26 U.S.C. § 6428A — Additional 2020 recovery rebates for individuals
submitted 6 years ago by Pub. L. 116-260 to r/title-26-INTERNAL-REVENUE-CODE · 2,721 words · no verdicts yet
This section gives an eligible individual a credit for the first taxable year beginning in 2020. The credit is generally $600, or $1,200 for a joint return, plus $600 for each qualifying child, and this section also provides for advance refunds or credits and related payment rules.
(a) In general. In addition to the credit allowed under section 6428, an eligible individual gets a credit against the tax imposed by subtitle A for the first taxable year* beginning in 2020. The credit equals the total of—
(1) $600, or $1,200 if eligible individuals file a joint return*; and
(2) $600 multiplied by the number of the taxpayer’s qualifying children. “Qualifying child” has the meaning given in section 24(c); this section does not define that quoted term.
(b) Treatment of credit. The credit under subsection (a) is treated as a credit allowed under subpart C of part IV of subchapter A of chapter 1.
(c) Limitation based on adjusted gross income. First determine the credit under subsection (a) without applying this subsection or subsection (e). Then reduce that credit, but not below zero, by 5 percent of the part of the taxpayer’s “adjusted gross income” that is above—
(1) $150,000, for a joint return or a surviving spouse. “Surviving spouse” has the meaning given in section 2(a); this section does not define that quoted term;
(2) $112,500, for a head of household. “Head of household” has the meaning given in section 2(b); this section does not define that quoted term; or
(3) $75,000, for a taxpayer* who is not described in paragraph (1) or (2).
This section does not define the quoted term “adjusted gross income.”
(d) Eligible individual. For this section, “eligible individual” means an individual other than—
(1) a nonresident alien individual;
(2) an individual for whom another taxpayer may claim a deduction under section 151 for a taxable year beginning in the calendar year in which the individual’s taxable year begins; or
(3) an estate or trust.
(e) Coordination with advance refunds of credit.
(1) In general. Start with the credit that would be allowed under this section without this paragraph. Reduce it, but not below zero, by the total of the refunds and credits made or allowed to the taxpayer under subsection (f). If the credit is not reduced as required, the failure is treated as a mathematical or clerical error and is assessed under section 6213(b)(1).
(2) Joint returns. Unless the Secretary* provides otherwise, when a refund or credit is made or allowed under subsection (f) for a joint return, half of that refund or credit is treated as made or allowed to each individual who filed the return.
(f) Advance refunds and credits.
(1) In general. Each individual who was an eligible individual for that individual’s first taxable year beginning in 2019 is treated as having made a payment against the tax imposed by chapter 1 for that taxable year. The payment equals the advance refund amount for that taxable year.
(2) Advance refund amount. The advance refund amount is the amount that would have been allowed as a credit under this section for that taxable year if this section, other than subsection (e) and this subsection, had applied to that taxable year.
For purposes of determining that amount—
(A) an individual who died before January 1, 2020, is treated, for purposes of applying subsection (g), in the same way as if that person’s valid identification number had not been included on the return of tax for that taxable year. In this circumstance, subparagraph (E) of subsection (g) does not apply; and
(B) no amount is determined under this subsection for a qualifying child of the taxpayer if—
(i) the taxpayer died before January 1, 2020; or
(ii) for a joint return, both taxpayers died before January 1, 2020.
(3) Timing and manner of payments.
(A) Timing.
(i) In general. Subject to the provisions of this title, the Secretary must refund or credit an overpayment attributable to this subsection as rapidly as possible.
(ii) Deadline.
(I) In general. Unless subclause (II) applies, no refund or credit may be made or allowed under this subsection after January 15, 2021.
(II) Exception for mirror code possessions. For a possession of the United States that has a mirror code tax system, no refund or credit may be made or allowed under this subsection after the earlier of—
(aa) the date the Secretary determines is appropriate; or
(bb) September 30, 2021.
“Mirror code tax system” and “possession of the United States” are defined in section 272(c) of the COVID-related Tax Relief Act of 2020; this section does not define those quoted terms.
