,,ii #aahth ,,congress #ast ,session ,s4 #aiib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ad1 #bjbc,mr4 ,brown 7for himself1 ,mr4 ,bennet1 ,mr4 ,booker1 ,mr4 ,warnock1 ,mr4 ,wyden1 ,mr4 ,durbin1 ,ms4 ,baldwin1 ,mr4 ,blumenthal1 ,ms4 ,cantwell1 ,mr4 ,cardin1 ,mr4 ,casey1 ,mr4 ,coons1 ,ms4 ,cortez ,masto1 ,ms4 ,duckworth1 ,mrs4 ,feinstein1 ,mr4 ,fetterman1 ,mrs4 ,gillibrand1 ,ms4 ,hassan1 ,mr4 ,heinrich1 ,ms4 ,hirono1 ,mr4 ,kaine1 ,mr4 ,king1 ,ms4 ,klobuchar1 ,mr4 ,markey1 ,mr4 ,merkley1 ,mr4 ,murphy1 ,mrs4 ,murray1 ,mr4 ,peters1 ,mr4 ,reed1 ,ms4 ,rosen1 ,mr4 ,sanders1 ,mr4 ,schatz1 ,mr4 ,schumer1 ,mrs4 ,shaheen1 ,ms4 ,smith1 ,ms4 ,stabenow1 ,mr4 ,van ,hollen1 ,mr4 ,warner1 ,ms4 ,warren1 ,mr4 ,welch1 and ,mr4 ,whitehouse7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand the earned income and child tax credits1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,working ,families ,tax ,relief ,act of #bjbc4 ,i ,expansion of the earned income credit #aja4 ,permanent extension of earned income credit rules for individuals without qualifying children 7a7 ,decrease in minimum age for credit 7#a7 ,in general ,subclause 7,,ii7 of section #cb7;c77#a77;,a77ii7 of the ,internal ,revenue ,code of #aihf is amended by striking age #be and inserting the applicable minimum age4 7#b7 ,applicable minimum age ,paragraph 7#a7 of section #cb7;c7 of such ,code is amended by adding at the end the following new subparagraph3 7,f7 ,applicable minimum age ,for purposes of this paragraph-- 7i7 ,in general ,the term applicable minimum age means-- 7,i7 except as otherwise provided in this clause1 age #ai1 7,,ii7 in the case of a specified student 7other than a qualified former foster youth or a qualified homeless youth71 age #bd1 and 7,,iii7 in the case of a qualified former foster youth or a qualified homeless youth1 age #ah4 7ii7 ,specified student ,for purposes of this subparagraph1 the term specified student means1 with respect to any taxable year1 an individual who is an eligible student 7as defined in section #be;,a7b77#c77 during at least #e calendar months during the taxable year4 7iii7 ,qualified former foster youth ,for purposes of this subparagraph1 the term qualified former foster youth means an individual who-- 7,i7 on or after the date that such individual attained age #ad1 was in foster care provided under the supervision or administration of an entity administering 7or eligible to administer7 a plan under part ,b or part ,e of title ,,iv of the ,social ,security ,act 7without regard to whether ,federal assistance was provided with respect to such child under such part ,e71 and 7,,ii7 provides 7in such manner as the ,secretary may provide7 consent for entities which administer a plan under part ,b or part ,e of title ,,iv of the ,social ,security ,act to disclose to the ,secretary information related to the status of such individual as a qualified former foster youth4 7iv7 ,qualified homeless youth ,for purposes of this subparagraph1 the term qualified homeless youth means1 with respect to any taxable year1 an individual who certifies1 in a manner as provided by the ,secretary1 that such individual is either an unaccompanied youth who is a homeless child or youth1 or is unaccompanied1 at risk of homelessness1 and self-supporting4 4 7b7 ,elimination of maximum age for credit ,subclause 7,,ii7 of section #cb7;c77#a77;,a77ii7 of the ,internal ,revenue ,code of #aihf is amended by striking but not attained age #fe4 7c7 ,increase in credit and phaseout percentages ,the table contained in paragraph 7#a7 of section #cb7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking #g4fe each place it appears and inserting #ae4c4 7d7 ,increase in earned income and phaseout amounts ,the table contained in subparagraph 7,a7 of section #cb7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #d1bbj and inserting #i1hbj1 and 7#b7 by striking #e1bhj and inserting #aa1faj4 7e7 ,inflation adjustments 7#a7 ,in general ,paragraph 7#a7 of section #cb7;j7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,in general ,in the case of any taxable year beginning after-- 7,a7 #bjba1 in the case of the dollar amount in subsection 7i77#a71 7,b7 #bjbd1 in the case of the dollar amounts in the third row of the table in subsection 7b77#b77;,a71 and 7,c7 #bjae1 in any other case1 each of the dollar amounts in subsections 7b77#b7 and 7i77#a7 shall be increased by an amount equal to the inflation amount4 4 7#b7 ,inflation amount ,subsection 7j7 of section #cb of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,inflation amount ,for purposes of paragraph 7#a71 the inflation amount with respect to any dollar amount for any taxable year is the amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the percentage 7if any7 by which-- 7i7 the ,,cpi 7as defined in section #a7;f77#d77 for the calendar year preceding the year in which the taxable year begins1 exceeds 7ii7 the ,,cpi 7as so defined7 for-- 7,i7 in the case of amounts in the third row of the table in subsection 7b77#b77;,a71 #bjbc1 7,,ii7 in the case of any other amount in subsection 7b77#b77;,a71 #aiie1 7,,iii7 in the case of the #e1jjj amount in subsection 7b77#b77;,b71 #bjjh1 and 7,,iv7 in the case of the #aj1jjj amount in subsection 7i77#a71 #bjbj4 4 7f7 ,conforming amendment ,section #cb of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7n74 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbc4 #ajb4 ,application of earned income credit to possessions of the ,united ,states 7a7 ,puerto ,rico ,subparagraph 7,b7 of section #gecj7;a77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking in the case of calendar years #bjba through #bjbe14 7b7 ,possessions with mirror code tax systems ,subparagraph 7,b7 of section #gecj7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking in the case of calendar years #bjba through #bjbe14 7c7 ,american ,samoa ,subparagraph 7,b7 of section #gecj7;c77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking in the case of calendar years #bjba through #bjbe14 #ajc4 ,election to use prior year earned income 7a7 ,in general ,paragraph 7#b7 of section #cb7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,election to use prior year earned income 7i7 ,in general ,if the earned income of the taxpayer for any taxable year is less than the earned income of the taxpayer for the preceding taxable year1 the credit allowed under subsection 7a7 may1 at the election of the taxpayer1 be determined by substituting-- 7,i7 such earned income for such preceding taxable year1 for 7,,ii7 such earned income for the taxable year for which such credit is being determined4 7ii7 ,application to joint returns ,for purposes of clause 7i71 in the case of a joint return1 the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such taxable year4 7iii7 ,special rules 7,i7 ,errors treated as mathematical errors ,for purposes of section #fbac1 an incorrect use on a return of earned income pursuant to clause 7i7 shall be treated as a mathematical or clerical error4 7,,ii7 ,no effect on determination of gross income1 etc ,except as otherwise provided in this subparagraph1 this title shall be applied without regard to any substitution under clause 7i74 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjbc4 ,,ii ,expansion of the child tax credit #bja4 ,permanent establishment of child tax credit with monthly advance payment 7a7 ,credit amount ,subsection 7a7 of section #bd of the ,internal ,revenue ,code of #aihf is amended by striking equal to #a1jjj and inserting 8equal to-- 7#a7 #bej 7#cjj in the case of a qualifying child who has not attained age #f as of the close of the taxable year71 multiplied by 7#b7 the number of qualifying months of the taxpayer occurring during the taxable year4 4 7b7 ,limitation based on adjusted gross income ,subsection 7b7 of section #bd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7b7 ,limitations based on modified adjusted gross income 7#a7 ,initial reduction 7,a7 ,in general ,the amount of the credit allowable under subsection 7a7 shall be reduced 7but not below zero7 by #e percent of the excess 7if any7 of the taxpayer's modified adjusted gross income for the applicable taxable year over the initial threshold amount in effect for such applicable taxable year4 7,b7 ,limitation on initial reduction ,the amount of the reduction under subparagraph 7,a7 shall not exceed the lesser of-- 7i7 the excess 7if any7 of-- 7,i7 the credit allowable under subsection 7a7 for the taxable year determined without regard to this paragraph1 over 7,,ii7 the amount which would be described in subclause 7,i7 if subsection 7a77#a7 were applied by substituting #aff4fg for #bej 7#cjj in the case of a qualifying child who has not attained age #f as of the close of the taxable year7 and subsection 7i7 did not apply1 or 7ii7 #e percent of the excess of the secondary threshold amount over the initial threshold amount4 7#b7 ,secondary reduction ,the amount of the credit allowable under subsection 7a71 determined after the application of paragraph 7#a71 shall be further reduced 7but not below zero7 by #e percent of the excess 7if any7 of the taxpayer's modified adjusted gross income for the applicable taxable year over the secondary threshold amount4 7#c7 ,threshold amounts ,for purposes of this subsection-- 7,a7 ,initial threshold amount ,the term initial threshold amount means-- 7i7 #aej1jjj1 in the case of a joint return or surviving spouse 7as defined in section #b7;a771 7ii7 #a_/b the dollar amount in effect under clause 7i71 in the case of a married individual filing a separate return1 and 7iii7 #aab1ejj1 in any other case4 7,b7 ,secondary threshold amount ,the term secondary threshold amount means-- 7i7 #djj1jjj1 in the case of a joint return or surviving spouse 7as defined in section #b7;a771 7ii7 #cjj1jjj1 in the case of a head of household 7as defined in section #b7;b771 and 7iii7 #bjj1jjj1 in any other case4 7#d7 ,other terms ,for purposes of this subsection-- 7,a7 ,applicable taxable year ,the term applicable taxable year means1 with respect to any taxable year for which the credit under this section is determined-- 7i7 such taxable year1 or 7ii7 if the taxpayer elects the application of this clause 7at such time and in such form and manner as the ,secretary may provide71 the preceding taxable year or the second preceding taxable year 7as specified in such election74 7,b7 ,modified adjusted gross income ,the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 4 7c7 ,inflation adjustments ,subsection 7i7 of section #bd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7i7 ,adjustments for inflation ,in the case of any taxable year beginning after ,december #ca1 #bjbd-- 7#a7 ,in general ,the dollar amounts in subsection 7a7 and clauses 7i7 and 7iii7 of subsection 7b77#c77;,a7 shall each be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the percentage 7if any7 by which-- 7i7 the ,,cpi 7as defined in section #a7;f77#d77 for the calendar year preceding the calendar year in which such month begins1 exceeds 7ii7 the ,,cpi 7as so defined7 for calendar year #bjbc4 7#b7 ,rounding ,any increase under the preceding sentence-- 7,a7 which is not a multiple of #aj1 in the case of the amount in subsection 7a71 shall be rounded to the nearest multiple of #aj1 and 7,b7 which is not a multiple of #e1jjj1 in the case of the amounts in subsection 7b77#c77;,a71 shall be rounded to the nearest multiple of #e1jjj4 4 7d7 ,qualifying child rules 7#a7 ,in general ,subsection 7c7 of section #bd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7c7 ,qualifying month2 qualifying child ,for purposes of this section-- 7#a7 ,qualifying month 7,a7 ,in general ,the term qualifying month means any calendar month for which there is a qualifying child with respect to the taxpayer4 7,b7 ,rules for birth or death of a child ,in the case of a child who is born or dies during the taxable year1 any calendar month in such year which occurs before the month of such birth or after the month of such death shall be a qualifying month for the taxpayer who is treated as establishing presumptive eligibility with respect to such child pursuant to section #gebg;,a7i77#b77;,e74 7#b7 ,qualifying child ,the term qualifying child means1 with respect to any taxpayer for any calendar month1 an individual who-- 7,a7 has the same principal place of abode as the taxpayer for more than of such month1 7,b7 is younger than the taxpayer and will not1 as of the close of the taxable year which includes such month1 have attained age #ah1 7,c7 receives care from the taxpayer during such month which is not compensated1 7,d7 is not the spouse of the taxpayer at any time during such month1 and 7,e7 either-- 7i7 is a citizen1 national1 or resident of the ,united ,states1 or 7ii7 if the taxpayer is a citizen or national of the ,united ,states1 is described in section #aeb7;f77#a77;,b7 with respect to such taxpayer4 7#c7 ,certain individuals ineligible ,in the case of an individual who is a qualifying child with respect to another taxpayer for any calendar month1 such individual shall be treated for such month as having no qualifying children4 7#d7 ,care from the taxpayer 7,a7 ,in general ,except as otherwise provided by the ,secretary1 whether any individual receives care from the taxpayer 7within the meaning of paragraph 7#b77;,c77 shall be determined on the basis of facts and circumstances with respect to the following factors3 7i7 ,the supervision provided by the taxpayer regarding the daily activities and needs of the individual4 7ii7 ,the maintenance by the taxpayer of a secure environment at which the individual resides4 7iii7 ,the provision or arrangement by the taxpayer of1 and transportation by the taxpayer to1 medical care at regular intervals and as required for the individual4 7iv7 ,the involvement by the taxpayer in1 and financial and other support by the taxpayer for1 educational or similar activities of the individual4 7v7 ,any other factor that the ,secretary determines to be appropriate to determine whether the individual receives care from the taxpayer4 7,b7 ,determination of whether care is compensated ,for purposes of determining if care is compensated within the meaning of paragraph 7#b77;,c71 compensation from the ,federal ,government1 a ,state or local government1 a ,tribal government1 or any possession of the ,united ,states shall not be taken into account4 7#e7 ,application of tie-breaker rules 7,a7 ,in general ,except as provided in subparagraph 7,d71 if any individual would 7but for this paragraph7 be a qualifying child of #b or more taxpayers for any month1 such individual shall be treated as the qualifying child only of the taxpayer who is-- 7i7 the parent of the individual 7or1 if such individual would 7but for this paragraph7 be a qualifying