SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Immediate Financial Assistance for 
America's Seniors Act of 2008''.

SEC. 2. 2008 RECOVERY REBATES FOR CERTAIN INDIVIDUALS RECEIVING SOCIAL 
              SECURITY BENEFITS.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6431. 2008 RECOVERY REBATES FOR CERTAIN INDIVIDUALS RECEIVING 
              SOCIAL SECURITY BENEFITS.

    ``(a) In General.--In the case of an eligible individual who is an 
eligible social security recipient, there shall be allowed as a credit 
against the tax imposed by subtitle A for the first taxable year 
beginning in 2008 an amount equal $300 ($600 in the case of a joint 
return).
    ``(b) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(c) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection (a) (determined without regard to this 
subsection and subsection (f)) shall be reduced (but not below zero) by 
5 percent of so much of the taxpayer's adjusted gross income as exceeds 
$75,000 ($150,000 in the case of a joint return).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible social security recipient.--The term 
        `eligible social security recipient' means, with respect to any 
        taxable year, any taxpayer who--
                    ``(A) received a social security benefit (as 
                defined in section 86(d)) during such taxable year, and
                    ``(B) has earned income which is less than $3,000.
            ``(2) Eligible individual.--The term `eligible individual' 
        means any individual other than--
                    ``(A) any nonresident alien individual,
                    ``(B) any individual with respect to whom a 
                deduction under section 151 is allowable to another 
                taxpayer for a taxable year beginning in the calendar 
                year in which the individual's taxable year begins, and
                    ``(C) an estate or trust.
            ``(3) Earned income.--The term `earned income' has the 
        meaning set forth in section 32(c)(2) except that--
                    ``(A) subclause (II) of subparagraph (B)(vi) 
                thereof shall be applied by substituting `January 1, 
                2009' for `January 1, 2008', and
                    ``(B) such term shall not include net earnings from 
                self-employment which are not taken into account in 
                computing taxable income.
    ``(e) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (f). 
        Any failure to so reduce the credit shall be treated as arising 
        out of a mathematical or clerical error and assessed according 
        to section 6213(b)(1).
            ``(2) Joint returns.--In the case of a refund or credit 
        made or allowed under subsection (f) with respect to a joint 
        return, half of such refund or credit shall be treated as 
        having been made or allowed to each individual filing such 
        return.
    ``(f) Advance Refunds and Credits.--
            ``(1) In general.--Each individual who was an eligible 
        individual for such individual's first taxable year beginning 
        in 2007 shall be treated as having made a payment against the 
        tax imposed by chapter 1 for such first taxable year in an 
        amount equal to the advance refund amount for such taxable 
        year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such first 
        taxable year if this section (other than subsection (e) and 
        this subsection) had applied to such taxable year.
            ``(3) Timing of payments.--The Secretary shall, subject to 
        the provisions of this title, refund or credit any overpayment 
        attributable to this section as rapidly as possible. No refund 
        or credit shall be made or allowed under this subsection after 
        December 31, 2008.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.''.
    (b) Treatment of Possessions.--
            (1) Mirror code possession.--The Secretary of the Treasury 
        shall make a payment to each possession of the United States 
        with a mirror code tax system in an amount equal to the loss to 
        that possession by reason of the amendments made by this 
        section. Such amount shall be determined by the Secretary of 
        the Treasury based on information provided by the government of 
        the respective possession.
            (2) Other possessions.--The Secretary of the Treasury shall 
        make a payment to each possession of the United States which 
        does not have a mirror code tax system in an amount estimated 
        by the Secretary of the Treasury as being equal to the 
        aggregate benefits that would have been provided to residents 
        of such possession by reason of the amendments made by this 
        section if a mirror code tax system had been in effect in such 
        possession. The preceding sentence shall not apply with respect 
        to any possession of the United States unless such possession 
        has a plan, which has been approved by the Secretary of the 
        Treasury, under which such possession will promptly distribute 
        such payment to the residents of such possession.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 6431 of the Internal Revenue Code of 1986 
                (as added by this section).
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 6431'' after 
        ``section 35''.
            (2) The table of contents for subchapter B of chapter 65 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new item:

``Sec. 6431. 2008 recovery rebates for certain individuals receiving 
                            social security benefits.''.
Output: Immediate Financial Assistance for America's Seniors Act of 2008 - Amends the Internal Revenue Code to allow social security recipients with earned income less than $3,000 a $300 refundable tax credit ($600 for married couples filing a joint tax return) in 2008. Reduces the amount of such credit by 5% of the amount by which the taxpayer's adjusted gross income exceeds $75,000.