Working Families Tax Relief Act of 2013 - Amends the Internal Revenue Code, as amended by the American Recovery and Reinvestment Act of 2009, to: (1) make permanent the reduction in the income threshold (from $10,000 to $3,000) for determining the refundable portion of the child tax credit, (2) eliminate the inflation adjustment to such amount, and (3) allow an annual inflation adjustment after 2012 to the $1,000 maximum credit amount and the adjusted gross income threshold amounts used to reduce the allowable amount of such credit.
Modifies the earned income tax credit to: (1) make permanent the increase in the rate of such credit for taxpayers with three or more children, (2) increase the credit for taxpayers with no qualifying children, (3) reduce from 25 to 21 the qualifying age for such credit, (4) revise eligibility rules relating to married individuals living apart and qualifying children claimed by another family member, and (5) repeal the denial of such credit for taxpayers with excess investment income.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 836 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 836
To amend the Internal Revenue Code of 1986 to strengthen the earned
income tax credit and make permanent certain tax provisions under the
American Recovery and Reinvestment Act of 2009.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 25, 2013
Mr. Brown (for himself, Mr. Durbin, Mr. Schumer, Mr. Baucus, Mr.
Rockefeller, Mr. Wyden, Ms. Stabenow, Mr. Menendez, Mr. Cardin, Mr.
Casey, Mrs. Murray, Mr. Lautenberg, Mrs. Gillibrand, Mr. Cowan, Mr.
Whitehouse, Mr. Reed, Ms. Hirono, Mr. Harkin, Mr. Levin, Mrs. Boxer,
Mr. Blumenthal, Mr. Begich, Mr. Schatz, Ms. Klobuchar, Mr. Franken, Mr.
Bennet, Ms. Warren, Mr. Johnson of South Dakota, Mr. Merkley, and Mr.
Murphy) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to strengthen the earned
income tax credit and make permanent certain tax provisions under the
American Recovery and Reinvestment Act of 2009.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Working Families Tax Relief Act of
2013''.
SEC. 2. PERMANENT EXTENSION OF AND MODIFICATIONS TO THE CHILD TAX
CREDIT.
(a) Permanent Extension of Increase in Refundable Portion.--
(1) In general.--Clause (i) of section 24(d)(1)(B) of the
Internal Revenue Code of 1986 is amended by striking
``$10,000'' and inserting ``$3,000''.
(2) Conforming amendment.--Subsection (d) of section 24 of
such Code is amended by striking paragraph (4).
(3) Elimination of inflation adjustment.--Subsection (d) of
section 24 of such Code is amended by striking paragraph (3).
(b) Inflation Adjustments.--Section 24 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subsection:
``(g) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning in a calendar year after 2012, the $1,000 amount in
subsection (a) and each of the dollar amounts in subsection
(b)(2) shall each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2011' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--Any increase determined under the
preceding sentence shall be rounded to the nearest multiple of
$50.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 3. PERMANENT EXTENSION OF MODIFICATIONS TO EARNED INCOME TAX
CREDIT.
(a) Increase in Credit Percentage for Families With 3 or More
Children.--Paragraph (1) of section 32(b) of the Internal Revenue Code
of 1986 is amended by striking subparagraphs (B) and (C) and inserting
the following new subparagraph:
``(B) Increased credit percentage for families with
3 or more qualifying children.--In the case of an
eligible individual with 3 or more qualifying children,
the table in subparagraph (A) shall be applied by
substituting `45' for `40' in the second column
thereof.''.
(b) Joint Returns.--
(1) In general.--Subparagraph (B) of section 32(b)(2) of
the Internal Revenue Code of 1986 is amended by striking
``increased by'' and all that follows and inserting ``increased
by $5,000.''.
(2) Inflation adjustments.--Clause (ii) of section
32(j)(1)(B) of such Code is amended--
(A) by striking ``$3,000'' and inserting
``$5,000'',
(B) by striking ``subsection (b)(2)(B)(iii)'' and
inserting ``subsection (b)(2)(B)'', and
(C) by striking ``calendar year 2007'' and
inserting ``calendar year 2008''.
(c) Conforming Amendment.--Section 32(b)of such Code is amended by
striking paragraph (3).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 4. STRENGTHENING THE EARNED INCOME TAX CREDIT.
(a) Increased Credit for Individuals With No Qualifying Children.--
(1) In general.--The table in subparagraph (A) of section
32(b)(2) of the Internal Revenue Code of 1986 is amended--
(A) by striking ``$4,220'' in the second column and
inserting ``$8,820'', and
(B) by striking ``$5,280'' in the last column and
inserting ``$10,425''.
