PUBLIC LAW 96-222—APR. 1, 1980 (2) AMENDMENTS RELATED TO SECTION I 0 5 OP THE ACT.—
94 STAT. 195 92 Stat. 2773.
(A) PAYMENTS TREATED AS EARNED INCOME FOR AFDC—
Section 402 of the Social Security Act is amended by adding 42 USC 602. at the end thereof the following new subsection: "(d)(1) For purposes of paragraphs (7) and (8) of subsection (a), any refund of Federal income taxes made by reason of section 43 of the Internal Revenue Code of 1954 (relating to earned income credit) and 26 USC 43. any payment made by an employer under section 3507 of such Code (relating to advance payment of earned income credit) shall be considered earned income. "(2) In any case in which such advance payments for a taxable year made by all employers to an individual under section 3507 of such Code exceed the amount of such individual's earned income credit allowable under section 43 of such Code for such year, so that such individual is liable under section 43(g) of such Code for a tax equal to such excess, such individual's benefit amount must be appropriately adjusted so as to provide payment to such individual of an amount equal to the amount of the benefits lost by such individual on account of such excess advance payments." (B) PAYMENT TREATED AS EARNED INCOME FOR SSI.—Section
1612(a)(1) of the Social Security Act is amended— 42 USC I382a. (i) by striking out "and" at the end of subparagraph (A); and (ii) by adding after subparagraph (B) the following new subparagraph: "(C) any refund of Federal income taxes made by reason of section 43 of the Internal Revenue Code of 1954 (relating to 26 USC 43. earned income credit) and any payment made by an employer under section 3507 of such Code (relating to advance payment of earned income credit); and". (C) TREATMENT OF EXCESS PAYMENTS UNDER SSI.—Section
1631(b) of the Social Security Act is amended by inserting "(1)" after "(b)" and by adding at the end thereof the following new paragraph: "(2) In any case in which advance payments for a taxable year made by all employers to an individual under section 3507 of the Internal Revenue Code of 1954 (relating to advance payment of earned income credit) exceed the amount of such individual's earned income credit allowable under section 43 of such Code for such year, so that such individual is liable under section 43(g) of such Code for a tax equal to such excess, the Secretary shall provide for an appropriate adjustment of such individual's benefit amount under this title so as to provide payment to such individual of an amount equal to the amount of such benefits lost by such individual on account of such excess advance payments." (D) EFFECTIVE DATE FOR ADVANCE PAYMENT OF EARNED INCOME CREDIT.—Paragraph (2) of section 105(g) of the Revenue Act of 1978 (relating to effective date for advance payment of earned income credit) is amended by striking out June 30, 1978" and inserting in lieu thereof "June 30, 1979". (E) CLERICAL AMENDMENT.—Subsection (h) of section 43 (relating to coordination with advance payments of earned income credit) is redesignated as subsection (g). (3) AMENDMENT RELATED TO SECTION 112 OF THE ACT.—Paragraph (8) of section 128(a) (relating to cross references) is amended by striking out "benefits, see" and inserting in lieu thereof "benefits which are not includible in gross income under section 85,".
42 USC 1383.
26 USC 3507.
26 USC 3507 note.
26 USC 43. 92 Stat. 2777. 26 USC 128.
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