I 

108TH CONGRESS 

1ST SESSION H. R. 2718

To amend the Internal Revenue Code of 1986 to provide a uniform definition 

of child, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2003

Mr. BROWN of Ohio introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to provide 

a uniform definition of child, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; PURPOSE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Child Tax Fairness Act of 2003’’. 

6 (b) PURPOSE.—The purposes of the Act are to imple7 ment the recommendation of the National Taxpayer Advo8 cate, simplify the tax code, and promote fairness for all 

9 children by establishing a uniform definition of the term 

10 qualifying child. 
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1 TITLE I—UNIFORM DEFINITION 

2 OF CHILD 

3 SEC. 101. UNIFORM DEFINITION OF CHILD, ETC. 

4 Section 152 of the Internal Revenue Code of 1986 

5 is amended to read as follows: 

6 ‘‘SEC. 152. DEPENDENT DEFINED. 

7 ‘‘(a) IN GENERAL.—For purposes of this subtitle, the 

8 term ‘dependent’ means—

9 ‘‘(1) a qualifying child, or 

10 ‘‘(2) a qualifying relative. 

11 ‘‘(b) EXCEPTIONS.—For purposes of this section—

12 ‘‘(1) DEPENDENTS INELIGIBLE.—If an indi13 vidual is a dependent of a taxpayer for any taxable 

14 year of such taxpayer beginning in a calendar year, 

15 such individual shall be treated as having no depend16 ents for any taxable year of such individual begin17 ning in such calendar year. 

18 ‘‘(2) MARRIED DEPENDENTS.—An individual 

19 shall not be treated as a dependent of a taxpayer 

20 under subsection (a) if such individual has made a 

21 joint return with the individual’s spouse under sec22 tion 6013 for the taxable year beginning in the cal23 endar year in which the taxable year of the taxpayer 

24 begins. 
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1 ‘‘(3) CITIZENS OR NATIONALS OF OTHER COUN2 TRIES.—

3 ‘‘(A) IN GENERAL.—The term ‘dependent’ 

4 does not include an individual who is not a cit5 izen or national of the United States unless 

6 such individual is a resident of the United 

7 States or a country contiguous to the United 

8 States. 

9 ‘‘(B) EXCEPTION FOR ADOPTED CHILD.—

10 Subparagraph (A) shall not exclude any child of 

11 a taxpayer (within the meaning of subsection 

12 (f)(1)(B)) from the definition of ‘dependent’ 

13 if—

14 ‘‘(i) for the taxable year of the tax15 payer, the child’s principal place of abode 

16 is the home of the taxpayer, and 

17 ‘‘(ii) the taxpayer is a citizen or na18 tional of the United States. 

19 ‘‘(c) QUALIFYING CHILD.—For purposes of this sec20 tion—

21 ‘‘(1) IN GENERAL.—The term ‘qualifying child’ 

22 means, with respect to any taxpayer for any taxable 

23 year, an individual—

24 ‘‘(A) who bears a relationship to the tax25 payer described in paragraph (2), 
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1 ‘‘(B) who has the same principal place of 

2 abode as the taxpayer for more than one-half of 

3 such taxable year, 

4 ‘‘(C) who meets the age requirements of 

5 paragraph (3), and 

6 ‘‘(D) who has not provided over one-half of 

7 such individual’s own support for the calendar 

8 year in which the taxable year of the taxpayer 

9 begins. 

10 ‘‘(2) RELATIONSHIP TEST.—For purposes of 

11 paragraph (1)(A), an individual bears a relationship 

12 to the taxpayer described in this paragraph if such 

13 individual is—

14 ‘‘(A) a child of the taxpayer or a descend15 ant of such a child, or 

16 ‘‘(B) a brother, sister, stepbrother, or step17 sister of the taxpayer or a descendant of any 

18 such relative, who the taxpayer cares for as the 

19 taxpayer’s own child. 

20 ‘‘(3) AGE REQUIREMENTS.—

21 ‘‘(A) IN GENERAL.—For purposes of para22 graph (1)(C), an individual meets the require23 ments of this paragraph if such individual—
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1 ‘‘(i) has not attained the age of 19 as 

2 of the close of the calendar year in which 

3 the taxable year of the taxpayer begins, or 

4 ‘‘(ii) is a student who has not attained 

5 the age of 24 as of the close of such cal6 endar year. 

7 ‘‘(B) SPECIAL RULE FOR DISABLED.—In 

8 the case of an individual who is permanently 

9 and totally disabled (as defined in section 

10 22(e)(3)) at any time during such calendar 

11 year, the requirements of subparagraph (A) 

12 shall be treated as met with respect to such in13 dividual.

