In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of—
(1) 6.2 percent of earned income of the taxpayer, or
(2) $400 ($800 in the case of a joint return).
The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).
For purposes of subparagraph (A),1 the term "modified adjusted gross income" means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 2201, and any credit allowed to the taxpayer under section 2202, of the American Recovery and Reinvestment Tax Act of 2009.
For purposes of this section—
The term "eligible individual" means any individual other than—
(i) any nonresident alien individual,
(ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, and
(iii) an estate or trust.
Such term shall not include any individual who does not include on the return of tax for the taxable year—
(i) such individual's social security account number, and
(ii) in the case of a joint return, the social security account number of one of the taxpayers on such return.
For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service.
The term "earned income" has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year.
This section shall not apply to taxable years beginning after December 31, 2010.
(Added Pub. L. 111–5, div. B, title I, §1001(a), Feb. 17, 2009, 123 Stat. 309.)
Sections: Previous 30D 31 32 33 34 35 36 36A 36B 37 38 39 40 40A 41 Next
Last modified: October 26, 2015