I 
108TH CONGRESS 
1ST SESSION H. R. 2392
To amend the Internal Revenue Code of 1986 to accelerate the increase 
in the refundability of the child tax credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2003
Mr. CASTLE (for himself, Mr. TANNER, Mr. UPTON, Mr. MOORE, Mr. BOEH-
LERT, and Mr. ALEXANDER) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to accelerate 
the increase in the refundability of the child tax credit, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Relief for Working 
Families Tax Act of 2003’’. 
TITLE I—CHILD TAX CREDIT 
SEC. 101. ACCELERATION OF INCREASE IN REFUNDABILITY 
OF THE CHILD TAX CREDIT. 
(a) ACCELERATION OF REFUNDABILITY.—
(1) IN GENERAL.—Section 24(d)(1)(B)(i) of the 
Internal Revenue Code of 1986 (relating to portion 
of credit refundable) is amended by striking ‘‘(10 
percent in the case of taxable years beginning before 
January 1, 2005)’’. 
(2) ADVANCE PAYMENT.—Subsection (b) of sec-
tion 6429 of such Code (relating to advance pay-
ment of portion of increased child credit for 2003) 
is amended by striking ‘‘and’’ at the end of para-
graph (2), by striking the period at the end of para-
graph (3) and inserting ‘‘, and’’, and by adding at 
the end the following new paragraph: 
‘‘(4) section 24(d)(1)(B)(i) applied without re-
gard to the first parenthetical therein.’’. 
(3) EARNED INCOME INCLUDES COMBAT PAY.—
Section 24(d)(1) of such Code is amended by adding 
at the end the following new sentence: ‘‘For pur-
poses of subparagraph (B), any amount excluded 
from gross income by reason of section 112 shall be 
treated as earned income which is taken into ac-
count in computing taxable income for the taxable 
year.’’. 
(b) EFFECTIVE DATES.—
(1) SUBSECTIONS
(a)(1) 
AND
(a)(3).—The 
amendments made by subsections (a)(1) and (a)(3)
shall apply to taxable years beginning after Decem-
ber 31, 2002. 
(2) SUBSECTION
(a)(2).—The amendments 
made by subsection (a)(2) shall take effect as if in-
cluded in the amendments made by section 101(b) 
of the Jobs and Growth Tax Relief Reconciliation 
Act of 2003. 
SEC. 102. REDUCTION IN MARRIAGE PENALTY IN CHILD 
TAX CREDIT. 
(a) IN GENERAL.—Section 24(b)(2) of the Internal 
Revenue Code of 1986 (defining threshold amount) is 
amended—
(1) by inserting ‘‘($115,000 for taxable years 
beginning in 2008 or 2009, and $150,000 for tax-
able years beginning in 2010)’’ after ‘‘$110,000’’, 
and 
(2) by striking ‘‘$55,000’’ in subparagraph (C) 
and inserting ‘‘1⁄2 of the amount in effect under sub-
paragraph (A)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
SEC. 103. APPLICATION OF EGTRRA SUNSET TO THIS SEC-
TION. 
Each amendment made by this title shall be subject 
to title IX of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 to the same extent and in the same 
manner as the provision of such Act to which such amend-
ment relates. 
TITLE II—UNIFORM DEFINITION 
OF CHILD 
SEC. 201. UNIFORM DEFINITION OF CHILD, ETC. 
Section 152 of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘SEC. 152. DEPENDENT DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this subtitle, the 
term ‘dependent’ means—
‘‘(1) a qualifying child, or 
‘‘(2) a qualifying relative. 
‘‘(b) EXCEPTIONS.—For purposes of this section—
‘‘(1) DEPENDENTS
INELIGIBLE.—If an indi-
vidual is a dependent of a taxpayer for any taxable 
year of such taxpayer beginning in a calendar year, 
such individual shall be treated as having no depend-
ents for any taxable year of such individual begin-
ning in such calendar year. 
‘‘(2) MARRIED
DEPENDENTS.—An individual 
shall not be treated as a dependent of a taxpayer
under subsection (a) if such individual has made a 
joint return with the individual’s spouse under sec-
tion 6013 for the taxable year beginning in the cal-
endar year in which the taxable year of the taxpayer 
begins. 
‘‘(3) CITIZENS OR NATIONALS OF OTHER COUN-
TRIES.—
‘‘(A) IN GENERAL.—The term ‘dependent’ 
does not include an individual who is not a cit-
izen or national of the United States unless 
such individual is a resident of the United 
States or a country contiguous to the United 
States. 