14 ‘‘(4) SPECIAL RULE RELATING TO 2 OR MORE

15 CLAIMING QUALIFYING CHILD.—

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 subparagraph (B) and subsection (e), if (but for 

18 this paragraph) an individual may be claimed 

19 as a qualifying child by 2 or more taxpayers for 

20 a taxable year beginning in the same calendar 

21 year, such individual shall be treated as the 

22 qualifying child of the taxpayer who is—

23 ‘‘(i) a parent of the individual, or
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1 ‘‘(ii) if clause (i) does not apply, the 

2 taxpayer with the highest adjusted gross 

3 income for such taxable year. 

4 ‘‘(B) MORE THAN 1 PARENT CLAIMING

5 QUALIFYING CHILD.—If the parents claiming 

6 any qualifying child do not file a joint return 

7 together, such child shall be treated as the 

8 qualifying child of—

9 ‘‘(i) the parent with whom the child 

10 resided for the longest period of time dur11 ing the taxable year, or 

12 ‘‘(ii) if the child resides with both par13 ents for the same amount of time during 

14 such taxable year, the parent with the 

15 highest adjusted gross income. 

16 ‘‘(d) QUALIFYING RELATIVE.—For purposes of this 

17 section—

18 ‘‘(1) IN GENERAL.—The term ‘qualifying rel19 ative’ means, with respect to any taxpayer for any 

20 taxable year, an individual—

21 ‘‘(A) who bears a relationship to the tax22 payer described in paragraph (2), 

23 ‘‘(B) whose gross income for the calendar 

24 year in which such taxable year begins is less 
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1 than the exemption amount (as defined in sec2 tion 151(d)), 

3 ‘‘(C) with respect to whom the taxpayer 

4 provides over one-half of the individual’s sup5 port for the calendar year in which such taxable 

6 year begins, and 

7 ‘‘(D) who is not a qualifying child of such 

8 taxpayer for any taxable year beginning in the 

9 calendar year in which such taxable year be10 gins. 

11 ‘‘(2) RELATIONSHIP.—For purposes of para12 graph (1)(A), an individual bears a relationship to 

13 the taxpayer described in this paragraph if the indi14 vidual is any of the following with respect to the tax15 payer: 

16 ‘‘(A) A child or a descendant of a child. 

17 ‘‘(B) A brother, sister, stepbrother, or 

18 stepsister. 

19 ‘‘(C) The father or mother, or an ancestor 

20 of either. 

21 ‘‘(D) A stepfather or stepmother. 

22 ‘‘(E) A son or daughter of a brother or sis23 ter of the taxpayer. 

24 ‘‘(F) A brother or sister of the father or 

25 mother of the taxpayer. 
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1 ‘‘(G) A son-in-law, daughter-in-law, father2 in-law, mother-in-law, brother-in-law, or sister3 in-law. 

4 ‘‘(H) An individual (other than an indi5 vidual who at any time during the taxable year 

6 was the spouse, determined without regard to 

7 section 7703, of the taxpayer) who, for the tax8 able year of the taxpayer, has as such individ9 ual’s principal place of abode the home of the 

10 taxpayer and is a member of the taxpayer’s 

11 household. 

12 ‘‘(3) SPECIAL RULE RELATING TO MULTIPLE

13 SUPPORT AGREEMENTS.—For purposes of paragraph 

14 (1)(C), over one-half of the support of an individual 

15 for a calendar year shall be treated as received from 

16 the taxpayer if—

17 ‘‘(A) no one person contributed over one18 half of such support, 

19 ‘‘(B) over one-half of such support was re20 ceived from 2 or more persons each of whom, 

21 but for the fact that any such person alone did 

22 not contribute over one-half of such support, 

23 would have been entitled to claim such indi24 vidual as a dependent for a taxable year begin25 ning in such calendar year, 
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1 ‘‘(C) the taxpayer contributed over 10 per2 cent of such support, and 

3 ‘‘(D) each person described in subpara4 graph (B) (other than the taxpayer) who con5 tributed over 10 percent of such support files a 

6 written declaration (in such manner and form 

7 as the Secretary may by regulations prescribe) 

8 that such person will not claim such individual 

9 as a dependent for any taxable year beginning 

10 in such calendar year. 