(B) Delivery of payments. Despite any other law, the Secretary may certify and electronically disburse refunds payable under this subsection to—
(i) an account to which the payee authorized, on or after January 1, 2019, delivery of a refund of taxes under this title or of a Federal payment. “Federal payment” has the meaning given in section 3332 of title 31, United States Code; this section does not define that quoted term;
(ii) an account belonging to a payee from which that individual made a payment of taxes under this title on or after January 1, 2019; or
(iii) a Treasury-sponsored account. “Treasury-sponsored account” has the meaning given in section 208.2 of title 31, Code of Federal Regulations; this section does not define that quoted term.
(C) Waiver of certain rules. Despite section 3325 of title 31, United States Code, or any other law, a disbursing official in the executive branch of the United States Government may change payment information received from an officer or employee* described in section 3325(a)(1)(B) of that title. The official may do so to help deliver the payment accurately and efficiently. Except in a case involving fraud or reckless neglect, no liability under sections 3325, 3527, 3528, or 3529 of title 31, United States Code, may be imposed for payments made under this subparagraph.
(4) No interest. No interest is allowed on an overpayment attributable to this subsection.
(5) Application to certain individuals who do not file a return of tax for 2019.
(A) In general. If a specified individual has not filed a tax return for the year described in paragraph (1) when a determination is made under paragraph (3), the Secretary may use information about that individual supplied by—
(i) the Commissioner* of Social Security, for a specified social security beneficiary or a specified supplemental security income recipient;
(ii) the Railroad Retirement Board, for a specified railroad retirement beneficiary; or
(iii) the Secretary of Veterans Affairs, coordinating with and getting help from the Commissioner of Social Security if appropriate, for a specified veterans beneficiary.
(B) Specified individual. “Specified individual” means an individual who is—
(i) a specified social security beneficiary;
(ii) a specified supplemental security income recipient;
(iii) a specified railroad retirement beneficiary; or
(iv) a specified veterans beneficiary.
This section does not otherwise define the quoted term “specified individual.”
(C) Specified social security beneficiary.
(i) In general. “Specified social security beneficiary” means an individual who, for the last month for which the Secretary has information available as of the date this section was enacted, is entitled to any monthly insurance benefit payable under title II of the Social Security Act. This includes payments under sections 202(d), 223(g), and 223(i)(7) of that Act.
(ii) Exception. The term does not include an individual if the benefit is not payable for that month because of section 202(x)(1)(A) or section 1129A of the Social Security Act.
This section does not otherwise define the quoted term “specified social security beneficiary.”
(D) Specified supplemental security income recipient.
(i) In general. “Specified supplemental security income recipient” means an individual who, for the last month for which the Secretary has information available as of the date this section was enacted, is eligible for a monthly benefit payable under title XVI of the Social Security Act. This includes—
(I) payments under section 1614(a)(3)(C) of that Act;
(II) payments under section 1619(a), or subsections (a)(4), (a)(7), or (p)(7) of section 1631, of that Act; and
(III) State supplementary payments of the type referred to in section 1616(a) of that Act, or payments of the type described in section 212(a) of Public Law 93-66, when the Commissioner pays them under an agreement referred to in section 1616(a) or section 212(a) of Public Law 93-66.
(ii) Exception. The term does not include an individual if the monthly benefit is not payable for that month because of section 1611(e)(1)(A) or section 1129A of the Social Security Act.
This section does not otherwise define the quoted term “specified supplemental security income recipient.”
(E) Specified railroad retirement beneficiary. “Specified railroad retirement beneficiary” means an individual who, for the last month for which the Secretary has information available as of the date this section was enacted, is entitled to a monthly annuity or pension payment payable, without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974, under—
(i) section 2(a)(1) of that Act;
(ii) section 2(c) of that Act;
(iii) section 2(d)(1) of that Act; or
(iv) section 7(b)(2) of that Act, for any of the benefit payments described in subparagraph (C)(i).
This section does not otherwise define the quoted term “specified railroad retirement beneficiary.”
(F) Specified veterans beneficiary.