(2) Inflation adjustments.--Subparagraph (B) of section
32(j)(1) of the Internal Revenue Code of 1986, as amended by
this Act, is amended--
(A) in clause (i)--
(i) by inserting ``(except as provided in
clause (iii))'' after ``(b)(2)(A)'', and
(ii) by striking ``and'' at the end, and
(B) by adding at the end the following new clause:
``(iii) in the case of the $8,820 and
$10,4250 amount in the table in subsection
(b)(2)(A), by substituting `calendar year 2012'
for `calendar year 1992' in subparagraph (B) of
such section 1.''.
(b) Credit Increase and Reduction in Phaseout for Individuals With
No Children.--The table contained in section 32(b)(1)(A) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``7.65'' in the second column of the third
row and inserting ``15.3'', and
(2) by striking ``7.65'' in the third column of the third
row and inserting ``15.3''.
(c) Credit Allowed for Certain Childless Individuals Over Age 21.--
Subclause (II) of section 32(c)(1)(A)(ii) of the Internal Revenue Code
of 1986 (relating to eligible individual) is amended by striking ``age
25'' and inserting ``age 21''.
(d) Effective Dates.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 5. SIMPLIFYING THE EARNED INCOME TAX CREDIT.
(a) Modification of Abandoned Spouse Rule.--
(1) In general.--Section 32(c)(1) of the Internal Revenue
Code of 1986 (relating to eligible individual) is amended by
adding at the end the following new paragraph:
``(G) Certain married individuals living apart.--
For purposes of this section, an individual who--
``(i) is married (within the meaning of
section 7703(a)) and files a separate return
for the taxable year,
``(ii) lives with a qualifying child of the
individual for more than one-half of such
taxable year, and
``(iii)(I) during the last 6 months of such
taxable year, does not have the same principal
place of abode as the individual's spouse, or
``(II) has a legally binding separation
agreement with the individual's spouse and is
not a member of the same household with the
individual's spouse by the end of the taxable
year,
shall not be considered as married.''.
(2) Conforming amendments.--
(A) The last sentence of section 32(c)(1)(A) of the
Internal Revenue Code of 1986 is amended by striking
``section 7703'' and inserting ``section 7703(a)''.
(B) Section 32(d) of such Code is amended by
striking ``In the case of an individual who is married
(within the meaning of section 7703)'' and inserting
``In the case of an individual who is married (within
the meaning of section 7703(a)) and is not described in
subsection (c)(1)(G)''.
(b) Elimination of Disqualified Investment Income Test.--
(1) In general.--Section 32 of the Internal Revenue Code of
1986 is amended by striking subsection (i).
(2) Conforming amendments.--
(A) Section 32(j)(1)(B)(i) of such Code, as amended
by this Act, is amended--
(i) by striking ``subsections'' and
inserting ``subsection'', and
(ii) by striking ``and (i)(1)''.
(B) Section 32(j)(2) of such Code is amended to
read as follows:
``(2) Rounding.--If any dollar amount in subsection
(b)(2)(A) (after being increased under subparagraph (B)
thereof), after being increased under paragraph (1), is not a
multiple of $10, such amount shall be rounded to the next
nearest multiple of $10.''.
(c) Simplification of Rules Regarding Presence of Qualifying
Child.--
(1) Taxpayer eligible for credit for worker without
qualifying child if qualifying child claimed by another member
of family.--Section 32(c)(1) of the Internal Revenue Code of
1986 (relating to eligible individual), as amended by this Act,
is amended by adding at the end the following new paragraph:
``(H) Taxpayer eligible for credit for worker
without qualifying child if qualifying child claimed by
another member of family.--
``(i) General rule.--Except as provided in
clause (ii), in the case of 2 or more eligible
individuals who may claim for such taxable year
the same individual as a qualifying child, if
such individual is claimed as a qualifying
child by such an eligible individual, then any
other such eligible individual who does not
make such a claim of such child or of any other
qualifying child may be considered an eligible
individual without a qualifying child for
purposes of the credit allowed under this
section for such taxable year.
``(ii) Exception if qualifying child
claimed by parent.--If an individual is claimed
as a qualifying child for any taxable year by
an eligible individual who is a parent of such
child, then no other custodial parent of such
child who does not make such a claim of such
child may be considered an eligible individual
without a qualifying child for purposes of the
credit allowed under this section for such
taxable year.''.
(2) Taxpayer eligible for credit for worker without
qualifying child if qualifying children do not have valid
social security number.--Subparagraph (F) of section 32(c)(1)
of the Internal Revenue Code of 1986 is amended to read as
follows:
``(F) Individuals who do not include tin, etc., of
any qualifying child.--In the case of any eligible
individual who has one or more qualifying children, if
no qualifying child of such individual is taken into
account under subsection (b) by reason of paragraph
(3)(D), for purposes of the credit allowed under this
section, such individual may be considered an eligible
individual without a qualifying child.''.
(d) Effective Dates.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line