113TH CONGRESS 
2D SESSION 
H. R. 3393 
AN ACT 
To amend the Internal Revenue Code of 1986 to consolidate 
certain tax benefits for educational expenses, to amend 
the Internal Revenue Code of 1986 to make improve-
ments to 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. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of Contents. 
TITLE I—STUDENT AND FAMILY TAX SIMPLIFICATION ACT 
Sec. 101. Short title. 
Sec. 102. Consolidation of certain tax benefits for educational expenses. 
Sec. 103. Expansion of Pell Grant exclusion from gross income. 
Sec. 104. Budgetary effects. 
TITLE II—CHILD TAX CREDIT IMPROVEMENT ACT 
Sec. 201. Short title. 
Sec. 202. Elimination of marriage penalty in child tax credit; inflation adjust-
ment of credit amount and phaseout thresholds in child tax 
credit. 
Sec. 203. Social security number required to claim the refundable portion of the 
child tax credit. 
Sec. 204. Budgetary effects. 
TITLE I—STUDENT AND FAMILY 
TAX SIMPLIFICATION ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Student and Family 
Tax Simplification Act’’. 
SEC. 102. CONSOLIDATION OF CERTAIN TAX BENEFITS FOR 
EDUCATIONAL EXPENSES. 
(a) AMERICAN OPPORTUNITY TAX CREDIT.—Section 
25A of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘SEC. 25A. AMERICAN OPPORTUNITY TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year, with respect to each 
eligible student, an amount equal to the sum of—
‘‘(1) 100 percent of so much of the qualified 
tuition and related expenses paid by the taxpayer 
during the taxable year (for education furnished to 
the eligible student during any academic period be-
ginning in such taxable year) as does not exceed 
$2,000, plus 
‘‘(2) 25 percent of so much of such expenses so 
paid as exceeds the dollar amount in effect under 
paragraph (1) but does not exceed twice such dollar 
amount. 
‘‘(b) PORTION OF CREDIT REFUNDABLE.—So much 
of the credit allowable under subsection (a) with respect 
to each eligible student (determined without regard to this 
subsection and section 26(a) and after application of all 
other provisions of this section) as does not exceed $1,500 
shall be treated as a credit allowable under subpart C (and 
not under this part). The preceding sentence shall not 
apply to any taxpayer for any taxable year if such tax-
payer is a child to whom section 1(g) applies for such tax-
able year. 
‘‘(c) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) for any taxable year shall 
be reduced (but not below zero) by an amount which
bears the same ratio to the amount so allowable (de-
termined without regard to this subsection and sub-
section (b) but after application of all other provi-
sions of this section) as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $80,000 (twice such amount in 
the case of a joint return), bears to 
‘‘(B) $10,000 (twice such amount in the 
case of a joint return). 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means the adjusted gross in-
come of the taxpayer for the taxable year increased 
by any amount excluded from gross income under 
section 911, 931, or 933. 
‘‘(d) OTHER LIMITATIONS.—No credit shall be al-
lowed under this section with respect to any eligible stu-
dent for any taxable year if— 
‘‘(1) such student was taken into account in de-
termining the credit allowed under this section (by 
the taxpayer or any other individual) for any 4 prior 
taxable years, or
‘‘(2) such student has completed (before the be-
ginning of such taxable year) the first 4 years of 
postsecondary education at an eligible educational 
institution. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means, with respect to any academic period, 
a student who— 
‘‘(A) meets the requirements of section 
484(a)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1091(a)(1)), as in effect on August 
5, 1997, and 
‘‘(B) is carrying at least 1⁄2 the normal 
full-time work load for the course of study the 
student is pursuing. 
‘‘(2) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
tuition and related expenses’ means tuition, 
fees, and course materials, required for enroll-
ment or attendance of— 
‘‘(i) the taxpayer, 
‘‘(ii) the taxpayer’s spouse, or
‘‘(f) SPECIAL RULES.— 
‘‘(1) 
IDENTIFICATION
REQUIREMENT.—No 
credit shall be allowed under subsection (a) to a tax-
payer with respect to the qualified tuition and re-
lated expenses of an individual unless the taxpayer 
includes the name and taxpayer identification num-
ber of such individual, and the employer identifica-
tion number of any institution to which such ex-
penses were paid, on the return of tax for the tax-
able year. 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS, ETC.— 
‘‘(A) IN GENERAL.—The amount of quali-
fied tuition and related expenses otherwise 
taken into account under subsection (a) with re-
spect to an individual for an academic period 
shall be reduced (before the application of sub-
section (c)) by the sum of any amounts paid for 
the benefit of such individual which are allo-
cable to such period as— 
‘‘(i) a qualified scholarship which is 
excludable from gross income under section 
117, 
‘‘(ii) an educational assistance allow-
ance under chapter 30, 31, 32, 34, or 35
of title 38, United States Code, or under 
chapter 1606 of title 10, United States 
Code, and 
‘‘(iii) a payment (other than a gift, 
bequest, devise, or inheritance within the 
meaning of section 102(a)) for such indi-
vidual’s educational expenses, or attrib-
utable to such individual’s enrollment at an 
eligible educational institution, which is ex-
cludable from gross income under any law 
of the United States. 