(i) In general. “Specified veterans beneficiary” means an individual who, for the last month for which the Secretary has information available as of the date this section was enacted, is entitled to a compensation or pension payment payable under—
(I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code;
(II) section 1310, 1312, 1313, 1315, 1316, or 1318 of that title;
(III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of that title; or
(IV) section 1805, 1815, or 1821 of that title, when the payment is to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101 of that title.
(ii) Exception. The term does not include an individual if the compensation or pension payment is not payable, or was reduced, for that month because of section 1505 or 5313 of title 38, United States Code.
This section does not otherwise define the quoted term “specified veterans beneficiary.”
(G) Subsequent determinations and redeterminations not taken into account. For this section, an individual’s status as a specified social security beneficiary, specified supplemental security income recipient, specified railroad retirement beneficiary, or specified veterans beneficiary is not changed by a determination or redetermination of that individual’s entitlement to, or eligibility for, a benefit, payment, or compensation if the determination or redetermination happens after the last month for which the Secretary has information available as of the date this section was enacted.
(H) Payment to representative payees and fiduciaries.
(i) In general. If the benefit, payment, or compensation described in subparagraph (C)(i), (D)(i), (E), or (F)(i) for a specified individual is paid to a representative payee or fiduciary*, the Secretary must make the payment under paragraph (3) for that specified individual to the individual’s representative payee or fiduciary. The entire payment may be used only for the benefit of the individual who is entitled to the payment.
(ii) Application of enforcement provisions.
(I) For a payment described in clause (i) for a specified social security beneficiary or specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act applies to the payment in the same way that section applies to a payment under title II or XVI of that Act.
(II) For a payment described in clause (i) for a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act applies to the payment in the same way that section applies to a payment under that Act.
(III) For a payment described in clause (i) for a specified veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, apply to the payment in the same way that those sections apply to a payment under that title.
(I) Ineligibility for special rule not to be interpreted as general ineligibility. An individual does not stop being treated as an eligible individual for this subsection or subsection (a) merely because the individual is not a specified individual. This includes an individual who is not a specified individual because of subparagraph (C)(ii), (D)(ii), or (F)(ii).
(6) Notice to taxpayer. As soon as practicable after the Secretary distributes a payment under this subsection to an eligible taxpayer, the Secretary must mail notice to the taxpayer’s last known address. The notice must state—
(A) how the payment was made;
(B) the amount of the payment; and
(C) a telephone number for the appropriate Internal Revenue Service contact to report that the payment was not received.
(g) Identification number requirement.
(1) In general. For a return other than a joint return, treat the $600 amount in subsection (a)(1) as zero unless the taxpayer includes the taxpayer’s valid identification number on the return of tax for the taxable year.
(2) Joint returns. For a joint return, treat the $1,200 amount in subsection (a)(1) as—
(A) $600, if the valid identification number of only one spouse is included on the return of tax for the taxable year; or
(B) zero, if the valid identification number of neither spouse is included on that return.
(3) Qualifying child. Do not count a qualifying child under subsection (a)(2) unless—
(A) the taxpayer’s valid identification number is included on the return of tax for the taxable year, or, for a joint return, the valid identification number of at least one spouse is included; and
(B) the qualifying child’s valid identification number is included on the return of tax for the taxable year.
(4) Valid identification number.
(A) In general. “Valid identification number” means a Social Security number, as that term is defined in section 24(h)(7). This section does not define the quoted terms “valid identification number” or “Social Security number.”
(B) Adoption taxpayer identification number. For paragraph (3)(B), if a qualifying child was adopted or placed for adoption, “valid identification number” also includes the child’s adoption taxpayer identification number.
(5) Special rule for members of the Armed Forces. Paragraph (2) does not apply if at least one spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least one spouse is included on the return of tax for the taxable year.
(6) Coordination with certain advance payments. For a payment under subsection (f) based on information supplied under paragraph (5) of that subsection, treat a valid identification number as included on the taxpayer’s return of tax for this subsection if the number is supplied under subsection (f)(5).