11 ‘‘(4) SPECIAL RULE RELATING TO INCOME OF

12 HANDICAPPED DEPENDENTS.—

13 ‘‘(A) IN GENERAL.—For purposes of para14 graph (1)(B), the gross income of an individual 

15 who is permanently and totally disabled (as de16 fined in section 22(e)(3)) at any time during 

17 the taxable year shall not include income attrib18 utable to services performed by the individual 

19 at a sheltered workshop if—

20 ‘‘(i) the availability of medical care at 

21 such workshop is the principal reason for 

22 the individual’s presence there, and 

23 ‘‘(ii) the income arises solely from ac24 tivities at such workshop which are inci25 dent to such medical care.
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1 ‘‘(B) SHELTERED WORKSHOP DEFINED.—

2 For purposes of subparagraph (A), the term 

3 ‘sheltered workshop’ means a school—

4 ‘‘(i) which provides special instruction 

5 or training designed to alleviate the dis6 ability of the individual, and 

7 ‘‘(ii) which is operated by an organi8 zation described in section 501(c)(3) and 

9 exempt from tax under section 501(a), or 

10 by a State, a possession of the United 

11 States, any political subdivision of any of 

12 the foregoing, the United States, or the 

13 District of Columbia. 

14 ‘‘(5) SPECIAL SUPPORT TEST IN CASE OF STU15 DENTS.—For purposes of paragraph (1)(C), in the 

16 case of an individual who is—

17 ‘‘(A) a child of the taxpayer, and 

18 ‘‘(B) a student, 

19 amounts received as scholarships for study at an 

20 educational organization described in section 

21 170(b)(1)(A)(ii) shall not be taken into account in 

22 determining whether such individual received more 

23 than one-half of such individual’s support from the 

24 taxpayer.
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1 ‘‘(6) SPECIAL RULES FOR SUPPORT.—For pur2 poses of this subsection—

3 ‘‘(A) payments to a spouse which are in4 cludible in the gross income of such spouse 

5 under section 71 or 682 shall not be treated as 

6 a payment by the payor spouse for the support 

7 of any dependent, 

8 ‘‘(B) amounts expended for the support of 

9 a child or children shall be treated as received 

10 from the noncustodial parent (as defined in 

11 subsection (e)(3)(B)) to the extent that such 

12 parent provided amounts for such support, and 

13 ‘‘(C) in the case of the remarriage of a 

14 parent, support of a child received from the 

15 parent’s spouse shall be treated as received 

16 from the parent. 

17 ‘‘(e) SPECIAL RULE FOR CERTAIN PRE-2005 IN18 STRUMENTS.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

20 (c)(4) or subsection (d)(1)(C), a child who has par21 ents who—

22 ‘‘(A) are divorced or legally separated 

23 under a decree of divorce or separate mainte24 nance, 
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1 ‘‘(B) are separated under a written separa2 tion agreement, or 

3 ‘‘(C) live apart at all times during the last 

4 6 months of the calendar year, shall be treated 

5 as being the qualifying child of the noncustodial 

6 parent for a calendar year if the requirements 

7 of subparagraph (B) are met. 

8 ‘‘(2) REQUIREMENTS.—For purposes of sub9 paragraph (A), the requirements of this subpara10 graph are met if—

11 ‘‘(A) such child would, but for this para12 graph, be the qualifying child of the custodial 

13 parent, and 

14 ‘‘(B) a qualified pre-2005 instrument be15 tween the parents is applicable to such child for 

16 the taxable year beginning in such calendar 

17 year. 

18 In the case of an agreement executed before 

19 January 1, 1985, the requirements of this sub20 paragraph are met only if, in addition to meet21 ing the requirements of clauses (i) and (ii), the 

22 noncustodial parent provides at least $600 for 

23 the support of such child during such calendar 

24 year. 
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1 ‘‘(3) QUALIFIED PRE-2005 INSTRUMENT.—For 

2 purposes of this paragraph, the term ‘qualified pre3 2005 instrument’ means any written declaration re4 ferred to in subsection (e)(2) (as in effect on the day 

5 before the date of the enactment of the Child Tax 

6 Fairness Act of 2003)—

7 ‘‘(A) which is executed before January 1, 

8 2005, and 

9 ‘‘(B) which is not modified on or after 

10 such date in a modification which expressly pro11 vides that this subsection shall not apply to 

12 such declaration. 

13 ‘‘(4) CUSTODIAL PARENT AND NONCUSTODIAL

14 PARENT.—For purposes of this subsection—

15 ‘‘(A) CUSTODIAL PARENT.—The term ‘cus16 todial parent’ means the parent with whom a 

17 child shared the same principal place of abode 

18 for the greater portion of the calendar year. 

19 ‘‘(B) NONCUSTODIAL PARENT.—The term 

20 ‘noncustodial parent’ means the parent who is 

21 not the custodial parent. 

22 ‘‘(5) EXCEPTION FOR MULTIPLE-SUPPORT

23 AGREEMENTS.—This subsection shall not apply in 

24 any case where over one-half of the support of the 
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1 child is treated as having been received from a tax2 payer under the provision of subsection (d)(3). 

