,,ii #aaith ,,congress #b;d ,session ,s4 #djdb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #aj1 #bjbf ,mr4 ,booker 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 increase the standard deduction1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,keep ,your ,pay ,act4 7b7 ,amendment of #aihf code ,except as otherwise expressly provided1 whenever in this ,act an amendment is expressed in terms of an amendment to a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,,title ,i--,increase in standard deduction and top tax rates ,sec4 #aja4 ,increased standard deduction4 ,sec4 #ajb4 ,increase in income tax rates for highest earners4 ,,title ,,ii--,tax ,cuts for ,workers and ,families ,sec4 #bja4 ,permanent extension of earned income credit rules for individuals without qualifying children4 ,sec4 #bjb4 ,application of earned income credit to possessions of the ,united ,states4 ,sec4 #bjc4 ,election to use prior year earned income4 ,sec4 #bjd4 ,establishment of refundable child tax credit with monthly advance payment4 ,i ,increase in standard deduction and top tax rates #aja4 ,increased standard deduction 7a7 ,in general ,section #fc7;c7 is amended-- 7#a7 in paragraph 7#g71 in the matter preceding subparagraph 7,a71 by striking ,in the case and inserting ,subject to paragraph 7#h71 in the case1 and 7#b7 by adding at the end the following new paragraph3 7#h7 ,temporary increase in standard deduction ,in the case of a taxable year beginning after ,december #ca1 #bjbe1 and before ,january #a1 #bjcf1 paragraph 7#g7 shall be applied-- 7,a7 by substituting #ef1bej for #bc1fbe each place it appears1 7,b7 by substituting #cg1ejj for #ae1gej each place it appears1 and 7,c7 in subparagraph 7,b7-- 7i7 by substituting #bjbf for #bjbe1 and 7ii7 by substituting #bjbe for #bjbd4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #ajb4 ,increase in income tax rates for highest earners 7a7 ,in general ,section #a7;j7 is amended-- 7#a7 in paragraph 7#a71 by striking paragraphs 7#b7 through 7#f7 and inserting paragraphs 7#b7 through 7#g71 and 7#b7 by adding at the end the following new paragraph3 7#g7 ,temporary increase in rates for highest earners ,in the case of a taxable year beginning after ,december #ca1 #bjbe1 and before ,january #a1 #bjcf1 paragraph 7#b7 shall be applied-- 7,a7 by substituting #da for #ce each place it appears1 and 7,b7 by substituting #dc for #cg each place it appears4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 ,,ii ,tax ,cuts for ,workers and ,families #bja4 ,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 is amended by striking age #be and inserting the applicable minimum age4 7#b7 ,applicable minimum age ,paragraph 7#a7 of section #cb7;c7 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 student 7as defined in section #aeb7;f77#b771 other than a qualified former foster youth or a qualified homeless youth1 age #bd1 and 7,,iii7 in the case of a qualified former foster youth or a qualified homeless youth1 age #ah4 7ii7 ,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 7iii7 ,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 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 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 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 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 #bjbf1 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 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 #bjbe1 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 is amended by striking subsection 7n74 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #bjb4 ,application of earned income credit to possessions of the ,united ,states 7a7 ,puerto ,rico ,subparagraph 7,b7 of section #gecj7;a77#a7 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 is amended by striking in the case of calendar years #bjba through #bjbe14 7c7 ,american ,samoa ,subparagraph 7,b7 of section #gecj7;c77#a7 is amended by striking in the case of calendar years #bjba through #bjbe14 #bjc4 ,election to use prior year earned income 7a7 ,in general ,paragraph 7#b7 of section #cb7;c7 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 #bjbe4 #bjd4 ,establishment of refundable child tax credit with monthly advance payment 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by inserting after section #bd the following new sections3 #bd;,a4 ,monthly child tax credit 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the sum of the monthly specified child allowances determined with respect to the taxpayer under subsection 7b7 for each calendar month during such taxable year4 7b7 ,monthly specified child allowance 7#a7 ,in general ,for purposes of this section1 the term monthly specified child allowance means1 with respect to any taxpayer for any calendar month1 the sum of-- 7,a7 #cjj1 with respect to each specified child of such taxpayer who will 7as of the close of such month7 have attained age #f1 plus 7,b7 #abj percent of the dollar amount in effect for such month under subparagraph 7,a71 with respect to each specified child of such taxpayer who will not 7as of the close of such month7 have attained age #f4 ,in the case of any specified child of such taxpayer who will not 7as of the close of such month7 have attained the age of #a month1 subparagraph 7,b7 shall be applied by substituting #hjj percent for #abj percent4 7#b7 ,limitations based on modified adjusted gross income 7,a7 ,initial reduction ,the monthly specified child allowance otherwise determined under paragraph 7#a7 with respect to any taxpayer for any calendar month shall be reduced 7but not below zero7 by #a_/ab of #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 monthly specified child allowance with respect to the taxpayer for such calendar month 7determined without regard to this paragraph71 over 7,,ii7 the amount which would be determined under subclause 7,i7 if the dollar amounts in effect under subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 were each equal to #aff4fg1 or 7ii7 #a_/ab of #e percent of the excess of the secondary threshold amount over the initial threshold amount4 7,c7 ,secondary reduction ,the monthly specified child allowance otherwise determined under paragraph 7#a7 with respect to any taxpayer for such calendar month 7determined after the application of subparagraphs 