(7) Mathematical or clerical error authority. For purposes of applying section 6213(g)(2), an omission of a correct valid identification number required under this subsection is treated as a mathematical or clerical error.
(h) Regulations. The Secretary must prescribe regulations or other guidance needed to carry out the purposes of this section. This includes measures the Secretary considers appropriate to prevent a taxpayer from receiving multiple credits or rebates.
In addition to the credit allowed under section 6428, 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—
$600 ($1,200 in the case of eligible individuals filing a joint return*), plus
an amount equal to the product of $600 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer*.
The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.
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—
$150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
$112,500 in the case of a head of household (as defined in section 2(b)), and
$75,000 in the case of a taxpayer not described in paragraph (1) or (2).
For purposes of this section, the term “eligible individual” means any individual other than—
any nonresident alien individual,
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
an estate or trust.
The amount of the credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).
Except as otherwise provided by the Secretary*, in the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
Each individual who was an eligible individual for such individual’s first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.
For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year—
any individual who was deceased before January 1, 2020, shall be treated for purposes of applying subsection (g) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year, and
no amount shall be determined under this subsection with respect to any qualifying child of the taxpayer if—
the taxpayer was deceased before January 1, 2020, or
in the case of a joint return, both taxpayers were deceased before January 1, 2020.
The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible.
Except as provided in subclause (II), no refund or credit shall be made or allowed under this subsection after January 15, 2021.
In the case of a possession of the United States which has a mirror code tax system (as such terms are defined in section 272(c) of the COVID-related Tax Relief Act of 2020), no refund or credit shall be made or allowed under this subsection after the earlier of—
such date as is determined appropriate by the Secretary, or
September 30, 2021.
Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to—
any account to which the payee authorized, on or after January 1, 2019, the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31, United States Code),
any account belonging to a payee from which that individual, on or after January 1, 2019, made a payment of taxes under this title, or
any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations).
Notwithstanding section 3325 of title 31, United States Code, or any other provision of law, with respect to any payment of a refund under this subsection, a disbursing official in the executive branch of the United States Government may modify payment information received from an officer or employee* described in section 3325(a)(1)(B) of such title for the purpose of facilitating the accurate and efficient delivery of such payment. Except in cases of fraud or reckless neglect, no liability under sections 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed with respect to payments made under this subparagraph.
No interest shall be allowed on any overpayment attributable to this subsection.
In the case of a specified individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may use information with respect to such individual which is provided by—
in the case of a specified social security beneficiary or a specified supplemental security income recipient, the Commissioner* of Social Security,
in the case of a specified railroad retirement beneficiary, the Railroad Retirement Board, and
in the case of a specified veterans beneficiary, the Secretary of Veterans Affairs (in coordination with, and with the assistance of, the Commissioner of Social Security if appropriate).
For purposes of this paragraph, the term “specified individual” means any individual who is—
a specified social security beneficiary,
a specified supplemental security income recipient,
a specified railroad retirement beneficiary, or
a specified veterans beneficiary.
For purposes of this paragraph, the term “specified social security beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to any monthly insurance benefit payable under title II of the Social Security Act (42 U.S.C. 401 et seq.), including payments made pursuant to sections 202(d), 223(g), and 223(i)(7) of such Act.
For purposes of this paragraph, the term “specified social security beneficiary” shall not include any individual if such benefit is not payable for such month by reason of section 202(x)(1)(A) of the Social Security Act (42 U.S.C. 402(x)(1)(A)) or section 1129A of such Act (42 U.S.C. 1320a–8a).
For purposes of this paragraph, the term “specified supplemental security income recipient” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), including—
payments made pursuant to section 1614(a)(3)(C) of such Act (42 U.S.C. 1382c(a)(3)(C)),
payments made pursuant to section 1619(a) (42 U.S.C. 1382h(a)) or subsections (a)(4), (a)(7), or (p)(7) of section 1631 (42 U.S.C. 1383) of such Act, and
State supplementary payments of the type referred to in section 1616(a) of such Act (42 U.S.C. 1382e(a)) (or payments of the type described in section 212(a) of Public Law 93–66) which are paid by the Commissioner under an agreement referred to in such section 1616(a) (or section 212(a) of Public Law 93–66).
