exp5ses ( an individual unless ! 
taxpay] includes ! "n & taxpay]         
id5tification numb] ( su* individual1 & 
! employ] id5tification numb] ( any     
in/itution to :i* su* exp5ses 7 paid1 on
 ! return ( tax = ! taxable ye>4  7#b7  
,adju/m5t = c]ta9 s*ol>%ips1 etc  7,a7  
,9 g5]al ,! am\nt ( qualifi$ tuition &  
relat$ exp5ses o!rwise tak5 into acc\nt 
"u subsection 7a7 ) respect to an       
individual = an academic p]iod %all be  
r$uc$ 7be=e ! application ( subsection  
7c77 by ! sum ( any am\nts paid = !     
b5efit ( su* individual :i* are         
allocable to su* p]iod z--  7i7 a       
qualifi$ s*ol>%ip :i* is excludable f   
gross income "u section #aag1  7ii7 an  

educational assi/ance all[ance "u *apt] 
#cj1 #ca1 #cb1 #cd1 or #ce ( title #ch1 
,unit$ ,/ates ,code1 or "u *apt] #afjf (
 title #aj1 ,unit$ ,/ates ,code1 &      
7iii7 a paym5t 7o!r ?an a gift1 beque/1 
devise1 or inh]itance )9 ! mean+ (      
section #ajb7;a77 = su* individual's    
educational exp5ses1 or attributable to 
su* individual's enrollm5t at an        
eligible educational in/itution1 :i* is 
excludable f gross income "u any law ( !
 ,unit$ ,/ates4  7,b7 ,coord9ation )    
,pell ,grants n us$ = qualifi$ tuition &
 relat$ exp5ses ,= purposes (           
subp>agraph 7,a71 ! am\nt ( any ,f$]al  
,pell ,grant "u section #dja ( ! ,high] 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj;a7 %all be r$uc$ 7b n bel[ z]o7 by
 ! am\nt ( exp5ses 7o!r ?an qualifi$    
tuition & relat$ exp5ses7 :i* are tak5  
into acc\nt 9 det]m9+ ! co/ ( att5dance 
7z def9$ 9 section #dgb ( ! ,high]      
,education ,act ( #aife1 z 9 effect on !
 date ( ! enactm5t ( ?is p>agraph7 ( su*
 individual at an eligible educational  

in/itution = ! academic p]iod = :i* !   
cr$it "u ?is section is be+ det]m9$4    
7#c7 ,treatm5t ( exp5ses paid by dep5d5t
 ,if a d$uction "u section #aea )       
respect to an individual is all[$ to    
ano!r taxpay] = a taxable ye> beg9n+ 9 !
 cal5d> ye> 9 :i* su* individual's      
taxable ye> beg9s--  7,a7 no cr$it %all 
be all[$ "u subsection 7a7 to su*       
individual = su* individual's taxable   
ye>1 &  7,b7 qualifi$ tuition & relat$  
exp5ses paid by su* individual dur+ su* 
individual's taxable ye> %all be treat$ 
= purposes ( ?is section z paid by su*  
o!r taxpay]4  7#d7 ,treatm5t ( c]ta9    
prepaym5ts ,if qualifi$ tuition & relat$
 exp5ses are paid by ! taxpay] dur+ a   
taxable ye> = an academic p]iod :i*     
beg9s dur+ ! fir/ #c mon?s foll[+ su*   
taxable ye>1 su* academic p]iod %all be 
treat$ = purposes ( ?is section z beg9n+
 dur+ su* taxable ye>4  7#e7 ,d5ial (   
d\ble b5efit ,no cr$it %all be all[$ "u 
?is section = any am\nt = :i* a d$uction
 is all[$ "u any o!r provision ( ?is    