3 ‘‘(f) OTHER DEFINITIONS AND RULES.—For pur4 poses of this section—

5 ‘‘(1) CHILD DEFINED.—

6 ‘‘(A) IN GENERAL.—The term ‘child’ 

7 means an individual who is—

8 ‘‘(i) a son, daughter, stepson, or step9 daughter of the taxpayer, or 

10 ‘‘(ii) an eligible foster child of the tax11 payer. 

12 ‘‘(B) ADOPTED CHILD.—In determining 

13 whether any of the relationships specified in 

14 subparagraph (A)(i) or paragraph (4) exists, a 

15 legally adopted individual of the taxpayer, or an 

16 individual who is placed with the taxpayer by 

17 an authorized placement agency for adoption by 

18 the taxpayer, shall be treated as a child of such 

19 individual by blood. 

20 ‘‘(C) ELIGIBLE FOSTER CHILD.—For pur21 poses of subparagraph (A)(ii), the term ‘eligible 

22 foster child’ means an individual who is placed 

23 with the taxpayer by an authorized placement 

24 agency or by judgment, decree, or other order 

25 of any court of competent jurisdiction. 
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1 ‘‘(2) STUDENT DEFINED.—The term ‘student’ 

2 means an individual who during each of 5 calendar 

3 months during the calendar year in which the tax4 able year of the taxpayer begins—

5 ‘‘(A) is a full-time student at an edu6 cational organization described in section 

7 170(b)(1)(A)(ii), or 

8 ‘‘(B) is pursuing a full-time course of insti9 tutional on-farm training under the supervision 

10 of an accredited agent of an educational organi11 zation described in section 170(b)(1)(A)(ii) or 

12 of a State or political subdivision of a State. 

13 ‘‘(3) PLACE OF ABODE.—An individual shall 

14 not be treated as having the same principal place of 

15 abode of the taxpayer if at any time during the tax16 able year of the taxpayer the relationship between 

17 the individual and the taxpayer is in violation of 

18 local law. 

19 ‘‘(4) BROTHER AND SISTER.—The terms 

20 ‘brother’ and ‘sister’ include a brother or sister by 

21 the half blood. 

22 ‘‘(5) TREATMENT OF MISSING CHILDREN.—

23 ‘‘(A) IN GENERAL.—Solely for the pur24 poses referred to in subparagraph (B), a child 

25 of the taxpayer—
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1 ‘‘(i) who is presumed by law enforce2 ment authorities to have been kidnapped 

3 by someone who is not a member of the 

4 family of such child or the taxpayer, and 

5 ‘‘(ii) who had, for the taxable year in 

6 which the kidnapping occurred, the same 

7 principal place of abode as the taxpayer for 

8 more than one-half of the portion of such 

9 year before the date of the kidnapping, 

10 shall be treated as meeting the requirement of 

11 subsection (c)(1)(B) with respect to a taxpayer 

12 for all taxable years ending during the period 

13 that the individual is kidnapped. 

14 ‘‘(B) PURPOSES.—Subparagraph (A) shall 

15 apply solely for purposes of determining—

16 ‘‘(i) the deduction under section 

17 151(c), 

18 ‘‘(ii) the credit under section 24 (re19 lating to child tax credit), 

20 ‘‘(iii) whether an individual is a sur21 viving spouse or a head of a household (as 

22 such terms are defined in section 2), and 

23 ‘‘(iv) the earned income credit under 

24 section 32. 
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1 ‘‘(C) COMPARABLE TREATMENT OF CER2 TAIN QUALIFYING RELATIVES.—For purposes 

3 of this section, a child of the taxpayer—

4 ‘‘(i) who is presumed by law enforce5 ment authorities to have been kidnapped 

6 by someone who is not a member of the 

7 family of such child or the taxpayer, and 

8 ‘‘(ii) who was (without regard to this 

9 paragraph) a qualifying relative of the tax10 payer for the portion of the taxable year 

11 before the date of the kidnapping, 

12 shall be treated as a qualifying relative of the 

13 taxpayer for all taxable years ending during the 

14 period that the child is kidnapped.

15 ‘‘(D) TERMINATION OF TREATMENT.—

16 Subparagraphs (A) and (C) shall cease to apply 

17 as of the first taxable year of the taxpayer be18 ginning after the calendar year in which there 

19 is a determination that the child is dead (or, if 

20 earlier, in which the child would have attained 

21 age 18). 

22 ‘‘(6) ATTAINMENT OF AGE.—For purposes of 

23 this section, an individual is deemed to have attained 

24 an age on the anniversary of such individual’s date 

25 of birth. 
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1 ‘‘(7) CROSS REFERENCES.—

‘‘For provision treating child as dependent of both 

parents for purposes of certain provisions, see sections 105(b), 132(h)(2)(B), and 213(d)(5).’’.