For purposes of this paragraph, the term “specified supplemental security income recipient” shall not include any individual if such monthly benefit is not payable for such month by reason of section 1611(e)(1)(A) of the Social Security Act (42 U.S.C. 1382(e)(1)(A)) or section 1129A of such Act (42 U.S.C. 1320a–8a).
For purposes of this paragraph, the term “specified railroad retirement beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) under—
section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1)),
section 2(c) of such Act (45 U.S.C. 231a(c)),
section 2(d)(1) of such Act (45 U.S.C. 231a(d)(1)), or
section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) with respect to any of the benefit payments described in subparagraph (C)(i).
For purposes of this paragraph, the term “specified veterans beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a compensation or pension payment payable under—
section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code,
section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code,
section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code, or
section 1805, 1815, or 1821 of title 38, United States Code,
to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code.
For purposes of this paragraph, the term “specified veterans beneficiary” shall not include any individual if such compensation or pension payment is not payable, or was reduced, for such month by reason of section 1505 or 5313 of title 38, United States Code.
For purposes of this section, any individual’s status as a specified social security beneficiary, a specified supplemental security income recipient, a specified railroad retirement beneficiary, or a specified veterans beneficiary shall be unaffected by any determination or redetermination of any entitlement to, or eligibility for, any benefit, payment, or compensation, if such determination or redetermination occurs after the last month for which the Secretary has available information as of the date of enactment of this section.
If the benefit, payment, or compensation referred to in subparagraph (C)(i), (D)(i), (E), or (F)(i) with respect to any specified individual is paid to a representative payee or fiduciary*, payment by the Secretary under paragraph (3) with respect to such specified individual shall be made to such individual’s representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment.
In the case of a payment described in clause (i) which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a–8(a)(3)) shall apply to such payment in the same manner as such section applies to a payment under title II or XVI of such Act.
In the case of a payment described in clause (i) which is made with respect to a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to such payment in the same manner as such section applies to a payment under such Act.
In the case of a payment described in clause (i) which is made with respect to a specified veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to such payment in the same manner as such sections apply to a payment under such title.
An individual shall not fail to be treated as an eligible individual for purposes of this subsection or subsection (a) merely because such individual is not a specified individual (including by reason of subparagraph (C)(ii), (D)(ii), or (F)(ii)).
As soon as practicable after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, the Secretary shall send notice by mail to such taxpayer’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.
In the case of a return other than a joint return, the $600 amount in subsection (a)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.
In the case of a joint return, the $1,200 amount in subsection (a)(1) shall be treated as being—
$600 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
zero if the valid identification number of neither spouse is so included.
A qualifying child of a taxpayer shall not be taken into account under subsection (a)(2) unless—
the taxpayer includes the valid identification number of such taxpayer (or, in the case of a joint return, the valid identification number of at least 1 spouse) on the return of tax for the taxable year, and
the valid identification number of such qualifying child is included on the return of tax for the taxable year.
For purposes of this subsection, the term “valid identification number” means a social security number (as such term is defined in section 24(h)(7)).
For purposes of paragraph (3)(B), in the case of a qualifying child who is adopted or placed for adoption, the term “valid identification number” shall include the adoption taxpayer identification number of such child.
Paragraph (2) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year.
In the case of any payment under subsection (f) which is based on information provided under paragraph (5) of such subsection, a valid identification number shall be treated for purposes of this subsection as included on the taxpayer’s return of tax if such valid identification number is provided pursuant to subsection (f)(5).
Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including any such measures as are deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer.
Source credit: (Added Pub. L. 116–260, div. N, title II, § 272(a), Dec. 27, 2020, 134 Stat. 1965.)
- 2020Enacted · Pub. L. 116-260 · 134 Stat. 1965
A history note hasn’t been published yet. The record shows enactment by Pub. L. 116-260 on 2020-12-27.
all 0 arguments · sorted by: best
no arguments yet — make the first case