To amend the Internal Revenue Code of 1986 to make changes to the earned income tax credit to provide equitable treatment for military families overseas and to clarify and improve current law.

Amends the Internal Revenue Code to make members of the armed forces serving on extended active duty and stationed outside the United States eligible for the earned income credit.

 
HR 3949 IH
101st CONGRESS
2d Session
 H. R. 3949
To amend the Internal Revenue Code of 1986 to make changes to the earned
income tax credit to provide equitable treatment for military families
overseas and to clarify and improve current law.
IN THE HOUSE OF REPRESENTATIVES
February 5, 1990
Mr. SLATTERY (for himself, Mr. COLEMAN of Texas, Mr. FRANK, Mr. MARTIN of
New York, Mr. CHAPMAN, Mr. DORNAN of California, Mr. HORTON, Mr. SUNDQUIST,
Mr. ROE, Mr. ACKERMAN, Mr. WHEAT, Mrs. VUCANOVICH, Mr. WALSH, Mr. BEREUTER,
Mr. EMERSON, and Ms. PELOSI) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to make changes to the earned
income tax credit to provide equitable treatment for military families
overseas and to clarify and improve current law.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. APPLICATION OF THE EARNED INCOME TAX CREDIT TO MEMBERS OF THE
ARMED FORCES.
  Section 32 of the Internal Revenue Code of 1986 is amended by adding at
  the end thereof the following new subsection:
  `(j) MEMBERS OF THE ARMED FORCES-
  `(1) RESIDENCE- For purposes of subsection (c)(1)(B), a member of the Armed
  Forces serving on extended active duty who is stationed outside the United
  States but considered a resident of a State pursuant to the Soldiers'
  and Sailors' Civil Relief Act of 1940, as amended (50 U.S.C. App. 574),
  will be considered to be maintaining a household and a principal place of
  abode in the United States.
  `(2) EARNED INCOME- For purposes of subsection (c)(2)(A)(i), earned
  income includes compensation for service as a member of the Armed Forces
  whether or not excluded from gross income under this chapter, including
  subsistence and housing and the amount excludable under section 112 as
  combat zone compensation. Solely for purposes of this section, the term
  `subsistence and housing' means, with respect to the grade and status of
  a member of the Armed Forces during the taxable year, the basic allowance
  for subsistence (37 U.S.C. 402) and the basic allowance for quarters (37
  U.S.C. 403), regardless of the amount of allowances actually received during
  the taxable year by the member and regardless of whether any subsistence
  or housing is provided in-kind during the taxable year.'
SEC. 2. MILITARY EMPLOYER STATEMENTS OF EARNED INCOME.
  Section 6051 of the Internal Revenue Code of 1986 (relating to receipts
  for employees) is amended by redesignating paragraphs (7), (8), and (9)
  of subsection (a) (relating to requirements for receipts for employees)
  as paragraphs (8), (9), and (10), respectively, and by inserting after
  paragraph (6) the following:
  `(7) for employees who are members of the Armed Forces, the total amount
  of earned income for purposes of section 32 not reflected in paragraph (3),'
SEC. 3. ADVANCE PAYMENT BASED UPON EARNED INCOME.
  Subsection (c)(1) of section 3507 of the Internal Revenue Code of 1986
  (relating to earned income advance amount) is amended by adding at the end
  thereof the following: `For employees who are members of the Armed Forces,
  the earned income advance amount shall be determined based on the member's
  earned income (as defined in section 32).'
SEC. 4. EFFECTIVE DATE.
  The amendments made by this Act shall apply to taxable years beginning
  after December 31, 1990.