‘‘(B) EXCEPTION FOR ADOPTED CHILD.—
Subparagraph (A) shall not exclude any child of 
a taxpayer (within the meaning of subsection 
(f)(1)(B)) from the definition of ‘dependent’ 
if—
‘‘(i) for the taxable year of the tax-
payer, the child’s principal place of abode 
is the home of the taxpayer, and
‘‘(ii) the taxpayer is a citizen or na-
tional of the United States. 
‘‘(c) QUALIFYING CHILD.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘qualifying child’ 
means, with respect to any taxpayer for any taxable 
year, an individual—
‘‘(A) who bears a relationship to the tax-
payer described in paragraph (2), 
‘‘(B) who has the same principal place of 
abode as the taxpayer for more than one-half of 
such taxable year, 
‘‘(C) who meets the age requirements of 
paragraph (3), and 
‘‘(D) who has not provided over one-half of 
such individual’s own support for the calendar 
year in which the taxable year of the taxpayer 
begins. 
‘‘(2) RELATIONSHIP
TEST.—For purposes of 
paragraph (1)(A), an individual bears a relationship 
to the taxpayer described in this paragraph if such 
individual is—
‘‘(A) a child of the taxpayer or a descend-
ant of such a child, or 
‘‘(B) a brother, sister, stepbrother, or step-
sister of the taxpayer or a descendant of any 
such relative. 
‘‘(3) AGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(C), an individual meets the require-
ments of this paragraph if such individual—
‘‘(i) has not attained the age of 19 as 
of the close of the calendar year in which 
the taxable year of the taxpayer begins, or 
‘‘(ii) is a student who has not attained 
the age of 24 as of the close of such cal-
endar year. 
‘‘(B) SPECIAL RULE FOR DISABLED.—In 
the case of an individual who is permanently 
and totally disabled (as defined in section 
22(e)(3)) at any time during such calendar 
year, the requirements of subparagraph (A) 
shall be treated as met with respect to such in-
dividual. 
‘‘(4) SPECIAL RULE RELATING TO 2 OR MORE 
CLAIMING QUALIFYING CHILD.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B) and subsection (e), if (but for 
this paragraph) an individual may be and is 
claimed as a qualifying child by 2 or more tax-
payers for a taxable year beginning in the same 
calendar year, such individual shall be treated 
as the qualifying child of the taxpayer who is—
‘‘(i) a parent of the individual, or 
‘‘(ii) if clause (i) does not apply, the 
taxpayer with the highest adjusted gross 
income for such taxable year. 
‘‘(B) MORE
THAN
PARENT
CLAIMING 
QUALIFYING
CHILD.—If the parents claiming 
any qualifying child do not file a joint return 
together, such child shall be treated as the 
qualifying child of—
‘‘(i) the parent with whom the child 
resided for the longest period of time dur-
ing the taxable year, or 
‘‘(ii) if the child resides with both par-
ents for the same amount of time during 
such taxable year, the parent with the 
highest adjusted gross income. 
‘‘(d) QUALIFYING RELATIVE.—For purposes of this 
section—
‘‘(1) IN GENERAL.—The term ‘qualifying rel-
ative’ means, with respect to any taxpayer for any 
taxable year, an individual—
‘‘(A) who bears a relationship to the tax-
payer described in paragraph (2), 
‘‘(B) whose gross income for the calendar 
year in which such taxable year begins is less
than the exemption amount (as defined in sec-
tion 151(d)), 
‘‘(C) with respect to whom the taxpayer 
provides over one-half of the individual’s sup-
port for the calendar year in which such taxable 
year begins, and 
‘‘(D) who is not a qualifying child of such 
taxpayer or of any other taxpayer for any tax-
able year beginning in the calendar year in 
which such taxable year begins. 
‘‘(2) RELATIONSHIP.—For purposes of para-
graph (1)(A), an individual bears a relationship to 
the taxpayer described in this paragraph if the indi-
vidual is any of the following with respect to the tax-
payer: 
‘‘(A) A child or a descendant of a child. 
‘‘(B) A brother, sister, stepbrother, or 
stepsister. 
‘‘(C) The father or mother, or an ancestor 
of either. 
‘‘(D) A stepfather or stepmother. 
‘‘(E) A son or daughter of a brother or sis-
ter of the taxpayer. 
‘‘(F) A brother or sister of the father or 
mother of the taxpayer.