7,a7 and 7,b77 shall be reduced 7but not below zero7 by #a_/ab of #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,d7 ,definitions related to limitations based on modified adjusted gross income ,for purposes of this paragraph-- 7i7 ,initial threshold amount ,the term initial threshold amount means-- 7,i7 #aej1jjj1 in the case of a joint return or surviving spouse 7as defined in section #b7;a771 7,,ii7 #a_/b the dollar amount in effect under subclause 7,i71 in the case of a married individual filing a separate return1 and 7,,iii7 #aab1ejj1 in any other case4 7ii7 ,secondary threshold amount ,the term secondary threshold amount means-- 7,i7 #djj1jjj1 in the case of a joint return or surviving spouse 7as defined in section #b7;a771 7,,ii7 #bjj1jjj1 in the case of a married individual filing a separate return1 and 7,,iii7 #cjj1jjj1 in any other case4 7iii7 ,applicable taxable year ,the term applicable taxable year means1 with respect to any taxable year for which the credit under this section is determined-- 7,i7 such taxable year1 or 7,,ii7 if the taxpayer elects the application of this subclause 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 7iv7 ,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 7#c7 ,inflation adjustments 7,a7 ,monthly specified child allowance ,in the case of any month beginning after ,december #ca1 #bjbf1 the #cjj amount in paragraph 7#a77;,a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by-- 7ii7 the percentage 7if any7 by which-- 7,i7 the ,,cpi 7as defined in section #a7;f77#d77 for the calendar year preceding the calendar year in which such month begins1 exceeds 7,,ii7 the ,,cpi 7as so defined7 for calendar year #bjbe4 7,b7 ,initial threshold amount ,in the case of any taxable year beginning after ,december #ca1 #bjbe1 the dollar amounts in subclauses 7,i7 and 7,,iii7 of paragraph 7#b77;,d77i7 shall each be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the percentage 7if any7 which would be determined under subparagraph 7,a77ii7 if subclause 7,,ii7 thereof were applied by substituting #bjbc for #bjbe4 7,c7 ,rounding 7i7 ,monthly specified child allowance ,any increase under subparagraph 7,a7 which is not a multiple of #aj shall be rounded to the nearest multiple of #aj4 7ii7 ,initial threshold amount ,any increase under subparagraph 7,b7 which is not a multiple of #e1jjj shall be rounded to the nearest multiple of #e1jjj4 7c7 ,specified child ,for purposes of this section-- 7#a7 ,in general ,the term specified child means1 with respect to any taxpayer for any calendar month1 an individual-- 7,a7 who has the same principal place of abode as the taxpayer for more than one-half of such month1 7,b7 who is younger than the taxpayer and will not1 as of the close of such month1 have attained age #ah1 7,c7 who receives care from the taxpayer during such month that is not compensated1 7,d7 who is not the spouse of the taxpayer at any time during such month1 and 7,e7 who 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 such individual is a legally adopted individual of such taxpayer or is lawfully placed with such taxpayer for legal adoption by such taxpayer4 7#b7 ,certain individuals ineligible ,in the case of an individual who is a specified child with respect to another taxpayer for any calendar month1 such individual shall be treated for such calendar month as having no specified children4 7#c7 ,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#a77;,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#a77;,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#d7 ,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 specified child of #b or more taxpayers for any month1 such individual shall be treated as the specified child only of the taxpayer who is-- 7i7 the parent of the individual 7or1 if such individual would 7but for this paragraph7 be a specified 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 specified 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 specified child of any parent of the individual nor a specified 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 specified child of #b or more parents of the individual for any month1 such child shall be treated only as the specified 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 specified child1 7ii7 a brother or sister of a parent of the specified child1 or 7iii7 a brother1 sister1 stepbrother1 or stepsister of the specified 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 specified 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 specified 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 any taxable year which includes such month 7determined without regard to any parent with respect to whom such individual is not a specified 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 specified 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 any 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 specified 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 with respect to any month1 the adjusted gross income of each person who files a joint return for the taxable year which includes such month 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#e7 ,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#a77;,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#f7 ,special rule for divorced parents1 etc ,rules similar to the rules section #aeb7;e7 shall apply for purposes of this subsection4 7#g7 ,eligibility determined on basis of presumptive eligibility 7,a7 ,in general ,if a period of presumptive eligibility is established under section #gebg;,a7c7 with respect to any taxpayer and child-- 7i7 such child shall be treated as the specified child of such taxpayer for any month in such period of presumptive eligibility1 and 7ii7 such child shall not be treated as the specified 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;,a7c7 shall be interpreted to preclude a taxpayer from establishing a period of presumptive eligibility 7including any period described in subparagraph 7,d7 with respect to which payment could be made7 with respect to any specified child for purposes of this section solely because such taxpayer affirmatively elects not to receive monthly advance child payments under section #gebg;,a4 7,c7 ,exception for income-based tie-breaker rules ,if a period of presumptive