26 USC 7527 - Advance payment of child tax credit

View all text of Chapter 77 [§ 7501 - § 7530]

§ 7527A. Advance payment of child tax credit

(a) In general

(b) Annual advance amountFor purposes of this section—

(1) In generalExcept as otherwise provided in this subsection, the term “annual advance amount” means, with respect to any taxpayer for any calendar year, the amount (if any) which is estimated by the Secretary as being equal to 50 percent of the amount which would be treated as allowed under subpart C of part IV of subchapter A of chapter 1 by reason of section 24(i)(1) for the taxpayer’s taxable year beginning in such calendar year if—

(A) the status of the taxpayer as a taxpayer described in section 24(i)(1) is determined with respect to the reference taxable year,

(B) the taxpayer’s modified adjusted gross income for such taxable year is equal to the taxpayer’s modified adjusted gross income for the reference taxable year,

(C) the only children of such taxpayer for such taxable year are qualifying children properly claimed on the taxpayer’s return of tax for the reference taxable year, and

(D) the ages of such children (and the status of such children as qualifying children) are determined for such taxable year by taking into account the passage of time since the reference taxable year.

(2) Reference taxable year

(3) Modifications during calendar year

(A) In generalThe Secretary may modify, during any calendar year, the annual advance amount with respect to any taxpayer for such calendar year to take into account—

(i) a return of tax filed by such taxpayer during such calendar year (and the taxable year to which such return relates may be taken into account as the reference taxable year), and

(ii) any other information provided by the taxpayer to the Secretary which allows the Secretary to determine payments under subsection (a) which, in the aggregate during any taxable year of the taxpayer, more closely total the Secretary’s estimate of the amount treated as allowed under subpart C of part IV of subchapter A of chapter 1 by reason of section 24(i)(1) for such taxable year of such taxpayer.

(B) Adjustment to reflect excess or deficit in prior payments

(4) Determination of status

(5) Treatment of certain deaths

(1) elect not to receive payments under this section, and

(2) provide information to the Secretary which would be relevant to a modification under subsection (b)(3)(B) of the annual advance amount, including information regarding—

(A) a change in the number of the taxpayer’s qualifying children, including by reason of the birth of a child,

(B) a change in the taxpayer’s marital status,

(D) any other factor which the Secretary may provide.

(d) Notice of payments

(e) Administrative provisions

(1) Application of electronic funds payment requirement

(2) Application of certain rules

(3) Exception from reduction or offsetAny payment made to any individual under this section shall not be—

(A) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or

(B) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.

(4) Application of advance payments in the possessions of the United States

(A) In generalThe advance payment amount determined under this section shall be determined—

(i) by applying section 24(i)(1) without regard to the phrase “or is a bona fide resident of Puerto Rico (within the meaning of section 937(a))”, and

(ii) without regard to section 24(k)(3)(C)(ii)(I).

(B) Mirror code possessions

(i) Mirror code possessions

(ii) American Samoa

(iii) Timing of payment

(f) ApplicationNo payments shall be made under the program established under subsection (a) with respect to—

(1) any period before July 1, 2021, or

(2) any period after December 31, 2021.

(g) Regulations

(Added Pub. L. 117–2, title IX, § 9611(b)(1), Mar. 11, 2021, 135 Stat. 146.)