*apt]4  7#f7 ,no cr$it = m>ri$          
individuals fil+ sep>ate returns ,if !  
taxpay] is a m>ri$ individual 7)9 !     
mean+ ( section #ggjc71 ?is section %all
 apply only if ! taxpay] & ! taxpay]'s  
sp\se file a jo9t return = ! taxable    
ye>4  7#g7 ,nonresid5t ali5s ,if !      
taxpay] is a nonresid5t ali5 individual 
= any portion ( ! taxable ye>1 ?is      
section %all apply only if su*          
individual is treat$ z a resid5t ali5 ( 
! ,unit$ ,/ates = purposes ( ?is *apt]  
by reason ( an election "u subsection   
7g7 or 7h7 ( section #fjac4  7g7        
,inflation adju/m5t  7#a7 ,9 g5]al ,9 ! 
case ( a taxable ye> beg9n+ aft] #bjah1 
! #b1jjj am\nt 9 subsection 7a77#a71 !  
#a1ejj am\nt 9 subsection 7b71 & !      
#hj1jjj am\nt 9 subsection              
7c77#a77;,a77ii7 %all ea* be increas$ by
 an am\nt equal to--  7,a7 su* doll>    
am\nt1 multipli$ by  7,b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjag =

 cal5d> ye> #aiib 9 subp>agraph 7,b7    
!re(4  7#b7 ,r\nd+ ,if any am\nt z      
adju/$ "u p>agraph 7#a7 is n a multiple 
( #ajj 7#a1jjj 9 ! case ( ! am\nt 9     
subsection 7c77#a77;,a77ii771 su* am\nt 
%all be r\nd$ to ! next l[e/ multiple ( 
#ajj 7#a1jjj 9 ! case ( ! am\nt 9       
subsection 7c77#a77;,a77ii774  7h7      
,regulations ,! ,secret>y may prescribe 
su* regulations or o!r guidance z may be
 necess>y or appropriate to c>ry out ?is
 section1 includ+ regulations provid+ = 
a recapture ( ! cr$it all[$ "u ?is      
section 9 cases :]e !re is a refund 9 a 
subsequ5t taxable ye> ( any am\nt :i* 0 
tak5 into acc\nt 9 det]m9+ ! am\nt ( su*
 cr$it4  4  7b7 ,requirem5t ,to report  
tuition paid r ?an tuition bill$        
,section #fjej,s7b77#b77;,b77i7 is am5d$
 by /rik+ or ! aggregate am\nt bill$4   
7c7 ,repeal ( d$uction = qualifi$       
tuition & relat$ exp5ses ,"p ,,vii (    
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by /rik+ section #bbb 7& by /rik+ 
! item relat+ to su* section 9 ! table (

 sections = su* "p74  7d7 ,con=m+       
am5dm5ts  7#a7 ,section #fb7;a7 ( su*   
,code is am5d$ by /rik+ p>agraph 7#ah74 
7#b7 ,section #gb7t77#g77;,b7 ( su*     
,code is am5d$ by /rik+ section         
#be;,a7g77#b7 & ins]t+ section          
#be;,a7f77#b74  7#c7 ,sections          
#hf7;b77#b77;,a71 #ace7;c77#d77;,a71    
#acg7;b77#c77;,a71 #aii7;d77#b77;,a71   
#bai7;g77#c77;,a77ii71 &                
#bba7;b77#b77;,c77i7 ( su* ,code are ea*
 am5d$ by /rik+ #bbb14  7#d7 ,section   
#dfi7;i77#c77;,f77iii7 ( su* ,code is   
am5d$ by /rik+ #bba1 & #bbb & ins]t+ &  
#bba4  7#e7 ,section                    
#ebi7;c77#c77;,b77v77,i7 ( su* ,code is 
am5d$ by /rik+ section #be;,a7g77#b7 &  
ins]t+ section #be;,a7f77#b74  7#f7     
,section #ebi7;e77#c77;,b77i7 ( su*     
,code is am5d$ by /rik+ section         
#be;,a7b77#c7 & ins]t+ section          
#be;,a7d74  7#g7 ,section               
#ecj7;d77#b77;,c7 ( su* ,code is am5d$--
  7,a7 by /rik+ section #be;,a7g77#b7 9 
clause 7i77,i7 & ins]t+ section         