2 SEC. 102. MODIFICATIONS OF DEPENDENT CARE CREDIT. 

3 (a) IN GENERAL.—Section 21(a)(1) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘In the case 

5 of an individual who maintains a household which includes 

6 as a member one or more qualifying individuals (as de7 fined in subsection (b)(1))’’ and inserting ‘‘In the case of 

8 an individual for which there are 1 or more qualifying indi9 viduals (as defined in subsection (b)(1)) with respect to 

10 such individual’’. 

11 (b) QUALIFYING INDIVIDUAL.—Paragraph (1) of sec12 tion 21(b) of the Internal Revenue Code of 1986 is amend13 ed to read as follows: 

14 ‘‘(1) QUALIFYING INDIVIDUAL.—The term 

15 ‘qualifying individual’ means—

16 ‘‘(A) a dependent of the taxpayer (as de17 fined in section 152(a)(1)) who has not attained 

18 age 13, determined without regard to section 

19 152(e), 

20 ‘‘(B) a dependent of the taxpayer who is 

21 physically or mentally incapable of caring for 

22 himself or herself and who has the same prin23 cipal place of abode as the taxpayer for more 

24 than one-half of such taxable year, or 
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1 ‘‘(C) the spouse of the taxpayer, if the 

2 spouse is physically or mentally incapable of 

3 caring for himself or herself and who has the 

4 same principal place of abode as the taxpayer 

5 for more than one-half of such taxable year.’’. 

6 (c) CONFORMING AMENDMENT.—Paragraph (1) of 

7 section 21(e) of the Internal Revenue Code of 1986 is 

8 amended to read as follows: 

9 ‘‘(1) PLACE OF ABODE.—An individual shall 

10 not be treated as having the same principal place of 

11 abode of the taxpayer if at any time during the tax12 able year of the taxpayer the relationship between 

13 the individual and the taxpayer is in violation of 

14 local law. ’’. 

15 SEC. 103. MODIFICATIONS OF CHILD TAX CREDIT. 

16 (a) IN GENERAL.—Paragraph (1) of section 24(c) of 

17 the Internal Revenue Code of 1986 is amended to read 

18 as follows: 

19 ‘‘(1) IN GENERAL.—The term ‘qualifying child’ 

20 means a qualifying child of the taxpayer (as defined 

21 in section 152(c)), determined without regard to sec22 tion 152(e), who has not attained age 17.’’. 

23 (b) CONFORMING AMENDMENT.—Section 24(c)(2) of 

24 the Internal Revenue Code of 1986 is amended by striking 
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1 ‘‘the first sentence of section 152(b)(3)’’ and inserting 

2 ‘‘subparagraph (A) of section 152(b)(3)’’. 

3 SEC. 104. MODIFICATIONS OF EARNED INCOME CREDIT. 

4 (a) QUALIFYING CHILD.—Paragraph (3) of section 

5 32(c) of the Internal Revenue Code of 1986 is amended 

6 to read as follows: 

7 ‘‘(3) QUALIFYING CHILD.—

8 ‘‘(A) IN GENERAL.—The term ‘qualifying 

9 child’ means a qualifying child of the taxpayer 

10 (as defined in section 152(c), determined with11 out regard to paragraph (1)(D) thereof and sec12 tion 152(e)). 

13 ‘‘(B) MARRIED INDIVIDUAL.—The term 

14 ‘qualifying child’ shall not include an individual 

15 who is married as of the close of the taxpayer’s 

16 taxable year unless the taxpayer is entitled to 

17 a deduction under section 151 for such taxable 

18 year with respect to such individual (or would 

19 be so entitled but for section 152(e)).

20 ‘‘(C) PLACE OF ABODE.—For purposes of 

21 subparagraph (A), the requirements of section 

22 152(c)(1)(B) shall be met only if the principal 

23 place of abode is in the United States. 

24 ‘‘(D) IDENTIFICATION REQUIREMENTS.—
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1 ‘‘(i) IN GENERAL.—A qualifying child 

2 shall not be taken into account under sub3 section (b) unless the taxpayer includes the 

4 name, age, and TIN of the qualifying child 

5 on the return of tax for the taxable year. 

6 ‘‘(ii) OTHER METHODS.—The Sec7 retary may prescribe other methods for 

8 providing the information described in 

9 clause (i).’’. 

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 32(c)(1) of the Internal Revenue 

12 Code of 1986 is amended by striking subparagraph 

13 (C) and by redesignating subparagraphs (D), (E), 

14 (F), and (G) as subparagraphs (C), (D), (E), and 

15 (F), respectively. 

16 (2) Section 32(c)(4) of such Code is amended 

17 by striking ‘‘(3)(E)’’ and inserting ‘‘(3)(C)’’. 