child of #b or more parents of the individual for such month1 the parent of the individual determined under subparagraph 7,b771 7ii7 if the individual is not a qualifying child of any parent of the individual 7determined without regard to this paragraph71 the specified relative of the individual with the highest adjusted gross income for the taxable year which includes such month1 or 7iii7 if the individual is neither a qualifying child of any parent of the individual nor a qualifying child of any specified relative of the individual 7in both cases determined without regard to this paragraph71 the taxpayer with the highest adjusted gross income for the taxable year which includes such month4 7,b7 ,tie-breaker among parents ,if any individual would 7but for this paragraph7 be the qualifying child of #b or more parents of the individual for any month1 such child shall be treated only as the qualifying child of-- 7i7 the parent with whom the child resided for the longest period of time during such month1 or 7ii7 if the child resides with both parents for the same amount of time during such month1 the parent with the highest adjusted gross income for the taxable year which includes such month4 7,c7 ,specified relative ,for purposes of this paragraph1 the term specified relative means an individual who is-- 7i7 an ancestor of a parent of the qualifying child1 7ii7 a brother or sister of a parent of the qualifying child1 or 7iii7 a brother1 sister1 stepbrother1 or stepsister of the qualifying child4 7,d7 ,certain parents or specified relatives not taken into account ,this paragraph shall be applied without regard to any parent or specified relative of an individual for any month if-- 7i7 such parent or specified relative elects to have such individual not be treated as a qualifying child of such parent or specified relative for such month1 7ii7 in the case of a parent of such individual1 the adjusted gross income of the taxpayer 7with respect to whom such individual would be treated as a qualifying child after application of this subparagraph7 for the taxable year which includes such month is higher than the highest adjusted gross income of any parent of the individual for the taxable year which includes such month 7determined without regard to any parent with respect to whom such individual is not a qualifying child1 determined without regard to subparagraphs 7,a7 and 7,b7 and after application of this subparagraph71 and 7iii7 in the case of a specified relative of such individual1 the adjusted gross income of the taxpayer 7with respect to whom such individual would be treated as a qualifying child after application of this subparagraph7 for the taxable year which includes such month is higher than the highest adjusted gross income of any parent and any specified relative of the individual for the taxable year which includes such month 7determined without regard to any parent and any specified relative with respect to whom such individual is not a qualifying child1 determined without regard to subparagraphs 7,a7 and 7,b7 and after application of this subparagraph74 7,e7 ,treatment of joint returns ,for purposes of this paragraph1 the adjusted gross income of each person who files a joint return for the taxable year is the total adjusted gross income shown on the joint return for the taxable year4 7,f7 ,parent ,except as otherwise provided by the ,secretary1 the term parent shall have the same meaning as when used in section #aeb7;c77#d74 7#f7 ,treatment of temporary absences ,except as provided in regulations or other guidance issued by the ,secretary1 for purposes of this subsection-- 7,a7 ,in general ,in the case of any individual's temporary absence from such individual's principal place of abode1 each day composing the temporary absence shall-- 7i7 be treated as a day at such individual's principal place of abode1 7ii7 be treated as satisfying the care requirement described in paragraph 7#b77;,c7 for each day described in clause 7i71 and 7iii7 not be treated as a day at any other location4 7,b7 ,temporary absence ,for purposes of subparagraph 7,a71 an absence shall be treated as temporary if-- 7i7 the individual would have resided at the place of abode but for the absence1 and 7ii7 under the facts and circumstances1 it is reasonable to assume that the individual will return to reside at the place of abode4 7#g7 ,special rule for divorced parents1 etc ,rules similar to the rules section #aeb7;e7 shall apply for purposes of this subsection4 7#h7 ,eligibility determined on basis of presumptive eligibility 7,a7 ,in general ,if a period of presumptive eligibility is established under section #gebg;,a7i7 for any individual with respect to any taxpayer-- 7i7 such individual shall be treated as the qualifying child of such taxpayer for any month in such period of presumptive eligibility1 and 7ii7 such individual shall not be treated as the qualifying child of any other taxpayer with respect to whom a period of presumptive eligibility has not been established for any such month4 7,b7 ,ability of credit claimants to establish presumptive eligibility ,nothing in section #gebg;,a7i7 shall be interpreted to preclude a taxpayer from establishing a period of presumptive eligibility 7including any such period described in section #gebg;,a7i77#b77;,d77 with respect to any qualifying child for purposes of this section solely because such taxpayer affirmatively elects not to receive monthly payments under section #gebg;,a4 4 7#b7 ,conforming amendments 7,a7 ,subsection 7a7 of section #bd of such ,code1 as amended by this section1 is further amended by striking for which the taxpayer is allowed a deduction under section #aea4 7,b7 ,the second sentence of paragraph 7#bf7 of section #eja7;c7 of such ,code is amended-- 7i7 by striking any qualifying child 7as defined in section #bd7;c77 and inserting any child1 and 7ii7 by inserting before the period the following3 1 but only in the case of a child who is a qualifying child 7as defined in section #aeb7;c77 of the individual who has not attained age #ag and who would be a dependent if subparagraph 7,a7 of section #aeb7;b77#c7 were applied without regard to all that follows resident of the ,united ,states4 7e7 ,fully refundable credit ,subsection 7d7 of section #bd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7d7 ,credit refundable ,if the taxpayer 7in the case of a joint return1 either spouse7 has a principal place of abode 7determined as provided in section #cb7 in the ,united ,states or ,puerto ,rico for more than of the taxable year1 the credit otherwise allowed under subsection 7a7 shall be allowed under subpart ,c 7and not allowed under this subpart74 4 7f7 ,restrictions on taxpayers who improperly claimed credit or improperly received advance payment 7#a7 ,in general ,subparagraph 7,a7 of section #bd7;g77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking this section and inserting this section 7and no payment shall be made under section #gebg;,a74 7#b7 ,conforming amendments 7,a7 ,subparagraph 7,b7 of section #bd7;g77#a7 of such ,code is amended-- 7i7 by striking this section both places it appears and inserting this section 7or payment received under section #gebg;,a71 7ii7 by striking and at the end of clause 7i71 7iii7 by striking the period at the end of clause 7ii7 and inserting 1 and1 and 7iv7 by adding at the end the following new clause3 