eligibility is established under section #gebg;,a7c7 for any individual with respect to any taxpayer and such individual is not the specified child of such taxpayer for any month in such period by reason of such taxpayer failing to be described in clause 7i71 7ii71 or 7iii7 of paragraph 7#d77;,a7 for the taxable year which includes such month1 subparagraph 7,a7 shall not apply with respect to such month4 7,d7 ,treatment of certain retroactive payments ,if any payment is made under subparagraph 7,a7 or 7,b7 of section #gebg;,a7f77#c7 or paragraph 7#a7 or 7#b7 of section #gebg;,a7g71 with respect to any taxpayer and child for any period1 such period shall be treated as a period of presumptive eligibility established under section #gebg;,a7c7 with respect to such taxpayer and child for purposes of applying subparagraph 7,a74 7,e7 ,fraud and intentional disregard of rules or regulations ,if the ,secretary determines that the taxpayer committed fraud or intentionally disregarded rules or regulations in establishing or maintaining any period of presumptive eligibility1 the months with respect to which such fraud or intentional disregard relates shall not be treated as a period of presumptive eligibility for purposes of subparagraph 7,a74 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 one-half of any calendar month during the taxable year1 so much of the credit otherwise allowed under subsection 7a7 as is attributable to monthly specified child allowances with respect to any such calendar month shall be allowed under subpart ,c 7and not allowed under this subpart74 7e7 ,identification requirements 7#a7 ,qualifying child 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 and such taxpayer identification number was issued on or before the due date for filing such return4 7#b7 ,taxpayer identification requirement ,no credit shall be allowed under this section if the taxpayer identification number of the taxpayer was issued after the due date for filing the return for the taxable year4 7f7 ,restrictions on taxpayers who improperly claimed credit or improperly received monthly advance child payment 7#a7 ,taxpayers making prior fraudulent or reckless claims 7,a7 ,in general ,no credit shall be allowed under this section for any taxable year 7and no payment shall be made under section #gebg;,a for any month7 in the disallowance period4 7,b7 ,disallowance period ,for purposes of subparagraph 7,a71 the disallowance period is-- 7i7 the period of #abj calendar months after the most recent calendar month for which there was a final determination that the taxpayer's claim of credit under this section or section #bd 7or payment received under section #gebg;,a7 was due to fraud1 and 7ii7 the period of #bd calendar months after the most recent calendar month for which there was a final determination that the taxpayer's claim of credit under this section or section #bd 7or payment received under section #gebg;,a7 was due to reckless or intentional disregard of rules and regulations 7but not due to fraud74 7#b7 ,taxpayers making improper prior claims ,in the case of a taxpayer who is denied credit under this section or section #bd for any taxable year as a result of the deficiency procedures under subchapter ,b of chapter #fc1 no credit shall be allowed under this section for any subsequent taxable year 7and no payment shall be made under section #gebg;,a for any subsequent month7 unless the taxpayer provides such information as the ,secretary may require to demonstrate eligibility for such credit4 7#c7 ,coordination with possessions of the ,united ,states ,for purposes of this subsection1 a taxpayer's claim of credit under this section or section #bd 7or payment received under section #gebg;,a7 includes a claim of credit under this section or section #bd 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 7h77#c77;,b7 or section #bd7k77#c77;,b74 7g7 ,reconciliation of credit and monthly advance child payments 7#a7 ,in general ,the amount otherwise determined under subsection 7a7 with respect to any taxpayer for any taxable year shall be reduced 7but not below zero7 by the aggregate amount of payments made under section #gebg;,a to such taxpayer for one or more calendar months in such taxable year4 ,any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section #fbac7;b77#a74 7#b7 ,increase in tax equal to excess advance payments in certain circumstances ,if the aggregate amount of payments made to the taxpayer under section #gebg;,a for one or more calendar months in such taxable year exceeds the amount allowed as a credit under subpart ,c by reason of this section with respect to such taxpayer for such taxable year 7without regard to paragraph 7#a7 of this subsection71 the tax imposed by this chapter for such taxable year shall be increased by so much of such excess as is attributable to one or more of the following3 7,a7 ,fraud1 or reckless or intentional disregard of rules and regulations1 by the taxpayer4 7,b7 ,changes in the taxpayer's modified adjusted gross income or filing status that affect the application of the limitation imposed by subsection 7b77#b74 7,c7 ,payments under section #gebg;,a which were made for months which were not part of a period of presumptive eligibility4 7,d7 ,a failure to be the taxpayer described in clause 7i71 7ii71 or 7iii7 of subsection 7c77#d77;,a74 7,e7 ,a failure to satisfy the requirements of subsection 7d74 7,f7 ,a failure to satisfy the requirements of paragraphs 7#a7 or 7#b7 of subsection 7e71 except that a failure to satisfy the requirements of subsection 7e77#a7 shall not be taken into account under this subparagraph if the taxpayer demonstrates to the satisfaction of the ,secretary that it is reasonable to expect that the qualifying child will be issued a taxpayer identification number and that the delay in such issuance was due to reasonable cause and not willful neglect4 7,g7 ,such other circumstances as the ,secretary identifies for purposes of this subparagraph to facilitate the administration and enforcement by the ,secretary of section #gebg;,a1 to minimize the amount of advance payments made under section #gebg;,a to ineligible individuals1 and to prevent abuse4 7,h7 ,payments subject to treatment as excess advance payments after notice under section #gebg;,a7j77#b74 7#c7 ,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#d7 ,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 7h77#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 7h7 ,application of credit in possessions 7#a7 ,mirror code possessions 7,a7 ,in general ,the ,secretary shall pay to each possession of the ,united ,states with a mirror code tax system amounts equal to the loss 7if any7 to that possession by reason of the application of this section 7determined without regard to this subsection7 with respect to taxable years beginning in calendar years after #bjbe4 ,such amounts shall be determined by the ,secretary based on information provided by the government of the respective possession4 7,b7 ,coordination with credit allowed against ,united ,states income taxes ,no credit shall be allowed under this section for any taxable year to any individual to whom a credit is allowable against taxes imposed by a possession of the ,united ,states with a mirror code tax system by reason of the application of this section in such possession for such taxable year4 7,c7 ,mirror code tax system ,for purposes of this paragraph1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the ,united ,states as if such possession were the ,united ,states4 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#e74 7#c7 ,american ,samoa 7,a7 ,in general ,the ,secretary shall pay to ,american ,samoa amounts estimated by the ,secretary as being equal to the aggregate benefits that would have been provided to residents of ,american ,samoa by reason of the application of this section for taxable years beginning in calendar years after #bjbe if the provisions of this section had been in effect in ,american ,samoa 7applied as if ,american ,samoa were the ,united ,states and without regard to the application of this section to residents of ,puerto ,rico under subsection 7d774 7,b7 ,distribution requirement ,subparagraph 7,a7 shall not apply unless ,american ,samoa has a plan1 which has been approved by the ,secretary1 under which ,american ,samoa will promptly distribute such payments to its residents4 7,c7 ,coordination with credit allowed against ,united ,states income taxes 7i7 ,in general ,in the case of a taxable year with respect to which a plan is approved under subparagraph 7,b71 this section 7other than this subsection7 shall not apply to any individual eligible for a distribution under such plan4 7ii7 ,application of section in event of absence of approved plan ,in the case of a taxable year with respect to which a plan is not approved under subparagraph 7,b71 subsection 7d7 shall be applied by substituting 1 ,puerto ,rico1 or ,american ,samoa for or ,puerto ,rico4 7#d7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 7i7 ,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#a77;,c71 and 7#b7 to coordinate or modify the application of this section1 section #bd1 and section #gebg;,a in the case of any taxpayer-- 7,a7 whose taxable year is other than a calendar year1 7,b7 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,c7 whose principal place of abode for any month is different from the principal place of abode used for determining the monthly payment under section #gebg;,a for such month4 #bd;,b4 ,credit for certain other dependents 7a7 ,in general ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #ejj with respect to each specified dependent of such taxpayer for such taxable year4 7b7 ,limitation based on modified adjusted gross income 7#a7 ,in general ,the amount of the credit allowable under subsection 7a7 shall be reduced 7but not below zero7 by #ej for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income exceeds the threshold amount4 7#b7 ,threshold amount ,for purposes of this subsection1 the term threshold amount means-- 7,a7 #djj1jjj1 in the case of a joint return or surviving spouse 7as defined in section #b7;a771 7,b7 #bjj1jjj1 in the case of a married individual filing a separate return1 and 7,c7 #cjj1jjj1 in any other case4 7#c7 ,modified adjusted gross income ,for purposes of this subsection1 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7c7 ,specified dependent ,for purposes of this section1 the term specified dependent means1 with respect to any taxpayer for any taxable year1 any dependent of such taxpayer 7as defined in section #aeb7 for such taxable year unless such dependent-- 7#a7 is a specified child of the taxpayer1 or any other taxpayer1 for any month during such taxable year1 or 7#b7 would not 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 7d7 ,special rule for taxable year child attains age #ah ,if any dependent of the taxpayer attains age #ah during the taxable year-- 7#a7 whether such dependent is a specified dependent shall be determined without regard to paragraph 7#a7 of subsection 7c71 and 7#b7 with respect to such dependent1 subsection 7a7 shall be applied by substituting an amount for #ejj that bears the same ratio to #ejj as-- 7,a7 the excess of-- 7i7 #ab1 over 7ii7 the number of months during such taxable year with respect to which such dependent is a specified child of the taxpayer or any other taxpayer1 bears to 7,b7 #ab4 7e7 ,identification requirements ,rules similar to the rules of section #bd;,a7e7 shall apply for purposes of this section4 7f7 ,taxable year must be full taxable year ,except in the case of a taxable year closed by reason of the death of the taxpayer1 no credit shall be allowable under this section in the case of a taxable year covering a period of less than #ab months4 7g7 ,regulations ,the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary or appropriate to carry out the purposes of this section4 4 7b7 ,monthly payment of child tax credit ,section #gebg;,a is amended to read as follows3 #gebg;,a4 ,monthly payments of child tax credit 7a7 ,in general ,the ,secretary shall pay to each taxpayer1 during each calendar month which is during a period of presumptive eligibility with respect to the taxpayer and any child1 an amount equal to the monthly advance child payment determined with respect to such taxpayer for such month4 7b7 ,monthly advance child payment ,the term monthly advance child payment 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 monthly specified child allowance which would be determined under section #bd;,a7b7 with respect to such taxpayer for such calendar month if-- 