18 (3) Section 32(m) of such Code is amended by 

19 striking ‘‘subsections (c)(1)(F)’’ and inserting ‘‘sub20 sections (c)(1)(E)’’. 

21 SEC. 105. MODIFICATIONS OF DEDUCTION FOR PERSONAL 

22 EXEMPTION FOR DEPENDENTS. 

23 Subsection (c) of section 151 of the Internal Revenue 

24 Code of 1986 is amended to read as follows: 
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1 ‘‘(c) ADDITIONAL EXEMPTION FOR DEPENDENTS.—

2 An exemption of the exemption amount for each individual 

3 who is a dependent (as defined in section 152) of the tax4 payer for the taxable year.’’

5 SEC. 106. TECHNICAL AND CONFORMING AMENDMENTS. 

6 (1) Section 21(e)(5) of the Internal Revenue 

7 Code of 1986 is amended—

8 (A) by striking ‘‘paragraph (2) or (4) of’’ 

9 in subparagraph (A), and 

10 (B) by striking ‘‘within the meaning of sec11 tion 152(e)(1)’’ and inserting ‘‘as defined in 

12 section 152(e)(3)(A)’’. 

13 (2) Section 21(e)(6)(B) of such Code is amend14 ed by striking ‘‘section 151(c)(3)’’ and inserting 

15 ‘‘section 152(f)(1)’’. 

16 (3) Section 25B(c)(2)(B) of such Code is 

17 amended by striking ‘‘151(c)(4)’’ and inserting 

18 ‘‘152(f)(2)’’. 

19 (4)(A) Subparagraphs (A) and (B) of section 

20 51(i)(1) of such Code are each amended by striking 

21 ‘‘paragraphs (1) through (8) of section 152(a)’’ both 

22 places it appears and inserting ‘‘subparagraphs (A) 

23 through (G) of section 152(d)(2)’’. 
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1 (B) Section 51(i)(1)(C) of such Code is amend2 ed by striking ‘‘152(a)(9)’’ and inserting 

3 ‘‘152(d)(2)(H)’’. 

4 (5) Section 72(t)(7)(A)(iii) of such Code is 

5 amended by striking ‘‘151(c)(3)’’ and inserting 

6 ‘‘152(f)(1)’’. 

7 (6) Section 129(c)(2) of such Code is amended 

8 by striking ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’. 

9 (7) The first sentence of section 132(h)(2)(B) 

10 of such Code is amended by striking ‘‘151(c)(3)’’ 

11 and inserting ‘‘152(f)(1)’’. 

12 (8) Section 153 of such Code is amended by 

13 striking paragraph (1) and by redesignating para14 graphs (2), (3), and (4) as paragraphs (1), (2), and 

15 (3), respectively. 

16 (9) Section 170(g)(3) of such Code is amended 

17 by striking ‘‘paragraphs (1) through (8) of section 

18 152(a)’’ and inserting ‘‘subparagraphs (A) through 

19 (G) of section 152(d)(2)’’. 

20 (10) The second sentence of section 213(d)(11) 

21 of such Code is amended by striking ‘‘paragraphs 

22 (1) through (8) of section 152(a)’’ and inserting 

23 ‘‘subparagraphs (A) through (G) of section 

24 152(d)(2)’’. 
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1 (11) Section 529(e)(2)(B) of such Code is 

2 amended by striking ‘‘paragraphs (1) through (8) of 

3 section 152(a)’’ and inserting ‘‘subparagraphs (A) 

4 through (G) of section 152(d)(2)’’. 

5 (12) Section 2032A(c)(7)(D) of such Code is 

6 amended by striking ‘‘section 151(c)(4)’’ and insert7 ing ‘‘section 152(f)(2)’’. 

8 (13) Section 7701(a)(17) of such Code is 

9 amended by striking ‘‘152(b)(4), 682,’’ and inserting 

10 ‘‘682’’. 

11 (14) Section 7702B(f)(2)(C)(iii) of such Code is 

12 amended by striking ‘‘paragraphs (1) through (8) of 

13 section 152(a)’’ and inserting ‘‘subparagraphs (A) 

14 through (G) of section 152(d)(2)’’. 

15 (15) Section 7703(b)(1) of such Code is amend16 ed—

17 (A) by striking ‘‘151(c)(3)’’ and inserting 

18 ‘‘152(f)(1)’’, and 

19 (B) by striking ‘‘paragraph (2) or (4) of’’. 