#be;,a7f77#b71 &  7,b7 by /rik+ ,hope & 
,lifetime ,le>n+ cr$its 9 ! head+ &     
ins]t+ ,am]ican opportunity tax cr$it4  
7#h7 ,section #ecj7;d77#d77;,b77iii7 (  
su* ,code is am5d$ by /rik+ section     
#be;,a7g77#b7 & ins]t+ section          
#be;,a7d77#d77;,b74  7#i7 ,section      
#fjej,s7e7 ( su* ,code is am5d$ by /rik+
 subsection 7g77#b7 & ins]t+ subsection 
7f77#b74  7#aj7 ,section                
#fbaa7;b77#d77;,a7 ( su* ,code is am5d$ 
by /rik+ subsection 7i77#f7 & ins]t+    
subsection 7b74  7#aa7 ,section         
#fbac7;g77#b77;,j7 ( su* ,code is am5d$ 
by /rik+ ,,t9 requir$ "u section        
#be;,a7g77#a7 & ins]t+ ,,t91 & employ]  
id5tification numb]1 requir$ "u section 
#be;,a7f77#a74  7#ab7 ,section #ajjd7;c7
 ( division ,b ( ! ,am]ican ,recov]y &  
,re9ve/m5t ,tax ,act ( #bjji is am5d$-- 
7,a7 9 p>agraph 7#a7--  7i7 by /rik+    
section #be;,a7i77#f7 ea* place x appe>s
 & ins]t+ section #be;,a7b71  7ii7 by   
/rik+ 8) respect to taxable ye>s beg9n+ 
aft] #bjjh & be=e #bjah0 9 subp>agraph  

7,a7 & ins]t+ 8) respect to ea* taxable 
ye>01 &  7iii7 by /rik+ 8= taxable ye>s 
beg9n+ aft] #bjjh & be=e #bjah0 9       
subp>agraph 7,b7 & ins]t+ 8= ea* taxable
 ye>01  7,b7 9 p>agraph 7#b71 by /rik+  
,section #be;,a7i77#f7 & ins]t+ ,section
 #be;,a7b71 &  7,c7 9 p>agraph          
7#c77;,c71 by /rik+ subsection 7i77#f7 &
 ins]t+ subsection 7b74  7#ac7 ,! table 
( sections = subp>t ,a ( "p ,,iv (      
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
! item relat+ to section #be;,a & ins]t+
 ! foll[+ new item3  ,sec4 #be;,a4      
,am]ican opportunity tax cr$it4  4  7e7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjad4  #ajc4 
,expansion ( ,pell ,grant exclusion f   
gross income  7a7 ,9 g5]al ,p>agraph    
7#a7 ( section #aag7;b7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$--  7#a7  
by /rik+ ! p]iod at ! end & ins]t+ 1 or1
  7#b7 by /rik+ receiv$ by an individual
 z a s*ol>%ip & ins]t+ ! foll[+3        

receiv$ by an individual--  7,a7 z a    
s*ol>%ip  1 &  7#c7 by add+ at ! end !  
foll[+ new subp>agraph3  7,b7 z a ,f$]al
 ,pell ,grant "u section #dja ( ! ,high]
 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ajgj;a74  4  7b7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjad4  #ajd4 ,budget>y effects    
7a7 ,/atutory ,pay-,z-,y-,g ,scorec>ds  
,! budget>y effects ( ?is ,act %all n be
 ent]$ on ei!r ,,paygo scorec>d ma9ta9$ 
pursuant to section #d7;d7 ( ! ,/atutory
 ,pay-,z-,y-,g ,act ( #bjaj4  7b7 ,s5ate
 ,,paygo ,scorec>ds ,! budget>y effects 
( ?is ,act %all n be ent]$ on any       
,,paygo scorec>d ma9ta9$ = purposes (   
section #bja ( ,s4 ,con4 ,res4 #ba      
7#aaj? ,congress74  ,,ii ,*ild ,tax     
,cr$it ,improvem5t ,act  #bja4 ,%ort    
title ,?is title may be cit$ z ! ,*ild  
,tax ,cr$it ,improvem5t ,act ( #bjad4   
#bjb4 ,elim9ation ( m>riage p5alty 9    
*ild tax cr$it2 inflation adju/m5t (    
cr$it am\nt & phase\t ?re%olds 9 *ild   