7#a7 the only specified children of such taxpayer for such calendar month are the specified children of such taxpayer for the reference month 7determined without regard to section #bd;,a7c77#g771 7#b7 the ages of such children 7and the status of such children as specified children7 are determined for such calendar month by taking into account the passage of time since such reference month1 7#c7 each child is only taken into account as a specified child for such calendar month if such calendar month is during a period of presumptive eligibility with respect to the taxpayer and such child1 7#d7 the limitations of section #bd;,a7b77#b7 were applied with respect to the reference taxable year rather than with respect to the applicable taxable year1 and 7#e7 no monthly specified child allowance were determined with respect to such taxpayer for such calendar month unless 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 one-half of the reference month4 7c7 ,period of presumptive eligibility 7#a7 ,in general ,for purposes of this section1 the term period of presumptive eligibility means1 with respect to any taxpayer and any child1 the period-- 7,a7 beginning with the calendar month following the calendar month during which the taxpayer provides the ,secretary with sufficient information for the ,secretary to-- 7i7 determine that such child was a specified child of the taxpayer for the reference month 7determined without regard to section #bd;,a7c77#g771 and 7ii7 estimate the monthly advance child payment for such calendar month1 and 7,b7 ending with the earliest of-- 7i7 the month beginning immediately after the month on which the ,secretary sends the taxpayer a written notice that the taxpayer's period of presumptive eligibility with respect to such child is being terminated by reason of information known to the ,secretary 7including a failure to provide annual information under paragraph 7#b77 which casts doubt on such taxpayer's status as being allowed the monthly specified child allowance under section #bd;,a for such child 7determined without regard to section #bd;,a7c77#g77 with respect to one or more months following the reference month1 7ii7 any month with respect to which the taxpayer notifies the ,secretary that such taxpayer is not allowed a monthly specified child allowance for such month under section #bd;,a7b7 7determined without regard to section #bd;,a7c77#g771 and 7iii7 the month beginning immediately before the first month of a new period of presumptive eligibility with respect to such taxpayer and such child which is established on the basis of a reference month more recent than the reference month with respect to which such prior period was established 7including on the basis of an annual renewal described in paragraph 7#b774 7#b7 ,annual renewal ,the ,secretary shall terminate a taxpayer's period of presumptive eligibility with respect to any child under paragraph 7#a77;,b77i7 unless such taxpayer provides information sufficient to establish a new period of presumptive eligibility with respect to such child 7as described in paragraph 7#a77;,b77ii77 on an annual basis4 7#c7 ,automatic eligibility for birth of child ,the ,secretary shall issue regulations or other guidance to establish procedures pursuant to which1 to the maximum extent administratively practicable-- 7,a7 a parent of a child born during a calendar month shall be treated as automatically establishing a period of presumptive eligibility with respect to such child1 7,b7 the month for which such period begins1 and the month by which the first annual renewal described in paragraph 7#b7 must be completed1 are determined1 and 7,c7 if the first monthly advance child payment with respect to such child is made after the calendar month in which such child is born1 such payment is increased to properly take into account the months in such period of presumptive eligibility which precede the month in which such payment is made4 7#d7 ,presumptive eligibility based on certain government programs ,the ,secretary shall issue regulations or other guidance to establish procedures under which-- 7,a7 based on information provided to the ,secretary by one or more government entities1 a parent or specified relative of a child is treated as automatically establishing a period of presumptive eligibility with respect to such child1 and 7,b7 the month for which such period begins1 the month by which the first annual renewal described in paragraph 7#b7 must be completed1 and any additional circumstances under which such period will terminate1 are determined4 7#e7 ,taxpayer responsibility to notify ,secretary ,in the event that any taxpayer is not allowed a monthly specified child allowance under section #bd;,a7b7 7determined without regard to section #bd;,a7c77#g77 for any month in a period of presumptive eligibility with respect to such taxpayer1 such taxpayer shall notify the ,secretary under paragraph 7#a77;,b77ii7 at such time and in such manner as the ,secretary may provide4 7#f7 ,transition rule ,with respect periods of presumptive eligibility beginning during the first #f months to which this section applies1 the ,secretary shall issue regulations or other guidance to establish procedures pursuant to which-- 7,a7 based on information known to the ,secretary including returns of tax for either of the last #b taxable years ending before such month1 a parent or specified relative of a child is treated as automatically establishing a period of presumptive eligibility with respect to such child1 and 7,b7 the month for which such period begins1 the month by which the first annual renewal described in paragraph 7#b7 must be completed1 and any additional circumstances under which such period will terminate1 are determined4 7d7 ,determination of reference month and reference taxable year ,for purposes of this section-- 7#a7 ,reference month ,the term reference month means1 with respect to any calendar month in a period of presumptive eligibility with respect to a taxpayer1 the most recent of-- 7,a7 in the case of a taxpayer who filed a return of tax for the last taxable year ending before such calendar month1 the last month of such taxable year1 7,b7 in the case of a taxpayer who filed a return of tax for the taxable year preceding the taxable year described in subparagraph 7,a71 the last