Foster EITC Act of 2015

Summary: Foster EITC Act of 2015 This bill amends the Internal Revenue Code to modify the earned income tax credit by: (1) making permanent the increase in the rate of such credit for taxpayers with three or more children, (2) increasing the credit for taxpayers with no qualifying children, (3) reducing the qualifying age for such credit for certain childless individuals (from age 25 to age 21) and for youth formerly in foster care (from age 25 to age 18), (4) imposing new reporting requirements for youth in foster care who have attained age 16, and (5) revising eligibility rules relating to married individuals living apart and qualifying children claimed by another family member.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foster EITC Act of 2015''.

SEC. 2. PERMANENT EXTENSION OF MODIFICATIONS TO EARNED INCOME TAX 
              CREDIT.

    (a) Increase in Credit Percentage for Families With 3 or More 
Children.--Paragraph (1) of section 32(b) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``The credit'' and inserting the following:
                    ``(A) In general.--The credit'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Increased credit percentage for families with 
                3 or more qualifying children.--In the case of an 
                eligible individual with 3 or more qualifying children, 
                the table in subparagraph (A) shall be applied by 
                substituting `45' for `40' in the second column 
                thereof.''.
    (b) Joint Returns.--
            (1) In general.--Subparagraph (B) of section 32(b)(2) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``$3,000'' and inserting ``$5,000.''.
            (2) Inflation adjustments.--Clause (ii) of section 
        32(j)(1)(B) of such Code is amended--
                    (A) by striking ``$3,000'' and inserting 
                ``$5,000'',
                    (B) by striking ``subsection (b)(2)(B)(iii)'' and 
                inserting ``subsection (b)(2)(B)'', and
                    (C) by striking ``calendar year 2007'' and 
                inserting ``calendar year 2008''.
    (c) Conforming Amendment.--Section 32(b)of such Code is amended by 
striking paragraph (3).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. STRENGTHENING THE EARNED INCOME TAX CREDIT.

    (a) Increased Credit for Individuals With No Qualifying Children.--
            (1) In general.--The table in subparagraph (A) of section 
        32(b)(2) of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$4,220'' in the second column and 
                inserting ``$8,820'', and
                    (B) by striking ``$5,280'' in the last column and 
                inserting ``$10,425''.
            (2) Inflation adjustments.--Subparagraph (B) of section 
        32(j)(1) of the Internal Revenue Code of 1986, as amended by 
        this Act, is amended--
                    (A) in clause (i)--
                            (i) by inserting ``(except as provided in 
                        clause (iii))'' after ``(b)(2)(A)'', and
                            (ii) by striking ``and'' at the end, and
                    (B) by adding at the end the following new clause:
                            ``(iii) in the case of the $8,820 and 
                        $10,4250 amount in the table in subsection 
                        (b)(2)(A), by substituting `calendar year 2011' 
                        for `calendar year 1992' in subparagraph (B) of 
                        such section 1.''.
    (b) Credit Increase and Reduction in Phaseout for Individuals With 
No Children.--The table contained in section 32(b)(1)(A) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended--
            (1) by striking ``7.65'' in the second column of the third 
        row and inserting ``15.3'', and
            (2) by striking ``7.65'' in the third column of the third 
        row and inserting ``15.3''.
    (c) Lowering Eligibility Age for Certain Childless Individuals and 
Youth Formerly in Foster Care.--
            (1) In general.--Subclause (II) of section 32(c)(1)(A)(ii) 
        of the Internal Revenue Code of 1986 is amended by striking 
        ``age 25'' and inserting ``age 21 (or, in the case of youth 
        formerly in foster care, age 18)''.
            (2) Youth formerly in foster care.--Subsection (c) of 
        section 32 of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(G) Youth formerly in foster care.--For purposes 
                of subparagraph (A)(ii)(II), the term `youth formerly 
                in foster care' means an individual who was in foster 
                care on or after the date that such individual attained 
                16 years of age.''.
            (3) Returns relating to youth in foster care.--
                    (A) In general.--Subpart B of part III of 
                subchapter A of chapter 61 of the Internal Revenue Code 
                of 1986 is amended by inserting after section 6050W the 
                following new section:

``SEC. 6050X. RETURNS RELATING TO YOUTH IN FOSTER CARE.