‘‘(G) A son-in-law, daughter-in-law, father-
in-law, mother-in-law, brother-in-law, or sister-
in-law. 
‘‘(H) An individual (other than an indi-
vidual who at any time during the taxable year 
was the spouse, determined without regard to 
section 7703, of the taxpayer) who, for the tax-
able year of the taxpayer, has as such individ-
ual’s principal place of abode the home of the 
taxpayer and is a member of the taxpayer’s 
household. 
‘‘(3) SPECIAL RULE RELATING TO MULTIPLE 
SUPPORT AGREEMENTS.—For purposes of paragraph 
(1)(C), over one-half of the support of an individual 
for a calendar year shall be treated as received from 
the taxpayer if—
‘‘(A) no one person contributed over one-
half of such support, 
‘‘(B) over one-half of such support was re-
ceived from 2 or more persons each of whom, 
but for the fact that any such person alone did
not contribute over one-half of such support, 
would have been entitled to claim such indi-
vidual as a dependent for a taxable year begin-
ning in such calendar year,
‘‘(C) the taxpayer contributed over 10 per-
cent of such support, and 
‘‘(D) each person described in subpara-
graph (B) (other than the taxpayer) who con-
tributed over 10 percent of such support files a 
written declaration (in such manner and form 
as the Secretary may by regulations prescribe) 
that such person will not claim such individual 
as a dependent for any taxable year beginning 
in such calendar year. 
‘‘(4) SPECIAL RULE RELATING TO INCOME OF 
HANDICAPPED DEPENDENTS.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), the gross income of an individual 
who is permanently and totally disabled (as de-
fined in section 22(e)(3)) at any time during 
the taxable year shall not include income attrib-
utable to services performed by the individual 
at a sheltered workshop if—
‘‘(i) the availability of medical care at 
such workshop is the principal reason for 
the individual’s presence there, and 
‘‘(ii) the income arises solely from ac-
tivities at such workshop which are inci-
dent to such medical care.
‘‘(B) SHELTERED WORKSHOP DEFINED.—
For purposes of subparagraph (A), the term 
‘sheltered workshop’ means a school—
‘‘(i) which provides special instruction 
or training designed to alleviate the dis-
ability of the individual, and 
‘‘(ii) which is operated by an organi-
zation described in section 501(c)(3) and 
exempt from tax under section 501(a), or 
by a State, a possession of the United 
States, any political subdivision of any of 
the foregoing, the United States, or the 
District of Columbia. 
‘‘(5) SPECIAL SUPPORT TEST IN CASE OF STU-
DENTS.—For purposes of paragraph (1)(C), in the 
case of an individual who is—
‘‘(A) a child of the taxpayer, and 
‘‘(B) a student, 
amounts received as scholarships for study at an 
educational 
organization 
described 
in 
section 
170(b)(1)(A)(ii) shall not be taken into account in 
determining whether such individual received more 
than one-half of such individual’s support from the 
taxpayer.
‘‘(6) SPECIAL RULES FOR SUPPORT.—For pur-
poses of this subsection—
‘‘(A) payments to a spouse which are in-
cludible in the gross income of such spouse 
under section 71 or 682 shall not be treated as 
a payment by the payor spouse for the support 
of any dependent, 
‘‘(B) amounts expended for the support of 
a child or children shall be treated as received 
from the noncustodial parent (as defined in 
subsection (e)(3)(B)) to the extent that such 
parent provided amounts for such support, and 
‘‘(C) in the case of the remarriage of a 
parent, support of a child received from the 
parent’s spouse shall be treated as received 
from the parent. 
‘‘(e) SPECIAL RULE FOR DIVORCED PARENTS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c)(4) or (d)(1)(C), if—
‘‘(A) a child receives over one-half of the 
child’s support during the calendar year from 
the child’s parents—
‘‘(i) who are divorced or legally sepa-
rated under a decree of divorce or separate 
maintenance,
‘‘(ii) who are separated under a writ-
ten separation agreement, or 
‘‘(iii) who live apart at all times dur-
ing the last 6 months of the calendar year, 
and 
‘‘(B) such child is in the custody of 1 or 
both of the child’s parents for more than 1⁄2 of 
the calendar year, 
such child shall be treated as being the qualifying 
child or qualifying relative of the noncustodial par-
ent for a calendar year if the requirements described 
in paragraph (2) are met. 