month of such preceding taxable year1 and 7,c7 in the case of a taxpayer who otherwise provides the information referred to in subsection 7c77#a77;,a71 the month with respect to which such information is provided4 7#b7 ,reference taxable year ,the term reference taxable year means1 with respect to any calendar month in a period of presumptive eligibility with respect to a taxpayer-- 7,a7 if the reference month with respect to such calendar month is determined under subparagraph 7,a7 or 7,b7 of paragraph 7#a71 the taxable year referred to in such subparagraph1 respectively1 and 7,b7 if the reference month with respect to such calendar month is determined under subparagraph 7#a77;,c71 the last taxable year ending before such reference month4 7e7 ,methods of providing information ,to establish a period of presumptive eligibility 7#a7 ,in general ,the ,secretary shall ensure the information described in subsection 7c77#a77;,a7 may be provided on the return of tax for the taxable year ending before the calendar year which includes the month for which such period would begin1 through the on-line portal described in paragraph 7#b71 or in such other manner as the ,secretary may provide4 7#b7 ,on-line information portal ,the ,secretary shall establish an on-line portal 7available in multiple languages7 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 the information described in subsection 7c77#a77;,a74 7f7 ,resolution of competing claims of presumptive eligibility with respect to same child 7#a7 ,in general ,if there is a period of presumptive eligibility with respect to any taxpayer and child 7hereafter referred to as the original claim71 a period of presumptive eligibility would 7without regard to this subsection7 be established with respect to another taxpayer and such child 7hereafter referred to as the challenge claim71 and the period of such challenge claim would overlap with the period of such original claim-- 7,a7 such challenge claim shall not be taken into account under this section unless the reference month with respect to which the challenge claim would be established is at least as recent as the reference month with respect to which the original claim is established1 7,b7 such challenge claim shall not begin before the original claim is terminated1 and 7,c7 the ,secretary shall establish procedures under which the ,secretary expeditiously adjudicates such claims on the basis of the most recent feasible reference month4 7#b7 ,provisions related to adjudication 7,a7 ,challenge claim must relate to at least #c months prospectively ,the procedures established under paragraph 7#a77;,c7 shall require that the taxpayer establishing the challenge claim express a reasonable expectation and intent that such taxpayer would be allowed a monthly specified child allowance under section #bd;,a7b7 7determined without regard to section #bd;,a7c77#g77 for at least the first #b months following the reference month referred to in paragraph 7#a77;,c74 7,b7 ,expedited process2 appeals ,the procedures established under paragraph 7#a77;,c7 shall include-- 7i7 an expedited process for taxpayers who meet such requirements as the ,secretary may establish for such expedited process1 and 7ii7 procedures for adjudicating an appeal of an adverse decision4 7,c7 ,information receipt and coordination ,for purposes of obtaining information relevant to any adjudication under this paragraph1 the ,secretary may enter into agreements to receive information from1 and otherwise coordinate with-- 7i7 ,federal agencies 7including the ,social ,security ,administration and the ,department of ,agriculture71 7ii7 any ,state1 local government1 ,tribal government1 or possession of the ,united ,states1 and 7iii7 any other individual or entity that the ,secretary determines to be appropriate for such purposes4 7,d7 ,adjudication not treated as assessment ,any adjudication under this paragraph shall not be treated as an assessment described in section #fbja4 7,e7 ,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 this paragraph 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 related to adjudication 7,a7 ,delay in establishment of challenge claim ,if the challenge claim is established pursuant to the procedures established under paragraph 7#a77;,c71 the ,secretary shall make a one-time payment to the taxpayer with respect to such claim equal to the aggregate amount of increases in the monthly advance child payments which would have been made to such taxpayer if such challenge claim had been allowed to take effect without regard to this subsection4 ,any payment under this subparagraph shall be in addition to any payment made under subsection 7g74 7,b7 ,termination and reinstatement of original claim ,if1 pursuant to the procedures established under paragraph 7#a77;,c71 the original claim is terminated under subsection 7c77#a77;,b77i7 and a new period of presumptive eligibility is subsequently established pursuant to such procedures with respect the same taxpayer and child as for such original claim1 the ,secretary shall make a one-time payment to the taxpayer with respect to such claim equal to the aggregate amount of increases in the monthly advance child payments which would have been made to such taxpayer if such original claim had never been terminated4 7g7 ,rules related to grace periods and hardships 7#a7 ,automatic grace period 7,a7 ,in general ,if a taxpayer establishes a period of presumptive eligibility with respect to any child1 elects the application of this paragraph1 and demonstrates to the satisfaction of the ,secretary that such taxpayer would be allowed a monthly specified child allowance under section #bd;,a7b7 7determined without regard to section #bd;,a7c77#g77 for one or more of the #c months immediately preceding the first month of such period1 the ,secretary shall make a one-time payment to the taxpayer equal to the aggregate amount of increases in the monthly advance child payments which would have been made to such taxpayer if such months were part of such period4 ,the preceding sentence shall not apply to the extent that the ,secretary determines that the failure to establish the period of presumptive eligibility with respect to such child for any such month was due to fraud or reckless or intentional disregard of rules and regulations4 7,b7 ,limitation ,subparagraph 7,a7 shall not apply with respect to any taxpayer more than once during any #cf-month period4 7#b7 ,hardship ,if a taxpayer establishes a period of presumptive eligibility with respect to any child1 elects the application of this paragraph 7and does not elect the application of paragraph 7#a7 with respect to the establishment of such period71 demonstrates to the satisfaction of the ,secretary that such taxpayer would be allowed a monthly specified child allowance under section #bd;,a7b7 7determined without regard to section #bd;,a7c77#g77 for one or more of the #f months immediately preceding the first month of such period1 and the ,secretary determines that the failure to establish the period of presumptive eligibility with respect to such child for such months was due to domestic violence1 serious illness1 natural disaster1 or any other hardship1 the ,secretary shall make a one-time payment to the taxpayer equal to the aggregate amount of increases in the monthly advance child payments which would have been made to such taxpayer if such months were part of such period4 7#c7 ,coordination with retroactive payment for delay in establishment of challenge claim ,for purposes of applying paragraph 7#a7 or 7#b7 with respect to any challenge claim to which subsection 7f77#c77;,a7 applies1 the period of presumptive eligibility shall be treated as including the period for which payment is made under such subsection4 7h7 ,provisions related to form1 manner1 and treatment of payments 7#a7 ,application of electronic funds payment requirement ,the payments made by the ,secretary under subsection 7a7 shall be made by electronic funds transfer to the same extent and in the same manner as if such payments were ,federal payments not made under this title4 7#b7 ,delivery of payments ,notwithstanding any other provision of law1 the ,secretary may certify and disburse refunds payable under this section electronically to-- 7,a7 any account to which the payee authorized1 on or after ,january #a1 #bjbe1 the delivery of a refund of taxes under this title or of a ,federal payment 7as defined in section #cccb of title #ca1 ,united ,states ,code71 7,b7 any account belonging to a payee from which that individual1 on or after ,january #a1 #bjbe1 made a payment of taxes under this title1 or 7,c7 any ,treasury-sponsored account 7as defined in section #bjh4b of title #ca1 ,code of ,federal ,regulations74 7#c7 ,waiver of certain rules ,notwithstanding section #ccbe of title #ca1 ,united ,states ,code1 or any other provision of law1 with respect to any payment of a refund under this section1 a disbursing official in the executive branch of the ,united ,states ,government may modify payment information received from an officer or employee described in section #ccbe7;a77#a77;,b7 of such title for the purpose of facilitating the accurate and efficient delivery of such payment4 ,except in cases of fraud or reckless neglect1 no liability under sections #ccbe1 #cebg1 #cebh1 or #cebi of title #ca1 ,united ,states ,code1 shall be imposed with respect to payments made under this paragraph4 7#d7 ,exception from reduction or offset ,any applicable payment 7as defined in paragraph 7#e77;,e77iii77 shall not be-- 7,a7 subject to reduction or offset pursuant to section #cgaf or #cgbj;,a of title #ca1 ,united ,states ,code1 7,b7 subject to reduction or offset pursuant to subsection 7c71 7d71 7e71 or 7f7 of section #fdjb1 or 7,c7 reduced or offset by other assessed ,federal taxes that would otherwise be subject to levy or collection4 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#f771 7,,ii7 any advance payment made by a possession of the ,united ,states with a mirror code tax system 7as defined in section #bd7;h77 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 7#f7 ,application of advance payments in the possessions of the united states 7,a7 ,puerto ,rico 7i7 ,for application of child tax credit to residents of ,puerto ,rico1 see section #bd;,a7d74 7ii7 ,for application of monthly advance child payments to residents of ,puerto ,rico1 see subsection 7b77#d74 7,b7 ,mirror code possessions ,in the case of any possession of the ,united ,states with a mirror code tax system 7as defined in section #bd;,a7h77#a77;,c771 this section shall not be treated as part of the income tax laws of the ,united ,states for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated4 7,c7 ,administrative expenses of advance payments 7i7 ,mirror code possessions ,in the case of any possession described in subparagraph 7,b7 which makes the election described in such subparagraph1 the amount otherwise paid by the ,secretary to such possession under section #bd;,a7h77#a77;,a7 with respect to taxable years beginning in #bjbf1 #bjbg1 and #bjbh shall each be increased by #cjj1jjj if such possession has a plan1 which has been approved by the ,secretary1 for making monthly advance child payments consistent with such election4 7ii7 ,american ,samoa ,the amount otherwise paid by the ,secretary to ,american ,samoa under subparagraph 7,a7 of section #bd;,a7h77#c7 with respect to taxable years beginning in #bjbe1 #bjbf1 and #bjbg shall each be increased by #cjj1jjj if the plan described in subparagraph 7,b7 of such section includes a program1 which has been approved by the ,secretary1 for making monthly advance child payments under rules similar to the rules of this section4 7iii7 ,timing of payment ,the ,secretary may pay1 upon the request of the possession of the ,united ,states to which the payment is to be made1 the amount of the increase determined under clause 7i7 or 7ii71 respectively1 immediately upon approval of the plan with respect to which such payment relates4 7i7 ,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;,a shall have the same respective meanings as when used in section #bd;,a4 7#b7 ,treatment of certain deaths ,a child shall not be taken into account in determining the monthly advance child payment for any calendar month if the death of such child before the end of such month is known to the ,secretary as of date on which the ,secretary estimates such payment4 7#c7 ,identification requirements ,rules similar to the rules which apply under section #bd;,a7e7 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 the on-line portal or otherwise1 with respect to