7iii7 in addition to any period determined under clause 7i7 or 7ii7 7as the case may be71 the period beginning on the date of the final determination described in such clause and ending with the beginning of the period described in such clause4 4 7,b7 ,paragraph 7#b7 of section #bd7;g7 of such ,code is amended by striking no credit shall be allowed under this section and inserting no credit shall be allowed under this section 7and no payment shall be made under section #gebg;,a74 7,c7 ,subsection 7g7 of section #bd of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,coordination with possessions of the ,united ,states ,for purposes of this subsection1 a taxpayer's claim of credit under this section 7or payment received under section #gebg;,a7 includes a claim of credit under this section of the income tax law of any jurisdiction other than the ,united ,states 7or similar payment received under section #gebg;,a of such income tax law71 and a claim made or a payment received from ,american ,samoa pursuant to a plan described in subsection 7k77#c77;,b74 4 7g7 ,monthly advance payment of credit 7#a7 ,recapture of excess advance payments in certain circumstances ,subsection 7j7 of section #bd of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking subparagraph 7,b7 of paragraph 7#b71 7,b7 by striking ,excess advance payments4-- and all that follows through ,if and inserting ,excess advance payments4--,in the case of a taxpayer described in paragraph 7#c7 for any taxable year1 if1 and 7,c7 by adding at the end the following new paragraphs3 7#c7 ,taxpayers subject to recapture 7,a7 ,fraud or reckless or intentional disregard of rules and regulations ,a taxpayer is described in this paragraph with respect to any taxable year if the ,secretary determines that the excess described in paragraph 7#b7 with respect to the taxpayer for such taxable year was determined on the basis of fraud or a reckless or intentional disregard of rules and regulations4 7,b7 ,understatement of income2 changes in filing status ,if the excess described in paragraph 7#b7 with respect to the taxpayer for the taxable year was determined on the basis of an amount of the taxpayer's modified adjusted gross income which was less than the taxpayer's modified adjusted gross income for the applicable taxable year 7as defined in subsection 7b77-- 7i7 such taxpayer shall be treated as described in this paragraph1 and 7ii7 the increase determined under paragraph 7#b7 by reason of this subparagraph shall not exceed the excess of-- 7,i7 the aggregate amount of payments under section #gebg;,a to the taxpayer during the taxable year1 over 7,,ii7 the aggregate amount of payments which would have been so made if such payments had been determined on the basis of the taxpayer's modified adjusted gross income for the applicable taxable year 7as defined in subsection 7b774 ,a rule similar to the rule of the preceding sentence shall apply if the excess described in paragraph 7#b7 with respect to the taxpayer for the taxable year was determined on the basis of a filing status of the taxpayer which differs from the taxpayer's filing status for the applicable taxable year 7as so defined74 7,c7 ,payments made outside of period of presumptive eligibility ,if any payment described in paragraph 7#b7 with respect to the taxpayer for the taxable year was made with respect to a child for a month which was not part of a period of presumptive eligibility established under section #gebg;,a7i7 for such child with respect to such taxpayer-- 7i7 such taxpayer shall be treated as described in this paragraph1 and 7ii7 the increase determined under paragraph 7#b7 by reason of this subparagraph shall not exceed the portion of such payment so made4 7,d7 ,certain payments made after notice from ,secretary ,if the ,secretary notifies a taxpayer under section #gebg;,a7d7 that such taxpayer is subject to recapture with respect to any payments-- 7i7 such taxpayer shall be treated as described in this paragraph1 and 7ii7 the increase determined under paragraph 7#b7 by reason of this subparagraph shall not exceed the aggregate amount of such payments4 7,e7 ,taxpayers moving to another jurisdiction ,to minimize the amount of advance payments made under section #gebg;,a to ineligible individuals1 the ,secretary shall issue regulations or other guidance for purposes of this paragraph which apply with respect to taxpayers who are described in subsection 7d7 with respect to the reference month but are not so described with respect to #a or more months during the taxable year for which advance payments under section #gebg;,a are made4 7,f7 ,other circumstances to prevent abuse ,a taxpayer is described in this paragraph with respect to any taxable year pursuant to regulations or other guidance of the ,secretary describing other recapture circumstances to facilitate the administration and enforcement by the ,secretary of section #gebg;,a to minimize the amount of advance payments made under section #gebg;,a to ineligible individuals and to prevent abuse4 7#d7 ,joint returns ,except as otherwise provided by the ,secretary1 in the case of an advance payment made under section #gebg;,a with respect to a joint return1 half of such payment shall be treated as having been made to each individual filing such return4 7#e7 ,coordination with possessions of the ,united ,states ,for purposes of this subsection1 payments made under section #gebg;,a include payments made by any jurisdiction other than the ,united ,states under section #gebg;,a of the income tax law of such jurisdiction1 and advance payments made by ,american ,samoa pursuant to a plan described in subsection 7k77#c77;,b74 ,any increase in tax imposed on a taxpayer by reason of paragraph 7#b7 of the income tax law of a jurisdiction other than the ,united ,states shall be considered to reduce the aggregate amount of payments made to such taxpayer by such jurisdiction4 ,in carrying out this section1 the ,secretary shall coordinate with each possession of the ,united ,states to prevent any application of this paragraph that is inconsistent with the purposes of this subsection4 4 7h7 ,application of credit in possessions 7#a7 ,puerto ,rico ,paragraph 7#b7 of subsection 7k7 of section #bd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,cross references related to application of credit to residents of ,puerto ,rico 7,a7 ,for application of refundable credit to residents of ,puerto ,rico1 see subsection 7d74 7,b7 ,for application of advance payment to residents of ,puerto ,rico1 see section #gebg;,a7b77#a77;,a74 4 7#b7 ,american ,samoa ,paragraph 7#c7 of subsection 7k7 of section #bd of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking subsection 7i77#a7 in subparagraph 7,a7 and inserting subsection 7d71 7,b7 by striking subclause 7,,ii7 of subparagraph 7,c77ii71 and 7,c7 by striking under subparagraph 7,b7-- and all that follows through subsection 7i77#a7 in subparagraph 7,c77ii7 and inserting under subparagraph 7,b71 subsection 7d74 7i7 ,conforming amendments ,subsection 7h7 of section #bd of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking paragraphs 7#b71 7#c71 7#e71 and 7#f7 and redesignating paragraphs 7#d7 and 7#g7 as paragraphs 7#b7 and 7#c71 respectively1 7#b7 by striking paragraphs 7#b7 through 7#g7 in paragraph 7#a7 and inserting paragraphs 7#b7 and 7#c71 7#c7 by striking 7after the application of