‘‘(2) REQUIREMENTS.—For purposes of para-
graph (1), the requirements described in this para-
graph are met if—
‘‘(A) a decree of divorce or separate main-
tenance or written separation agreement be-
tween the parents applicable to the taxable year 
beginning in such calendar year provides that—
‘‘(i) the noncustodial parent shall be 
entitled to any deduction allowable under 
section 151 for such child, or 
‘‘(ii) the custodial parent will sign a 
written declaration (in such manner and 
form as the Secretary may prescribe) that
such parent will not claim such child as a 
dependent for such taxable year, and 
‘‘(B) in the case of such an agreement exe-
cuted before January 1, 1985, the noncustodial 
parent provides at least $600 for the support of 
such child during such calendar year. 
‘‘(3) CUSTODIAL PARENT AND NONCUSTODIAL 
PARENT.—For purposes of this subsection—
‘‘(A) CUSTODIAL PARENT.—The term ‘cus-
todial parent’ means the parent with whom a 
child shared the same principal place of abode 
for the greater portion of the calendar year. 
‘‘(B) NONCUSTODIAL PARENT.—The term 
‘noncustodial parent’ means the parent who is 
not the custodial parent. 
‘‘(4) 
EXCEPTION
FOR
MULTIPLE-SUPPORT 
AGREEMENTS.—This subsection shall not apply in 
any case where over one-half of the support of the
child is treated as having been received from a tax-
payer under the provision of subsection (d)(3). 
‘‘(f) OTHER DEFINITIONS AND RULES.—For pur-
poses of this section—
‘‘(1) CHILD DEFINED.—
‘‘(A) IN
GENERAL.—The term ‘child’ 
means an individual who is—
‘‘(i) a son, daughter, stepson, or step-
daughter of the taxpayer, or 
‘‘(ii) an eligible foster child of the tax-
payer. 
‘‘(B) ADOPTED
CHILD.—In determining 
whether any of the relationships specified in 
subparagraph (A)(i) or paragraph (4) exists, a 
legally adopted individual of the taxpayer, or an 
individual who is placed with the taxpayer by 
an authorized placement agency for adoption by 
the taxpayer, shall be treated as a child of such 
individual by blood. 
‘‘(C) ELIGIBLE FOSTER CHILD.—For pur-
poses of subparagraph (A)(ii), the term ‘eligible 
foster child’ means an individual who is placed 
with the taxpayer by an authorized placement 
agency or by judgment, decree, or other order 
of any court of competent jurisdiction. 
‘‘(2) STUDENT DEFINED.—The term ‘student’ 
means an individual who during each of 5 calendar 
months during the calendar year in which the tax-
able year of the taxpayer begins—
‘‘(A) is a full-time student at an edu-
cational 
organization 
described 
in 
section 
170(b)(1)(A)(ii), or
‘‘(B) is pursuing a full-time course of insti-
tutional on-farm training under the supervision 
of an accredited agent of an educational organi-
zation described in section 170(b)(1)(A)(ii) or 
of a State or political subdivision of a State. 
‘‘(3) PLACE
OF
ABODE.—An individual shall 
not be treated as having the same principal place of 
abode of the taxpayer if at any time during the tax-
able year of the taxpayer the relationship between 
the individual and the taxpayer is in violation of 
local law. 
‘‘(4) 
BROTHER
AND
SISTER.—The 
terms 
‘brother’ and ‘sister’ include a brother or sister by 
the half blood. 
‘‘(5) TREATMENT OF MISSING CHILDREN.—
‘‘(A) IN
GENERAL.—Solely for the pur-
poses referred to in subparagraph (B), a child 
of the taxpayer—
‘‘(i) who is presumed by law enforce-
ment authorities to have been kidnapped 
by someone who is not a member of the 
family of such child or the taxpayer, and 
‘‘(ii) who had, for the taxable year in 
which the kidnapping occurred, the same 
principal place of abode as the taxpayer for
more than one-half of the portion of such 
year before the date of the kidnapping, 
shall be treated as meeting the requirement of 
subsection (c)(1)(B) with respect to a taxpayer 
for all taxable years ending during the period 
that the individual is kidnapped. 
‘‘(B) PURPOSES.—Subparagraph (A) shall 
apply solely for purposes of determining—
‘‘(i) the deduction under section 
151(c), 
‘‘(ii) the credit under section 24 (re-
lating to child tax credit), 
‘‘(iii) whether an individual is a sur-
viving spouse or a head of a household (as 
such terms are defined in section 2), and 
‘‘(iv) the earned income credit under 
section 32. 