the information so provided4 7#d7 ,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 #bd;,a7f74 7j7 ,notice of payments 7#a7 ,in general ,not later than ,january #ca of the calendar year following any calendar year during which the ,secretary makes one or more payments to any taxpayer under this section1 the ,secretary shall provide such taxpayer with a written notice which includes-- 7,a7 the taxpayer's taxpayer identity 7as defined in section #fajc7;b77#f771 7,b7 the aggregate amount of such payments made to such taxpayer during such calendar year1 and 7,c7 such other information as the ,secretary determines appropriate4 7#b7 ,certain payments subject to treatment as excess advance payments ,in the case of any payments made to a taxpayer which the ,secretary has determined are subject to treatment as excess advance payments1 the notice provided under paragraph 7#a7 to such taxpayer shall include the amount of such payments4 7k7 ,notification of certain events ,with respect to any taxpayer receiving monthly advance child payments under this section with respect to any specified 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 advance child payment will increase 7relative to the preceding month7 by reason of an inflation adjustment under section #bd;,a7b77#c77;,a74 7#b7 ,any month with respect to which such monthly advance child payment will be reduced 7relative to the preceding month7 by reason of such child ceasing to be a specified child by reason of attaining age #ah4 7#c7 ,in the case of a taxpayer with a specified child described in section #bd;,a7b77#a77;,a71 any month with respect to which such monthly advance child payment will be reduced by reason of such child attaining age #f4 7#d7 ,such other events as the ,secretary determines appropriate4 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 section4 4 7c7 ,termination of annual child tax credit ,section #bd is amended by adding at the end the following new subsection3 7l7 ,termination ,this section shall not apply to 7and no payment shall be made under subsection 7k7 with respect to7 any taxable year beginning after ,december #ca1 #bjbe4 4 7d7 ,disclosure of information relating to advance payment of child tax credit ,section #fajc7;e7 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 any individual who is eligible for monthly advance child payments under section #gebg;,a1 if the reference taxable year 7as defined in section #gebg;,a7d77#b77 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 monthly advance child payment under section #gebg;,a1 and the individual's eligibility for such payment1 including information regarding any of the following3 7i7 ,the number of specified children1 including by reason of the birth of a child4 7ii7 ,the name and ,,tin of specified children4 7iii7 ,marital status4 7iv7 ,modified adjusted gross income4 7v7 ,principal place of abode4 7vi7 ,such other information as the ,secretary may provide4 7,b7 ,competing claimants ,in the case of any adjudication under section #gebg;,a7f71 the ,secretary may disclose return information provided by the individual with the original claim to the individual with the challenge claim1 return information provided by the individual with the challenge claim to the individual with the original claim1 and any other information considered by the ,secretary in such adjudication to either or both such individuals4 ,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 claims under section #gebg;,a7f74 7ii7 ,information considered by the ,secretary about where and with whom the specified child resided4 7iii7 ,information considered by the ,secretary about expenditures made by the claimants to the extent such payments relate to the original or challenge claim4 4 7e7 ,conforming amendments 7#a7 ,section #bf7;b77#b7 is amended by striking and at the end of subparagraph 7,y71 by striking the period at the end of subparagraph 7,z7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,,aa7 section #bd;,a7g77#b7 7relating to increase in tax equal to excess advance payments in certain circumstances74 4 7#b7 ,section #aeb7;f77#f77;,b77ii7 is amended to read as follows3 7ii7 the credits under sections #bd1 #bd;,a1 and #bd;,b and the payments under sections #gebg;,a1 4 7#c7 ,section #cdjb7;f77#a77;,c7 is amended by inserting or section #bd;,a 7determined after application of subsection 7g7 thereof7 after section #bd 7determined after application of subsection 7j7 thereof74 7#d7 ,section #fajc7l77#ac77;,a77v7 is amended by inserting or section #bd;,a1 as the case may be after section #bd4 7#e7 ,section #fbaa7;b77#d77;,a7 is amended by inserting #bd;,a by reason of subsection 7d7 thereof1 after #bd by reason of subsections 7d7 and 7i77#a7 thereof14 7#f7 ,section #fbac7;g77#b77;,i7 is amended by inserting or section #bd;,a7e7 7relating to monthly child tax credit7 after section #bd7;e7 7relating to child tax credit74 7#g7 ,section #fbac7;g77#b77,l7 is amended by inserting #bd;,a1 after #bd14 7#h7 ,section #fbac7;g77#b77,p7 is amended-- 7,a7 by inserting or #bd;,a7f77#b7 after section #bd7;g77#b71 7,b7 by inserting or #bd;,a after under section #bd1 and 7,c7 by striking subsection 7g77#a7 thereof and inserting section #bd7;g77#a7 or section #bd;,a7f77#a71 respectively4 7#i7 ,section #ffie7;g77#b7 is amended by inserting #bd;,a1 after #bd14 7#aj7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #bd;,a1 after #bd14 7#aa7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #bd the following new items3 ,sec4 #bd;,a4 ,monthly child tax credit4 ,sec4 #bd;,b4 ,credit for certain other dependents4 4 7#ab7 ,the table of sections for chapter #gg is amended by striking the item relating to section #gebg;,a and inserting the following new item3 ,sec4 #gebg;,a4 ,monthly payments of child tax credit4 4 7f7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 7#b7 ,monthly advance child payments ,the amendments made by subsection 7b7 shall apply to-- 7,a7 calendar months beginning after the date of the enactment of this ,act1 and 7,b7 in the case of section #gebg;,a7g7 of the ,internal ,revenue ,code of #aihf 7relating to grace periods and hardships71 calendar months beginning after ,december #ca1 #bjbe4 7#c7 ,information disclosure ,the amendment made by subsection 7d7 shall take effect on the date of the enactment of this ,act4