paragraph 7#b77 in subparagraph 7,a7 of paragraph 7#b71 as so redesignated1 and 7#d7 by striking paragraph 7#g7 in subparagraph 7,c7 of paragraph 7#b71 as so redesignated1 and inserting paragraph 7#c74 7j7 ,regulations ,section #bd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7l7 ,regulations ,the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance-- 7#a7 for determining whether an individual receives care from a taxpayer for purposes of subsection 7c77#a71 and 7#b7 to coordinate or modify the application of this section and section #gebg;,a in the case of any taxpayer-- 7,a7 whose filing status for a taxable year is different from the status used for determining one or more monthly payments under section #gebg;,a during such taxable year1 or 7,b7 whose principal place of abode for any year is different from the principal place of abode used for determining the monthly payment under section #gebg;,a for such year4 4 7k7 ,monthly advance payment of credit 7#a7 ,in general ,subsection 7a7 of section #gebg;,a of the ,internal ,revenue ,code of #aihf is amended by striking for making periodic payments and all that follows and inserting for making monthly payments to taxpayers equal to the monthly advance amount determined with respect to each such taxpayer for months occurring during the taxable year44 7#b7 ,monthly advance amount ,so much of subsection 7b7 of section #gebg;,a of such ,code as precedes paragraph 7#d7 thereof is amended to read as follows3 7b7 ,monthly advance amount ,for purposes of this section-- 7#a7 ,in general ,except as otherwise provided in this subsection1 the term monthly advance amount means1 with respect to any taxpayer for any calendar month1 the amount 7if any7 which is estimated by the ,secretary as being equal to the portion of the amount which would be treated as allowed under subpart ,c of part ,,iv of subchapter ,a of chapter #a for the taxable year under section #bd7;d7 by reason of such month being a qualifying month if-- 7,a7 the status of the taxpayer as a taxpayer described in section #bd7;d7 is determined with respect to the reference taxable year1 7,b7 the taxpayer's modified adjusted gross income for the taxable year is equal to the taxpayer's modified adjusted gross income for the reference taxable year1 7,c7 unless otherwise determined by the ,secretary based on any information known to the ,secretary1 the only qualifying children of such taxpayer for such month are the qualifying children of such taxpayer for the reference month1 and 7,d7 unless otherwise determined by the ,secretary based on any information known to the ,secretary1 the ages of such children 7and the status of such children as qualifying children7 are determined for such month by taking into account the passage of time since such reference month4 7#b7 ,reference taxable year2 reference month 7,a7 ,reference taxable year ,except as provided in paragraph 7#c77;,a71 the term reference taxable year means1 with respect to any taxpayer for any calendar month1 the taxpayer's taxable year beginning in the preceding calendar year or1 in the case of a taxpayer who did not file a return of tax for such taxable year1 the taxpayer's taxable year beginning in the second preceding calendar year4 7,b7 ,reference month ,the term reference month means1 with respect to any taxpayer for any calendar month1 the most recent of-- 7i7 the last month of the reference taxable year1 or 7ii7 the most recent calendar month1 in the case of a taxpayer who provides1 through a specified alternative mechanism1 information which is sufficient to estimate the taxpayer's monthly advance amount for such month4 7,c7 ,availability of information ,any month or year referred to in subparagraph 7,a7 or 7,b7 shall not be taken into account in determining the reference month or reference taxable year with respect to any calendar month unless all relevant information with respect to such month or year is available to the ,secretary and the ,secretary has adequate time to make estimates under this section on the basis of such information before the beginning of such calendar month4 7,d7 ,treatment of insufficient information ,except as otherwise provided by the ,secretary-- 7i7 if a taxpayer is not described in subparagraph 7,b77ii7 with respect to any calendar month and did not file a return of tax for either of the #b taxable years described in subparagraph 7,a7 with respect to such month1 the monthly advance amount with respect to such taxpayer for such calendar month shall be treated as zero unless the ,secretary determines that the ,secretary can make the estimate described in paragraph 7#a7 on the basis of information known to the ,secretary which the ,secretary determines is reasonably reliable1 and 7ii7 if the taxpayer is not described in subparagraph 7,b77ii7 and the information on the return of tax filed for either of the #b taxable years described in subparagraph 7,a7 does not establish the status of the taxpayer 7in the case of a joint return1 either spouse7 as having a principal place of abode 7determined as provided in section #cb7 in the ,united ,states or ,puerto ,rico for more than of the reference month1 the ,secretary shall determine such status based on information known to the ,secretary4 7,e7 ,specified alternative mechanism ,the term specified alternative mechanism means the on-line portal established under subsection 7c7 and any other mechanism or method established by the ,secretary to allow taxpayers to provide the information described in subsection 7c77#a7 7including in connection with the filing of any return of tax74 7#c7 ,modifications during calendar year 7,a7 ,in general ,the ,secretary may modify1 during any taxable year1 the monthly advance amount with respect to any taxpayer for any month occurring during such year to take into account-- 7i7 a return of tax filed by such taxpayer during such taxable year 7and the taxable year to which such return relates may be taken into account as the reference taxable year71 and 7ii7 any other information provided by the taxpayer to the ,secretary which allows the ,secretary to determine payments under subsection 7a7 which1 in the aggregate during any taxable year of the taxpayer1 more closely total the ,secretary's estimate of the amount treated as allowed under subpart ,c of part ,,iv of subchapter ,a of chapter #a by reason of section #bd7;d7 for such taxable year of such taxpayer4 7,b7 ,adjustment to reflect excess or deficit in prior payments ,in the case of any modification of the monthly advance amount under subparagraph 7,a71 the ,secretary may adjust the amount of any monthly payment made after the date of such modification to properly take into account the amount by which any monthly payment made before such date was greater than or less than the amount that such payment would have been on the basis of the monthly advance amount as so modified4 4 7#c7 ,on-line information portal ,subsection 7c7 of section #gebg;,a of such ,code is amended to read as follows3 7c7 ,on-,line information portal 7#a7 ,in general ,the ,secretary shall establish an on-line portal which allows taxpayers to-- 7,a7 subject to such restrictions as the ,secretary may provide1 elect to begin or cease receiving payments under this section1 and 7,b7 provide information to the ,secretary which is relevant in determining the monthly advance amount 7or any modification under