    ``(a) Requirement of Reporting.--
            ``(1) In general.--Any State, local, or tribal agency 
        responsible for reporting data to the Adoption and Foster Care 
        Analysis and Reporting System shall make a return, at such 
        times as the Secretary may prescribe, described in subsection 
        (b) with respect to any individual who is in foster care within 
        the jurisdiction of such State, locality, or tribe on or after 
        the date that such individual attained 16 years of age.
            ``(2) Single return.--Except as provided by the Secretary, 
        a State, local, or tribal agency described in paragraph (1) 
        which has made a return for an individual described in such 
        paragraph shall not be required to make a return for such 
        individual for any subsequent calendar year.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains, with respect to each individual described 
        in subsection (a)(1)--
                    ``(A) the name, date of birth, and TIN of such 
                individual,
                    ``(B) the identification number assigned to such 
                individual for purposes of the statewide or tribal 
                automated child welfare information system, and
                    ``(C) such other information as the Secretary may 
                prescribe.
    ``(c) Statement To Be Furnished to Individuals With Respect to Whom 
Information Is Required.--
            ``(1) In general.--Every person required to make a return 
        under subsection (a) shall furnish to each person whose name is 
        required to be set forth in such return a written statement 
        showing--
                    ``(A) the name and address of the person required 
                to make such return and the phone number of the 
                information contact for such person, and
                    ``(B) the information required to be shown on the 
                return with respect to such individual.
            ``(2) Date.--The written statement required under paragraph 
        (1) shall be furnished on or before January 31 of the year 
        following the calendar year for which the return under 
        subsection (a) is required to be made.''.
                    (B) Assessable penalties.--Subparagraph (B) of 
                section 6724(d)(1) of such Code is amended--
                            (i) by redesignating clauses (xxiv) and 
                        (xxv) as clauses (xxv) and (xxvi), 
                        respectively, and
                            (ii) by inserting after clause (xxiii) the 
                        following new clause:
                            ``(xxiv) section 6050X (relating to returns 
                        relating to youth in foster care),''.
                    (C) Conforming amendment.--The table of sections 
                for subpart B of part III of subchapter A of chapter 61 
                of such Code is amended by adding at the end the 
                following new item:

``Sec. 6050X. Returns relating to youth in foster care.''.
    (d) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 4. SIMPLIFYING THE EARNED INCOME TAX CREDIT.

    (a) Modification of Abandoned Spouse Rule.--
            (1) In general.--Section 32(c)(1) of the Internal Revenue 
        Code of 1986, as amended by this Act, is amended by adding at 
        the end the following new paragraph:
                    ``(H) Certain married individuals living apart.--
                For purposes of this section, an individual who--
                            ``(i) is married (within the meaning of 
                        section 7703(a)) and files a separate return 
                        for the taxable year,
                            ``(ii) lives with a qualifying child of the 
                        individual for more than one-half of such 
                        taxable year, and
                            ``(iii)(I) during the last 6 months of such 
                        taxable year, does not have the same principal 
                        place of abode as the individual's spouse, or
                            ``(II) has a legally binding separation 
                        agreement with the individual's spouse and is 
                        not a member of the same household with the 
                        individual's spouse by the end of the taxable 
                        year,
                shall not be considered as married.''.
            (2) Conforming amendments.--
                    (A) The last sentence of section 32(c)(1)(A) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``section 7703'' and inserting ``section 7703(a)''.
                    (B) Section 32(d) of such Code is amended by 
                striking ``In the case of an individual who is married 
                (within the meaning of section 7703)'' and inserting 
                ``In the case of an individual who is married (within 
                the meaning of section 7703(a)) and is not described in 
                subsection (c)(1)(H)''.
    (b) Simplification of Rules Regarding Presence of Qualifying 
Child.--
            (1) Taxpayer eligible for credit for worker without 
        qualifying child if qualifying child claimed by another member 
        of family.--Section 32(c)(1) of the Internal Revenue Code of 
        1986, as amended by this Act, is amended by adding at the end 
        the following new paragraph:
                    ``(I) Taxpayer eligible for credit for worker 
                without qualifying child if qualifying child claimed by 
                another member of family.--
                            ``(i) General rule.--Except as provided in 
                        clause (ii), in the case of 2 or more eligible 
                        individuals who may claim for such taxable year 
                        the same individual as a qualifying child, if 
                        such individual is claimed as a qualifying 
                        child by such an eligible individual, then any 
                        other such eligible individual who does not 
                        make such a claim of such child or of any other 
                        qualifying child may be considered an eligible 
                        individual without a qualifying child for 
                        purposes of the credit allowed under this 
                        section for such taxable year.
                            ``(ii) Exception if qualifying child 
                        claimed by parent.--If an individual is claimed 
                        as a qualifying child for any taxable year by 
                        an eligible individual who is a parent of such 
                        child, then no other custodial parent of such 
                        child who does not make such a claim of such 
                        child may be considered an eligible individual 
                        without a qualifying child for purposes of the 
                        credit allowed under this section for such 
                        taxable year.''.
            (2) Taxpayer eligible for credit for worker without 
        qualifying child if qualifying children do not have valid 
        social security number.--Subparagraph (F) of section 32(c)(1) 
        of the Internal Revenue Code of 1986 is amended to read as 
        follows:
                    ``(F) Individuals who do not include tin, etc., of 
                any qualifying child.--In the case of any eligible 
                individual who has one or more qualifying children, if 
                no qualifying child of such individual is taken into 
                account under subsection (b) by reason of paragraph 
                (3)(D), for purposes of the credit allowed under this 
                section, such individual may be considered an eligible 
                individual without a qualifying child.''.
    (c) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.