20 SEC. 107. EFFECTIVE DATE. 

21 The amendments made by this title shall apply to tax22 able years beginning after December 31, 2003. 
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1 TITLE II—OTHER 

2 SIMPLIFICATION PROVISIONS

3 SEC. 201. HEAD OF HOUSEHOLD FILING STATUS REPLACED 

4 WITH SPECIAL PERSONAL EXEMPTION. 

5 (a) INCREASED PERSONAL EXEMPTION FOR SINGLE

6 PARENTS, ETC.—Section 151 of the Internal Revenue 

7 Code of 1986 is amended by redesignating subsections (d) 

8 and (e) as subsection (e) and (f) and by inserting after 

9 subsection (c) the following new subsection:

10 ‘‘(d) ADDITIONAL EXEMPTION FOR SINGLE PAR11 ENTS, ETC.—

12 ‘‘(1) IN GENERAL.—An exemption of $3,700 in 

13 the case of an individual who—

14 ‘‘(A) is not married at the close of the tax15 able year, 

16 ‘‘(B) is not a surviving spouse, and 

17 ‘‘(C)(i) maintains as his home a household 

18 which constitutes for more than one-half of 

19 such taxable year the principal place of abode, 

20 as a member of such household, of—

21 ‘‘(I) a qualifying child, or 

22 ‘‘(II) a qualifying relative if the tax23 payer is entitled to a deduction for the tax24 able year for such person under subsection 

25 (c), or
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1 ‘‘(ii) maintains a household which con2 stitutes for such taxable year the principal place 

3 of abode of the father or mother of the tax4 payer, if the taxpayer is entitled to a deduction 

5 for the taxable year for such father or mother 

6 under subsection (c). 

7 For purposes of this paragraph, an individual shall 

8 be considered as maintaining a household only if 

9 over half of the cost of maintaining the household 

10 during the taxable year is furnished by such indi11 vidual. 

12 ‘‘(2) MARITAL STATUS.—Marital status shall be 

13 determined in accordance with section 7703; except 

14 that an individual shall be treated as not married for 

15 purposes of this subsection if at any time during 

16 such year the spouse of such individual is a non17 resident alien. 

18 ‘‘(3) LIMITATIONS.—Paragraph (1) shall not 

19 apply to any individual—

20 ‘‘(A) if at any time during the taxable year 

21 he is a nonresident alien, or 

22 ‘‘(B) who would not be a dependent for the 

23 taxable year but for section 152(d)(3). 

24 ‘‘(4) INFLATION ADJUSTMENT.—
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1 ‘‘(A) IN GENERAL.—In the case of a tax2 able year beginning in a calendar year after 

3 2004, the dollar amount contained in paragraph 

4 (1) shall be increased by an amount equal to—

5 ‘‘(i) such dollar amount, multiplied by 

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f )(3) for the cal8 endar year in which the taxable year be9 gins, determined by substituting ‘calendar 

10 year 2003’ for ‘calendar year 1992’ in sub11 paragraph (B) thereof. 

12 ‘‘(B) ROUNDING.—Any increase deter13 mined under subparagraph (A) shall be rounded 

14 to the nearest multiple of $50.’’. 

15 (b) REPEAL OF HEAD OF HOUSEHOLD FILING STA16 TUS.—Subsection (b) of section 1 of such Code (relating 

17 to heads of household) is repealed. 

18 (c) CONFORMING AMENDMENTS.—

19 (1) Section 1(c) of such Code is amended—

20 (A) in the heading by striking ‘‘SPOUSES

21 AND HEADS OF HOUSEHOLDS).—’’ and insert22 ing ‘‘SPOUSES).—’’, and 

23 (B) by striking ‘‘or the head of a house24 hold as defined in section 2(b)’’. 
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1 (2) Section 2 of such Code is amended by strik2 ing subsection (b) and by redesignating subsections 

3 (c), (d), and (e) as subsections (b), (c), and (d), re4 spectively. 

5 (3) Section 25B(b) of such Code is amended by 

6 striking the portion of the table related to head of 

7 a household. 

8 (4) Section 63(c)(2) of such Code is amended—

9 (A) by striking subparagraph (B), and 

10 (B) by redesignating subparagraphs (C) 

11 and (D) as subparagraphs (B) and (C), respec12 tively. 

13 (5) Section 151(c)(6)(B)(iii) of such Code is 

14 amended by striking ‘‘or a head of a household (as 

15 such terms are defined in section 2)’’ and inserting 

16 ‘‘(as defined in section 2)’’. 

17 (6) Section 151(c)(6)(C) of such Code is 

18 amended by striking ‘‘, section 2(b)(1)(A),’’. 

