Identification requirements for child tax credit and earned income tax credit; permanent extension of certain temporary rules for child tax credit

(a) Child tax credit Section 24 of the Internal Revenue Code of 1986 is amended— (1) in subsection (a), by striking $1,000 and inserting $2,000, (2) in subsection (b)(2), by striking subparagraphs (A) through (C) and inserting the following: (A) $400,000 in the case of a joint return, and (B) $200,000 in any other case., (3) in subsection (d)— (A) in paragraph (1)(B)(i), by striking $3,000 and inserting $2,500, and (B) by adding at the end the following: (4) Maximum amount of refundable credit (A) In general The amount determined under paragraph (1)(A) with respect to any qualifying child shall not exceed $1,700, and such paragraph shall be applied without regard to subsection (h). (B) Adjustment for inflation (i) In general In the case of a taxable year beginning after 2024, the $1,700 amount in subparagraph (A) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2023 for 2016 in subparagraph (A)(ii) thereof. (ii) Rounding If any increase under this subparagraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100., (4) by striking subsection (e) and inserting the following: (e) Additional requirements (1) Identification requirements No credit shall be allowed under this section to a taxpayer who does not include on the return of tax for the taxable year— (A) the social security number of the taxpayer (and, in the case of a joint return, the social security number of the taxpayer's spouse), (B) with respect to any qualifying child, the name and the social security number of such qualifying child, and (C) for purposes of subsection (h), with respect to any dependent of the taxpayer, the name and the social security number of such dependent. (2) Social security number defined For purposes of this subsection, the term social security number means, with respect to a return of tax, a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued— (A) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and (B) before the due date for filing such return for the taxable year. (3) Citizenship and lawful presence requirements (A) In general No credit shall be allowed under this section to a taxpayer unless— (i) the taxpayer (and, in the case of a joint return, the taxpayer's spouse) satisfy the requirements under subparagraph (B), (ii) with respect to any qualifying child, such child satisfies the requirements under subparagraph (B), and (iii) with respect to any dependent described in subsection (h), such dependent satisfies the requirements under subparagraph (B). (B) Requirements The requirements described in this subparagraph are that the individual— (i) shall be a citizen of the United States or an alien lawfully present in the United States, and (ii) may not be— (I) an alien granted asylum under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), (II) an alien granted parole under section 212(d)(5) or 236(a)(2)(B) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(5), 1126(a)(2)(B)), (III) an alien granted temporary protected status under section 244 of the Immigration and Nationality Act (8 U.S.C. 1254a), (IV) an alien granted withholding of removal under section 241(b)(3) of the Immigration and Nationality Act (8 U.S.C. 1231(b)(3)), (V) any nonimmigrant described in section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)), (VI) any alien granted deferred action or deferred enforced departure, including pursuant to the memorandum of the Department of Homeland Security entitled Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children issued on June 15, 2012, or (VII) an alien who has been issued an employment-based immigrant visa described in section 203(b) of that Act (8 U.S.C. 1153(b))., and (5) by striking subsection (h) and inserting the following: (h) Partial credit allowed for certain other dependents (1) In general The credit determined under subsection (a) shall be increased by $500 for each dependent of the taxpayer (as defined in section 152) other than a qualifying child described in subsection (c). (2) Exception for certain noncitizens Paragraph (1) shall not apply with respect to any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows resident of the United States.. (b) Earned income tax credit Section 32 of the Internal Revenue Code of 1986 is amended by inserting after subsection (f) the following new subsection: (g) Citizenship and lawful presence requirements No credit shall be allowed under this section to an eligible individual unless— (1) the individual (and, in the case of a joint return, the individual's spouse) satisfy the requirements described in section 24(e)(3)(B), and (2) with respect to any qualifying child, such child satisfies the requirements under such section.. (c) Conforming amendments Section 6213(g)(2) of the Internal Revenue Code of 1986 is amended— (1) in subparagraph (I), by striking TIN and inserting social security number, and (2) by striking subparagraph (L) and inserting the following: (L) the inclusion on a return of a TIN required to be included on the return under section 21, 6428, or 6428A, or the inclusion on a return of a social security number required to be included on the return under section 24 or 32, if— (i) such TIN or social security number, as applicable, is of an individual whose age affects the amount of the credit under such section, and (ii) the computation of the credit on the return reflects the treatment of such individual as being of an age different from the individual's age based on such TIN or social security number, as applicable,. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024.