subsection 7b77#c77;,b7 of such monthly advance amount7 and the taxpayer's eligibility for payments under this section1 including information regarding-- 7i7 the number of the taxpayer's qualifying children1 including a child born during the taxable year1 7ii7 the taxpayer's marital status1 7iii7 the taxpayer's modified adjusted gross income1 7iv7 the taxpayer's principal place of abode1 and 7v7 any other factor which the ,secretary may provide4 7#b7 ,availability in multiple languages ,the ,secretary shall ensure that the on-line portal described in paragraph 7#a7 is available in multiple languages4 4 7#d7 ,application of advance payments in possessions 7,a7 ,puerto ,rico ,subparagraph 7,a7 of section #gebg;,a7e77#d7 of such ,code is amended to read as follows3 7,a7 ,puerto ,rico 7i7 ,for application of child tax credit to residents of ,puerto ,rico1 see section #bd7;d74 7ii7 ,for application of monthly advance payments to residents of ,puerto ,rico1 see subsection 7b77#a77;,a74 4 7,b7 ,conforming amendments ,subparagraph 7,c7 of section #gebg;,a7e77#d7 of such ,code is amended by striking with respect to taxable years beginning in #bjba both places it appears in clauses 7i7 and 7ii7 and inserting with respect to any taxable year4 7#e7 ,administrative provisions 7,a7 ,in general ,subsection 7e7 of section #gebg;,a of such ,code is amended by adding at the end the following new paragraph3 7#e7 ,assignment of benefits 7,a7 ,in general ,the right of any person to any applicable payment shall not be transferable or assignable1 at law or in equity1 and no applicable payment shall be subject to1 execution1 levy1 attachment1 garnishment1 or other legal process1 or the operation of any bankruptcy or insolvency law4 7,b7 ,encoding of payments ,in the case of an applicable payment described in subparagraph 7,e77iii77,i7 that is paid electronically by direct deposit through the ,automated ,clearing ,house 7,,ach7 network1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall-- 7i7 issue the payment using a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as an applicable payment1 and 7ii7 further encode the payment pursuant to the same specifications as required for a benefit payment defined in section #bab4c of title #ca1 ,code of ,federal ,regulations4 7,c7 ,garnishment 7i7 ,encoded payments ,in the case of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph 7,b71 a financial institution shall follow the requirements and procedures set forth in part #bab of title #ca1 ,code of ,federal ,regulations1 except-- 7,i7 notwithstanding section #bab4d of title #ca1 ,code of ,federal ,regulations 7and except as provided in subclause 7,,ii771 a financial institution shall not fail to follow the procedures of sections #bab4e and #bab4f of such title with respect to a garnishment order merely because such order has attached1 or includes1 a notice of right to garnish federal benefits issued by a ,state child support enforcement agency1 and 7,,ii7 a financial institution shall not1 with regard to any applicable payment1 be required to provide the notice referenced in sections #bab4f and #bab4g of title #ca1 ,code of ,federal ,regulations4 7ii7 ,other payments ,in the case of a garnishment order 7other than an order that has been served by the ,united ,states7 that has been received by a financial institution and that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph 7,b7 has been deposited electronically on any date during the lookback period or into which an applicable payment that has been deposited by check on any date in the lookback period1 the financial institution1 upon the request of the account holder1 shall treat the amount of the funds in the account at the time of the request1 up to the amount of the applicable payment 7in addition to any amounts otherwise protected under part #bab of title #ca1 ,code of ,federal ,regulations71 as exempt from a garnishment order without requiring the consent of the party serving the garnishment order or the judgment creditor4 7iii7 ,liability ,a financial institution that acts in good faith in reliance on clauses 7i7 or 7ii7 shall not be subject to liability or regulatory action under any ,federal or ,state law1 regulation1 court or other order1 or regulatory interpretation for actions concerning any applicable payments4 7,d7 ,no reclamation rights ,this paragraph shall not alter the status of applicable payments as tax refunds or other nonbenefit payments for purpose of any reclamation rights of the ,department of the ,treasury or the ,internal ,revenue ,service as per part #baj of title #ca1 ,code of ,federal ,regulations4 7,e7 ,definitions ,for purposes of this paragraph-- 7i7 ,account holder ,the term account holder means a natural person whose name appears in a financial institution's records as the direct or beneficial owner of an account4 7ii7 ,account review ,the term account review means the process of examining deposits in an account to determine if an applicable payment has been deposited into the account during the lookback period4 ,the financial institution shall perform the account review following the procedures outlined in section #bab4e of title #ca1 ,code of ,federal ,regulations and in accordance with the requirements of section #bab4f of title #ca1 ,code of ,federal ,regulations4 7iii7 ,applicable payment ,the term applicable payment means-- 7,i7 any payment made to an individual under this section 7other than any payment made pursuant to paragraph 7#d771 7,,ii7 any advance payment made by a possession of the ,united ,states with a mirror code tax system 7as defined in section #bd7k77 pursuant to an election under paragraph 7#f77;,b7 which corresponds to a payment described in subclause 7,i71 and 7,,iii7 any advance payment made by ,american ,samoa pursuant to a program for making such payments which is described in paragraph 7#f77;,c77ii74 7iv7 ,garnishment ,the term garnishment means execution1 levy1 attachment1 garnishment1 or other legal process4 7v7 ,garnishment order ,the term garnishment order means a writ1 order1 notice1 summons1 judgment1 levy1 or similar written instruction issued by a court1 a ,state or ,state agency1 a municipality or municipal corporation1 or a ,state child support enforcement agency1 including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account1 to effect a garnishment against a debtor4 7vi7 ,lookback period ,the term lookback period means the two month period that begins on the date preceding the date of account review and ends on the corresponding date of the month two months earlier1 or on the last date of the month two months earlier if the corresponding date does not exist4 4 7,b7 ,application of certain rules2 extension ,subsection 7f7 of section #gebg;,a of such ,code is amended to read as follows3 7f7 ,application of certain definitions and rules applicable to child tax credit 7#a7 ,definitions ,except as otherwise provided in this section1 terms used in this section which are also used in section #bd shall have the same respective meanings as when used in section #bd4 7#b7 ,identification requirements ,rules similar to the rules which apply under subsections 7e7 and 7h77#c7 shall apply for purposes of this section except that such rules shall apply with respect to the return of tax for the reference taxable year or1 in the case of information provided through a specified alternative