"(2) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC. — Except as otherwise provided in this section, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under subsection (a)."
IN GENERAL.—If the
earned income of the tax23 payer for the taxpayer’s first taxable year beginning in
24 2020 is less than the
earned income of the taxpayer for
25 the preceding taxable year, the credits allowed under secDecember 21, 2020 (7:54 a.m.)
2480
U:\2021OMNI\14OMNI\DivO-FF.xml SEN. APPRO.
1 tions 24(d) and 32 of the Internal Revenue Code of 1986
2 may, at the election of the taxpayer, be determined by sub3 stituting—
4 (1) such earned income for the preceding tax5 able year, for
6 (2) such earned income for the taxpayer’s first
7 taxable year beginning in 2020.
8 (b) EARNED INCOME.—
9 (1) IN GENERAL.—For purposes of this section,
10 the term ‘‘earned income’’ has the meaning given
11 such term under section 32(c) of the Internal Rev12 enue Code of 1986.
13 (2) APPLICATION TO JOINT RETURNS.—For
14 purposes of subsection (a), in the case of a joint re15 turn, the earned income of the taxpayer for the pre16 ceding taxable year shall be the sum of the earned
17 income of each spouse for such preceding taxable
18 year.