‘‘(B) COORDINATION WITH PELL GRANTS 
NOT USED FOR QUALIFIED TUITION AND RE-
LATED EXPENSES.—For purposes of subpara-
graph (A), the amount of any Federal Pell 
Grant under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) shall be 
reduced (but not below zero) by the amount of 
expenses (other than qualified tuition and re-
lated expenses) which are taken into account in 
determining the cost of attendance (as defined 
in section 472 of the Higher Education Act of 
1965, as in effect on the date of the enactment 
of this paragraph) of such individual at an eligi-
ble educational institution for the academic pe-
riod for which the credit under this section is 
being determined. 
‘‘(3) TREATMENT OF EXPENSES PAID BY DE-
PENDENT.—If a deduction under section 151 with 
respect to an individual is allowed to another tax-
payer for a taxable year beginning in the calendar 
year in which such individual’s taxable year begins— 
‘‘(A) no credit shall be allowed under sub-
section (a) to such individual for such individ-
ual’s taxable year, and 
‘‘(B) qualified tuition and related expenses 
paid by such individual during such individual’s 
taxable year shall be treated for purposes of 
this section as paid by such other taxpayer. 
‘‘(4) 
TREATMENT
OF
CERTAIN
PREPAY-
MENTS.—If qualified tuition and related expenses 
are paid by the taxpayer during a taxable year for 
an academic period which begins during the first 3 
months following such taxable year, such academic 
period shall be treated for purposes of this section 
as beginning during such taxable year. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section for any amount 
for which a deduction is allowed under any other 
provision of this chapter.
‘‘(6) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATE RETURNS.—If the taxpayer is a 
married individual (within the meaning of section 
7703), this section shall apply only if the taxpayer 
and the taxpayer’s spouse file a joint return for the 
taxable year. 
‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 
a nonresident alien individual for any portion of the 
taxable year, this section shall apply only if such in-
dividual is treated as a resident alien of the United 
States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(g) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2018, the $2,000 amount in 
subsection (a)(1), the $1,500 amount in subsection 
(b), and the $80,000 amount in subsection 
(c)(1)(A)(ii) shall each be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2017’ for
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under paragraph (1) is not a multiple of $100 
($1,000 in the case of the amount in subsection 
(c)(1)(A)(ii)), such amount shall be rounded to the 
next lowest multiple of $100 ($1,000 in the case of 
the amount in subsection (c)(1)(A)(ii)). 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out this section, including regula-
tions providing for a recapture of the credit allowed under 
this section in cases where there is a refund in a subse-
quent taxable year of any amount which was taken into 
account in determining the amount of such credit.’’. 
(b) REQUIREMENT TO REPORT TUITION PAID RATH-
ER THAN TUITION BILLED.—Section 6050S(b)(2)(B)(i) 
is amended by striking ‘‘or the aggregate amount billed’’. 
(c) REPEAL OF DEDUCTION FOR QUALIFIED TUI-
TION AND RELATED EXPENSES.—Part VII of subchapter 
B of chapter 1 of such Code is amended by striking section 
222 (and by striking the item relating to such section in 
the table of sections for such part). 
(d) CONFORMING AMENDMENTS.—
(1) Section 62(a) of such Code is amended by 
striking paragraph (18). 
(2) Section 72(t)(7)(B) of such Code is amend-
ed by striking ‘‘section 25A(g)(2)’’ and inserting 
‘‘section 25A(f)(2)’’. 
(3) 
Sections 
86(b)(2)(A), 
135(c)(4)(A), 
137(b)(3)(A), 199(d)(2)(A), 219(g)(3)(A)(ii), and 
221(b)(2)(C)(i) of such Code are each amended by 
striking ‘‘222,’’. 
(4) Section 469(i)(3)(F)(iii) of such Code is 
amended by striking ‘‘221, and 222’’ and inserting 
‘‘and 221’’. 
(5) Section 529(c)(3)(B)(v)(I) of such Code is 
amended by striking ‘‘section 25A(g)(2)’’ and insert-
ing ‘‘section 25A(f)(2)’’. 