mechanism1 with respect to the information provided through such mechanism4 7#c7 ,restrictions on taxpayers who improperly claimed credit or received monthly advance child payments ,for restrictions on taxpayers who improperly claimed credit or received monthly advance child payments1 see section #bd7;g74 4 7#f7 ,notice rule ,subsection 7d7 of section #gebg;,a of such ,code is amended by adding at the end the following3 ,in the case of any payments made to a taxpayer which the ,secretary has determined are subject to recapture1 the notice provided under paragraph 7#a7 to such taxpayer shall include the amount of such payments44 7#g7 ,notification of certain events ,section #gebg;,a of such ,code is amended by redesignating subsection 7g7 as subsection 7h7 and by inserting after subsection 7f7 the following new subsection3 7k7 ,notification of certain events ,with respect to any taxpayer receiving monthly payments under this section with respect to any qualifying child1 the ,secretary shall1 to the maximum extent practicable1 provide reasonable advance notice of each of the following3 7#a7 ,any month with respect to which such monthly payment will increase 7relative to the preceding month7 by reason of an inflation adjustment under section #bd7;i74 7#b7 ,any month with respect to which such monthly payment will be reduced 7relative to the preceding month7 by reason of such child ceasing to be a qualifying child by reason of attaining age #ah during the taxable year4 7#c7 ,in the case of a taxpayer with a qualifying child to whom the #cjj amount under section #bd7;a7 7as adjusted under section #bd7;i77 applies1 any month with respect to which such monthly payment will be reduced by reason of such child attaining age #f4 4 7#h7 ,conforming amendment ,subsection 7h7 of section #gebg;,a of such ,code1 as redesignated by paragraph 7#g71 is amended by striking subsections 7i77#a7 and 7j7 and inserting subsections 7d7 and 7j74 7#i7 ,presumptive eligibility ,section #gebg;,a of such ,code1 as amended by paragraph 7#g71 is further amended by adding at the end the following new subsection3 7i7 ,presumptive eligibility 7#a7 ,in general ,an individual shall be treated as a qualifying child of a taxpayer for purposes of determining any monthly payment under this section only if such month is part of the period of presumptive eligibility determined by the ,secretary under this subsection with respect to such qualifying child and such taxpayer 7determined by treating the month described in subclause 7,i7 of paragraph 7#b77;,a77ii7 as being the first month beginning after the determination described in such subclause74 7#b7 ,period of presumptive eligibility ,for purposes of this section-- 7,a7 ,in general ,except as otherwise provided by the ,secretary1 the term period of presumptive eligibility means the period-- 7i7 beginning with the month for which presumptive eligibility is established1 and 7ii7 ending with the earliest of-- 7,i7 the beginning of the month described in clause 7i7 if the ,secretary determines that the taxpayer committed fraud or intentionally disregarded rules or regulations in establishing or maintaining presumptive eligibility1 7,,ii7 in the case of any notification from the ,secretary that the period of presumptive eligibility has been terminated or suspended by reason of any question regarding eligibility of the taxpayer for monthly payments with respect to such child1 the month specified in such notice as the month on which such termination or suspension begins1 and 7,,iii7 the month following any failure of the taxpayer to make the required annual renewal of presumptive eligibility by such date as the ,secretary may provide4 7,b7 ,establishing presumptive eligibility ,a taxpayer shall establish presumptive eligibility with respect to any qualifying child for any month at such time and in such manner as the ,secretary may provide4 ,except as otherwise provided by the ,secretary1 in order to establish a period of presumptive eligibility the taxpayer must express a reasonable expectation and intent that the taxpayer will continue to be eligible with respect to such qualifying child for at least the #b months following the month for which presumptive eligibility is to be established4 7,c7 ,method of establishing presumptive eligibility ,the ,secretary shall ensure information to establish presumptive eligibility under this paragraph may be provided on the return of tax for the taxable year ending before the calendar year which includes the month for which such eligibility is to be established1 through the on-line portal described in subsection 7c71 or in such other manner as the ,secretary may provide4 7,d7 ,inclusion of automatic grace periods and periods of hardship ,the period of presumptive eligibility shall include any period to which subparagraph 7,a7 or 7,b7 of paragraph 7#e7 applies4 7,e7 ,eligibility for birth or death of child ,the ,secretary shall issue regulations or other guidance to establish procedures pursuant to which1 to the maximum extent administratively practicable-- 7i7 with respect to a child born during a calendar month-- 7,i7 a parent of such child is treated as automatically establishing presumptive eligibility with respect to such child1 7,,ii7 the period of such automatic presumptive eligibility is determined1 and 7,,iii7 the first monthly payment is adjusted to be equal to the sum of the monthly advance amounts which would have been paid with respect to the child for months occurring during the calendar year if the child had been born in the preceding calendar year1 and 7ii7 with respect to a child who dies during a calendar month-- 7,i7 the taxpayer with respect to whom the child was a qualifying child for the last month the child was alive is treated as having established presumptive eligibility with respect to such child1 7,,ii7 the period of such presumptive eligibility ends with the last day of the calendar year in which the child died1 and 7,,iii7 the monthly payments for the remainder of such calendar year are determined and paid as if the child were alive4 7,f7 ,presumptive eligibility based on certain government programs ,the ,secretary shall issue regulations or other guidance to establish procedures under which-- 7i7 based on information provided to the ,secretary by #a or more government entities1 a parent or specified relative of a child is treated as automatically establishing presumptive eligibility with respect to such child1 and 7ii7 the period for which such automatic presumptive eligibility is determined 7including any additional circumstances under which such period will terminate74 7,g7 ,coordination with presumption ,for purposes of determining the status of any individual as a qualifying child for purposes of determining presumptive eligibility with respect to any period1 section #bd7;c7 shall be applied without regard to paragraph 7#h7 thereof4 7#c7 ,notice of termination of presumptive eligibility by reason of failure to make annual renewal ,if a taxpayer's period of presumptive eligibility with respect to any qualifying child terminates by reason of paragraph 7#b77;,a77ii77,,iii71 the ,secretary shall provide the taxpayer a written notice of such termination4 7#d7 ,qualifying child of more than #a taxpayer 7,a7 ,in general ,in the event that 7without regard to this subparagraph7 a period of presumptive eligibility with respect to the