tax cr$it  7a7 ,elim9ation ( m>riage    
p5alty ,section #bd7;b77#b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by /rik+
 means-- & all t foll[s & ins]t+ means  
#ge1jjj 7twice su* am\nt 9 ! case ( a   
jo9t return744  7b7 ,inflation adju/m5t 
( cr$it am\nt & phase\t ?re%olds        
,section #bd ( su* ,code is am5d$ by    
add+ at ! end ! foll[+ new subsection3  
7g7 ,inflation adju/m5t  7#a7 ,9 g5]al  
,9 ! case ( any taxable ye> beg9n+ aft] 
#bjad1 ! #a1jjj am\nt 9 subsection 7a7 &
 ! #ge1jjj am\nt 9 subsection 7b77#b7   
%all ea* be increas$ by an am\nt equal  
to--  7,a7 su* doll> am\nt1 multipli$ by
  7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
! taxable ye> beg9s1 det]m9$ by         
sub/itut+ cal5d> ye> #bjac = cal5d> ye> 
#aiib 9 subp>agraph 7,b7 !re(4  7#b7    
,r\nd+ ,any increase det]m9$ "u p>agraph
 7#a7 %all be r\nd$--  7,a7 9 ! case ( !
 #a1jjj am\nt 9 subsection 7a71 to !    
ne>e/ multiple ( #ej1 &  7,b7 9 ! case (
 ! #ge1jjj am\nt 9 subsection 7b77#b71  

to ! ne>e/ multiple ( #a1jjj4  4  7c7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjad4  #bjc4 
,social security numb] requir$ to claim 
! refundable portion ( ! *ild tax cr$it 
7a7 ,9 g5]al ,subsection 7d7 ( section  
#bd ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] p>agraph 7#d7 ! 
foll[+ new p>agraph3  7#e7              
,id5tification requirem5t ) respect to  
taxpay]  7,a7 ,9 g5]al ,p>agraph 7#a7   
%all n apply to any taxpay] = any       
taxable ye> unless ! taxpay] includes ! 
taxpay]'s social security numb] on !    
return ( tax = su* taxable ye>4  7,b7   
,jo9t returns ,9 ! case ( a jo9t return1
 ! requirem5t ( subp>agraph 7,a7 %all be
 treat$ z met if ! social security numb]
 ( ei!r sp\se is includ$ on su* return4 
4  7b7 ,omission treat$ z ma!matical or 
cl]ical error ,subp>agraph 7,i7 (       
section #fbac7;g77#b7 ( su* ,code is    
am5d$ to read z foll[s3  7,i7 an        
omission ( a correct social security    

numb] requir$ "u section #bd7;d77#e7    
7relat+ to refundable portion ( *ild tax
 cr$it71 or a correct ,,t9 requir$ "u   
section #bd7;e7 7relat+ to *ild tax     
cr$it71 to be includ$ on a return1  4   
7c7 ,con=m+ am5dm5t ,subsection 7e7 (   
section #bd ( su* ,code is am5d$ by     
ins]t+ ,) ,respect to ,qualify+ ,*ildr5 
aft] ,id5tification ,requirem5t 9 !     
head+ !re(4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  #bjd4 ,budget>y   
effects  7a7 ,/atutory ,pay-,z-,y-,g    
,scorec>ds ,! budget>y effects ( ?is    
,act %all n be ent]$ on ei!r ,,paygo    
scorec>d ma9ta9$ pursuant to section    
#d7;d7 ( ! ,/atutory ,pay-,z-,y-,g ,act 
( #bjaj4  7b7 ,s5ate ,,paygo ,scorec>ds 
,! budget>y effects ( ?is ,act %all n be
 ent]$ on any ,,paygo scorec>d ma9ta9$ =
 purposes ( section #bja ( ,s4 ,con4    
,res4 #ba 7#aaj? ,congress74  ,pass$ !  
,h\se ( ,repres5tatives ,july #bd1      
#bjad4;,cl]k4