(6) Section 529(e)(3)(B)(i) of such Code is 
amended by striking ‘‘section 25A(b)(3)’’ and insert-
ing ‘‘section 25A(d)’’. 
(7) Section 530(d)(2)(C) of such Code is 
amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in 
clause (i)(I) and inserting ‘‘section 25A(f)(2)’’, 
and
(B) by striking ‘‘HOPE
AND
LIFETIME 
LEARNING CREDITS’’ in the heading and insert-
ing ‘‘AMERICAN OPPORTUNITY TAX CREDIT’’. 
(8) Section 530(d)(4)(B)(iii) of such Code is 
amended by striking ‘‘section 25A(g)(2)’’ and insert-
ing ‘‘section 25A(d)(4)(B)’’. 
(9) Section 6050S(e) of such Code is amended 
by striking ‘‘subsection (g)(2)’’ and inserting ‘‘sub-
section (f)(2)’’. 
(10) Section 6211(b)(4)(A) of such Code is 
amended by striking ‘‘subsection (i)(6)’’ and insert-
ing ‘‘subsection (b)’’. 
(11) Section 6213(g)(2)(J) of such Code is 
amended by striking ‘‘TIN required under section 
25A(g)(1)’’ and inserting ‘‘TIN, and employer iden-
tification 
number, 
required 
under 
section 
25A(f)(1)’’. 
(12) Section 1004(c) of division B of the Amer-
ican Recovery and Reinvestment Tax Act of 2009 is 
amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘section 25A(i)(6)’’ 
each place it appears and inserting ‘‘sec-
tion 25A(b)’’,
(ii) by striking ‘‘with respect to tax-
able years beginning after 2008 and before 
2018’’ in subparagraph (A) and inserting 
‘‘with respect to each taxable year’’, and 
(iii) by striking ‘‘for taxable years be-
ginning after 2008 and before 2018’’ in 
subparagraph (B) and inserting ‘‘for each 
taxable year’’, 
(B) in paragraph (2), by striking ‘‘Section 
25A(i)(6)’’ and inserting ‘‘Section 25A(b)’’, and 
(C) in paragraph (3)(C), by striking ‘‘sub-
section (i)(6)’’ and inserting ‘‘subsection (b)’’. 
(13) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the item 
relating to section 25A and inserting the following 
new item: 
‘‘Sec. 25A. American opportunity tax credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 103. EXPANSION OF PELL GRANT EXCLUSION FROM 
GROSS INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 117(b) 
of the Internal Revenue Code of 1986 is amended—
(1) by striking the period at the end and insert-
ing ‘‘, or’’, 
(2) by striking ‘‘received by an individual as a 
scholarship’’ and inserting the following: ‘‘received 
by an individual— 
‘‘(A) as a scholarship’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) as a Federal Pell Grant under section 
401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 104. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 
budgetary effects of this Act shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—The budgetary 
effects of this Act shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress).
TITLE II—CHILD TAX CREDIT 
IMPROVEMENT ACT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Child Tax Credit Im-
provement Act of 2014’’. 
SEC. 202. ELIMINATION OF MARRIAGE PENALTY IN CHILD 
TAX CREDIT; INFLATION ADJUSTMENT OF 
CREDIT AMOUNT AND PHASEOUT THRESH-
OLDS IN CHILD TAX CREDIT. 
(a) ELIMINATION OF MARRIAGE PENALTY.—Section 
24(b)(2) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘means—’’ and all that follows and inserting 
‘‘means $75,000 (twice such amount in the case of a joint 
return).’’. 
(b) INFLATION ADJUSTMENT OF CREDIT AMOUNT 
AND PHASEOUT THRESHOLDS.—Section 24 of such Code 
is amended by adding at the end the following new sub-
section: 
‘‘(g) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2014, the $1,000 amount in 
subsection (a) and the $75,000 amount in sub-
section (b)(2) shall each be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2013’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—Any increase determined 
under paragraph (1) shall be rounded— 
‘‘(A) in the case of the $1,000 amount in 
subsection (a), to the nearest multiple of $50, 
and 
‘‘(B) in the case of the $75,000 amount in 
subsection (b)(2), to the nearest multiple of 
$1,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 203. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM 
THE REFUNDABLE PORTION OF THE CHILD 
TAX CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 24 of the 
Internal Revenue Code of 1986 is amended by inserting 
after paragraph (4) the following new paragraph: 
‘‘(5) IDENTIFICATION REQUIREMENT WITH RE-
SPECT TO TAXPAYER.—