‘‘(C) COMPARABLE TREATMENT OF CER-
TAIN
QUALIFYING
RELATIVES.—For purposes 
of this section, a child of the taxpayer—
‘‘(i) who is presumed by law enforce-
ment authorities to have been kidnapped 
by someone who is not a member of the 
family of such child or the taxpayer, and
‘‘(ii) who was (without regard to this 
paragraph) a qualifying relative of the tax-
payer for the portion of the taxable year 
before the date of the kidnapping, 
shall be treated as a qualifying relative of the 
taxpayer for all taxable years ending during the 
period that the child is kidnapped. 
‘‘(D) TERMINATION
OF
TREATMENT.—
Subparagraphs (A) and (C) shall cease to apply 
as of the first taxable year of the taxpayer be-
ginning after the calendar year in which there 
is a determination that the child is dead (or, if 
earlier, in which the child would have attained 
age 18). 
‘‘(6) CROSS REFERENCES.—
‘‘For provision treating child as dependent of both 
parents for purposes of certain provisions, see sec-
tions 105(b), 132(h)(2)(B), and 213(d)(5).’’.
SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF 
HOUSEHOLD. 
(a) HEAD OF HOUSEHOLD.—Clause (i) of section 
2(b)(1)(A) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(i) a qualifying child of the indi-
vidual (as defined in section 152(c), deter-
mined without regard to section 152(e)), 
but not if such child—
‘‘(I) is married at the close of the 
taxpayer’s taxable year, and 
‘‘(II) is not a dependent of such 
individual 
by 
reason 
of 
section 
152(b)(2) or 152(b)3), or both, or’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 2(b)(2) of the Internal Revenue 
Code of 1986 is amended by striking subparagraph 
(A) and by redesignating subparagraphs (B), (C), 
and (D) as subparagraphs (A), (B), and (C), respec-
tively. 
(2) Clauses (i) and (ii) of section 2(b)(3)(B) of 
such Code are amended to read as follows:
‘‘(i) subparagraph (H) of section 
152(d)(2), or 
‘‘(ii) 
paragraph 
(3) 
of 
section 
152(d).’’. 
SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT. 
(a) IN GENERAL.—Section 21(a)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘In the case 
of an individual who maintains a household which includes 
as a member one or more qualifying individuals (as de-
fined in subsection (b)(1))’’ and inserting ‘‘In the case of 
an individual for which there are 1 or more qualifying indi-
viduals (as defined in subsection (b)(1)) with respect to 
such individual’’. 
(b) QUALIFYING INDIVIDUAL.—Paragraph (1) of sec-
tion 21(b) of the Internal Revenue Code of 1986 is amend-
ed to read as follows: 
‘‘(1) 
QUALIFYING
INDIVIDUAL.—The 
term 
‘qualifying individual’ means—
‘‘(A) a dependent of the taxpayer (as de-
fined in section 152(a)(1)) who has not attained 
age 13, 
‘‘(B) a dependent of the taxpayer who is 
physically or mentally incapable of caring for 
himself or herself and who has the same prin-
cipal place of abode as the taxpayer for more 
than one-half of such taxable year, or 
‘‘(C) the spouse of the taxpayer, if the 
spouse is physically or mentally incapable of 
caring for himself or herself and who has the 
same principal place of abode as the taxpayer 
for more than one-half of such taxable year.’’. 
(c) CONFORMING AMENDMENT.—Paragraph (1) of 
section 21(e) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) PLACE
OF
ABODE.—An individual shall 
not be treated as having the same principal place of
abode of the taxpayer if at any time during the tax-
able year of the taxpayer the relationship between 
the individual and the taxpayer is in violation of 
local law.’’. 
SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT. 
(a) IN GENERAL.—Paragraph (1) of section 24(c) of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) IN GENERAL.—The term ‘qualifying child’ 
means a qualifying child of the taxpayer (as defined 
in section 152(c)) who has not attained age 17.’’. 
(b) CONFORMING AMENDMENT.—Section 24(c)(2) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘the first sentence of section 152(b)(3)’’ and inserting 
‘‘subparagraph (A) of section 152(b)(3)’’. 
SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT. 
(a) QUALIFYING CHILD.—Paragraph (3) of section 
32(c) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(3) QUALIFYING CHILD.—
‘‘(A) IN GENERAL.—The term ‘qualifying 
child’ means a qualifying child of the taxpayer 
(as defined in section 152(c), determined with-
out regard to paragraph (1)(D) thereof and sec-
tion 152(e)).