21 st Century Worker Tax Cut Act

Summary: 21st Century Worker Tax Cut Act This bill allows a married taxpayer who files a joint tax return and has at least one qualifying child under the age of 12 a tax credit for 10% of the lesser of $10,000 or the earned income of the spouse with the lower amount of earned income for the taxable year. The credit is denied to nonresident aliens and to taxpayers who fail to include certain identifying information on their tax returns. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21\st\ Century Worker Tax Cut Act''.

SEC. 2. CREDIT FOR DUAL-EARNER FAMILIES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. DUAL-EARNER FAMILIES.

    ``(a) Allowance of Credit.--In the case of an eligible taxpayer, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to 10 percent of the 
lesser of--
            ``(1) $10,000, or
            ``(2) the earned income of the spouse with the lower amount 
        of earned income for such taxable year.
    ``(b) Limitation.--The amount of the credit allowable under 
subsection (a) shall be reduced (but not below zero) by an amount which 
bears the same ratio to the amount determined under subsection (a) (as 
determined without regard to this subsection) as the amount of the 
taxpayer's excess adjusted gross income bears to $20,000.
    ``(c) Definitions.--In this section:
            ``(1) Earned income.--The term `earned income' has the same 
        meaning given such term in section 32(c)(2).
            ``(2) Eligible taxpayer.--
                    ``(A) In general.--The term `eligible taxpayer' 
                means a taxpayer who--
                            ``(i) files a joint return for the taxable 
                        year under section 6013, and
                            ``(ii) has at least 1 qualifying child (as 
                        defined in section 152(c)) who has not attained 
                        12 years of age before the close of the taxable 
                        year.
            ``(3) Excess adjusted gross income.--The term `excess 
        adjusted gross income' means the amount of the eligible 
        taxpayer's adjusted gross income (as defined in section 62, 
        determined without regard to this section) that exceeds 
        $110,000 for the taxable year.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2016, each of the dollar amounts in subsections 
        (a)(1) and (c)(3) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2015' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any dollar amount in subsection (a)(1) 
        or (c)(3), after being increased under paragraph (1), is not a 
        multiple of $1,000, such dollar amount shall be rounded to the 
        nearest multiple of $1,000.
    ``(e) Additional Eligibility Requirements.--
            ``(1) Individual claiming benefits under section 911.--No 
        credit shall be allowed under this section if an individual (or 
        the individual's spouse) claims the benefits of section 911 for 
        the taxable year.
            ``(2) Non-resident aliens.--No credit shall be allowed 
        under this section if an individual (or the individual's 
        spouse) is a nonresident alien individual for any portion of 
        the taxable year unless such individual is treated for such 
        taxable year as a resident of the United States for purposes of 
        this chapter by reason of an election under subsection (g) or 
        (h) of section 6013.
            ``(3) Identification number requirement.--No credit shall 
        be allowed under this section if the eligible taxpayer does not 
        include on the joint return of tax for the taxable year--
                    ``(A) the taxpayer identification number of the 
                individual and the individual's spouse, and
                    ``(B) the name, age, and taxpayer identification 
                number of any qualifying children.
    ``(f) Taxable Year Must Be Full Taxable Year.--Except in the case 
of a taxable year closed by reason of the death of an individual, no 
credit shall be allowable under this section in the case of a taxable 
year covering a period of less than 12 months.''.
    (b) Enhancement of Earned Income Tax Credit.--Section 32 of such 
Code is amended--
            (1) in subsection (a)(2)(B), by striking ``earned income'' 
        and inserting ``modified earned income (as defined in 
        subsection (c)(5))'', and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(5) Modified earned income.--The term `modified earned 
        income' means an amount equal to the earned income of the 
        taxpayer minus an amount equal to the product of--
                    ``(A) the amount of any credit allowed to the 
                taxpayer under section 25E for the taxable year, 
                multiplied by
                    ``(B) 10.''.
    (c) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following:

``Sec. 25E. Dual-earner families.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.