19 (7) Section 151(e)(3)(C) of such Code is 

20 amended—

21 (A) by striking clause (ii), 

22 (B) in clause (iii), by striking ‘‘or head of 

23 a household’’, and 

24 (C) by redesignating clauses (iii) and (iv) 

25 as clauses (ii) and (iii), respectively. 
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1 (8) Section 152(f)(5)(B)(iii) of such Code, as 

2 amended by title I, is amended to read as follows: 

3 ‘‘(iii) whether an individual is a sur4 viving spouse (as defined in section 2), 

5 and’’. 

6 (9) Section 3402(r)(2)(A) of such Code is 

7 amended by striking ‘‘section 63(c)(2)(C)’’ and in8 serting ‘‘section 63(c)(2)(B)’’. 

9 (10) Section 6012(a)(1)(A) of such Code is 

10 amended—

11 (A) in clause (i), by striking ‘‘is not a head 

12 of a household (as defined in section 2(b)),’’, 

13 (B) by striking clause (ii), 

14 (C) by redesignating clauses (iii) and (iv) 

15 as clauses (ii) and (iii), respectively, and

16 (D) in the last sentence, by striking 

17 ‘‘Clause (iv)’’ and inserting ‘‘Clause (iii)’’ and 

18 by striking ‘‘151(c)’’ and inserting ‘‘151(d)’’. 

19 (11) Section 6012(a)(1)(B) of such Code is 

20 amended—

21 (A) by striking ‘‘clause (i), (ii), or (iii)’’ 

22 and inserting ‘‘clause (i) or (ii)’’, and 

23 (B) by striking ‘‘clause (iv)’’ and inserting 

24 ‘‘clause (iii)’’. 
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1 (12)(A) Paragraph (6) of section 1(f) of such 

2 Code is amended by striking ‘‘151(d)(4)(A)’’ and in3 serting ‘‘151(e)(4)(A)’’. 

4 (B) Subparagraph (C) of section 642(b)(2) of 

5 such Code is amended by striking ‘‘151(d)’’ and in6 serting ‘‘151(e)’’. 

7 (C) Paragraph (1) of section 3402(f) of such 

8 Code is amended by striking ‘‘151(d)(2)’’ and insert9 ing ‘‘151(e)(2)’’. 

10 (D) Subparagraph (B) of section 3402(r)(2) of 

11 such Code is amended by striking ‘‘151(d)’’ and in12 serting ‘‘151(e)’’. 

13 (E) Clause (ii) of section 6012(a)(1)(D) of such 

14 Code is amended—

15 (i) by striking ‘‘151(d)’’ and inserting 

16 ‘‘151(e)’’, and 

17 (ii) by striking ‘‘151(d)(2)’’ and inserting 

18 ‘‘151(e)(2)’’. 

19 (F) The next to the last sentence of section 

20 6013(b)(3)(A) of such Code is amended by striking 

21 ‘‘151(d)’’ and inserting ‘‘151(e)’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2003.
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1 SEC. 202. TREATMENT OF GOVERNMENT BENEFITS IN DE2 TERMINING SUPPORT AND COST OF MAIN3 TAINING HOUSEHOLD. 

4 (a) DEPENDENCY EXEMPTION.—Section 152 of the 

5 Internal Revenue Code of 1986, as amended by title I, 

6 is amended by adding at the end the following new sub7 section: 

8 ‘‘(g) SPECIAL RULE RELATING TO TREATMENT OF

9 GOVERNMENT BENEFITS IN DETERMINING SUPPORT.—

10 For purposes of this part, any means-tested benefits ob11 tained under programs described in section 6103(l)(7) or 

12 substantially similar government programs shall not be 

13 taken into account for purposes of determining—

14 ‘‘(1) whether over half of the support of an in15 dividual for a calendar year is received from a tax16 payer, and 

17 ‘‘(2) whether over half of the cost of maintain18 ing a household is furnished by a taxpayer.’’. 

19 (b) DEPENDENT CARE CREDIT.—Section 21(e)(1) of 

20 such Code is amended by adding at the end the following: 

21 ‘‘Any means-tested benefits obtained under programs de22 scribed in section 6103(l)(7) or substantially similar gov23 ernment programs shall not be taken into account for pur24 poses of determining whether over half of the cost of main25 taining a household is furnished by the individual.’’. 
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1 (c) MARITAL STATUS.—Section 7703 of such Code 

2 (relating to determination of marital status) is amended 

3 by adding at the end the following new subsection: 

4 ‘‘(c) SPECIAL RULE RELATING TO TREATMENT OF

5 GOVERNMENT BENEFITS IN DETERMINING COST OF

6 MAINTAINING HOUSEHOLD.—For purposes of subsection 

7 (b)(2), any means-tested benefits obtained under pro8 grams described in section 6103(l)(7) or substantially 

9 similar government programs shall not be taken into ac10 count for purposes of determining whether over half of the 

11 cost of maintaining a household is furnished by the indi12 vidual.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2003.

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