same qualifying child would exist for more than #a taxpayer at the same time-- 7i7 except as otherwise provided in this section or by the ,secretary1 a period of presumptive eligibility shall exist only with respect to the taxpayer with the most recent reference taxable year1 7ii7 the ,secretary shall establish procedures under which the ,secretary expeditiously adjudicates taxpayers' competing claims of presumptive eligibility with respect to the same child1 and 7iii7 the ,secretary shall notify any taxpayer of the termination of a period of presumptive eligibility pursuant to this paragraph4 7,b7 ,provisions related to adjudication 7i7 ,expedited process2 appeals ,the procedures established under subparagraph 7,a77ii7 shall include-- 7,i7 an expedited process for taxpayers who meet such requirements as the ,secretary may establish for such expedited process1 and 7,,ii7 procedures for adjudicating an appeal of an adverse decision4 7ii7 ,information receipt and coordination ,the ,secretary may enter into agreements to receive information from1 and otherwise coordinate with-- 7,i7 ,federal agencies 7including the ,social ,security ,administration and the ,department of ,agriculture71 7,,ii7 any ,state1 local government1 ,tribal government1 or possession of the ,united ,states1 and 7,,iii7 any other individual or entity that the ,secretary determines to be appropriate for purposes of adjudicating a competing claim described in subparagraph 7,a74 7iii7 ,adjudication not treated as assessment ,an adjudication under the procedures established under subparagraph 7,a77ii7 7including the adjudication of any appeal7 shall not be treated as an assessment described in section #fbja4 7iv7 ,adjudication not treated as inspection of taxpayer's books of account ,the inspection of a taxpayer's books of account in connection with any adjudication under the procedures established under subparagraph 7,a77ii7 7including the adjudication of any appeal7 shall not be treated as an examination or inspection of a taxpayer's books of account for purposes of section #gfje7;b74 7,c7 ,retroactive payments ,if1 pursuant to the procedures established under subparagraph 7,a77ii71 the ,secretary determines that a child is a qualifying child of a taxpayer and the ,secretary did not make payments to such taxpayer with respect to such child for any portion of the period during which the determination was made1 the ,secretary may make a one-time payment to the taxpayer with respect to which such child is the qualifying child in an amount equal to the aggregate amount by which the monthly payments to such taxpayer would have increased during such period if such determination had been made immediately4 7,d7 ,recapture of payments ,if1 pursuant to the procedures established under subparagraph 7,a77ii71 the ,secretary makes payments with respect to the child during the period during which the determination is made-- 7i7 the ,secretary shall provide each taxpayer which receives such payments notice that such payments may be subject to recapture1 and 7ii7 upon making such determination1 the ,secretary shall determine on the basis of the facts and circumstances of each such taxpayer whether any such payments should be subject to recapture and shall so notify each such taxpayer4 7#e7 ,rules related to grace periods and hardships 7,a7 ,automatic grace period 7i7 ,in general ,notwithstanding paragraph 7#d71 in the case of any failure or delay in establishing a period of presumptive eligibility with respect to which the taxpayer elects the application of this clause1 credit under section #bd or retroactive payment under this section 7similar to the payment described in paragraph 7#d77;,c77 shall be allowed or made with respect to so much of the period of such failure or delay as does not exceed #c months4 ,the preceding sentence shall not apply if the ,secretary determines that such failure or delay was due to fraud or reckless or intentional disregard of rules and regulations4 7ii7 ,limitation ,clause 7i7 shall not apply with respect to any taxpayer more than once during any #cf-month period4 7,b7 ,hardship ,notwithstanding paragraph 7#d71 if the ,secretary determines that a failure or delay in establishing a period of presumptive eligibility with respect to any qualifying child was due to domestic violence1 serious illness1 natural disaster1 or any other hardship1 credit under section #bd or retroactive payment under this section 7similar to the payment described in paragraph 7#d77;,c77 shall be allowed or made with respect to so much of the period of such failure or delay as does not exceed #f months4 4 7l7 ,disclosure of information relating to advance payment of child tax credit ,section #fajc7;e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ab7 ,disclosure of information relating to advance payment of child tax credit 7,a7 ,joint filers ,in the case of an individual to whom the ,secretary makes payments under section #gebg;,a1 if the reference taxable year 7as defined in section #gebg;,a7b77#b77;,a77 that the ,secretary uses to calculate such payments is a year for which the individual filed an income tax return jointly with another individual1 the ,secretary may disclose to such individual any information which is relevant in determining the payment under section #gebg;,a and the individual's eligibility for such payment1 including information regarding any of the following3 7i7 ,the number of qualifying children1 including a child born during the taxable year4 7ii7 ,the name and ,,tin of qualifying children4 7iii7 ,marital status4 7iv7 ,modified adjusted gross income4 7v7 ,principal place of abode4 7vi7 ,any other factor which the ,secretary may provide pursuant to section #gebg;,a7c74 7,b7 ,competing claimants ,in the case of an individual who has a competing claim of presumptive eligibility with respect to a qualifying child under section #gebg;,a7i77#d77;,a71 the ,secretary may disclose to such individual return information provided by another individual who has a competing claim of presumptive eligibility with respect to the same qualifying child in the course of the ,secretary's adjudication of that competing claim1 as well as any other information considered by the ,secretary with respect to that competing claim4 ,such information shall be limited to the items specified in subparagraph 7,a7 and the following3 7i7 ,information received under any agreements or coordination the ,secretary entered into with-- 7,i7 any ,state1 local government1 ,tribal government1 or possession of the ,united ,states1 or 7,,ii7 any other individual or entity that the ,secretary determines to be appropriate for purposes of adjudicating a competing claim4 7ii7 ,information considered by the ,secretary about where and with whom the child resided4 7iii7 ,information considered by the ,secretary about expenditures made by the claimants to the extent such payments relate to the competing claim4 4 7m7 ,additional conforming amendments 7#a7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by striking subsections 7d7 and 7i77#a7 and inserting subsection 7d74 7#b7 ,section #fdbh7;g77#c77;,a7 of such ,code is amended by striking #bd7;h77#g7 and inserting #bd7;h77#c74 7#c7 ,section #fdbh;,a7g77#d7 of such ,code is amended by striking #bd7;h77#g7 and inserting #bd7;h77#c74 7n7 ,effective dates ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbc4