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General.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
“(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
“(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
“(b) Treatment Of Credit.—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.
“(c) Limitation Based On Adjusted Gross Income.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
“(1) $150,000 in the case of a joint return,
“(2) $112,500 in the case of a head of household, and
“(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
“(d) Eligible Individual.—For purposes of this section, the term ‘eligible individual’ means any individual other than—
“(1) any nonresident alien individual,
“(2) 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
“(3) an estate or trust. |
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