Student and Family Tax Simplification Act
3/14/2024, 12:48 PMCongressional Summary of HR 3393
Title I: Student and Family Tax Simplification Act - Student and Family Tax Simplification Act - (Sec. 102) Amends the Internal Revenue Code to provide for an American Opportunity Tax Credit, in lieu of the current Hope Scholarship and Lifetime Learning tax credits and the tax deduction for qualified tuition and related expenses, that provides for each eligible student (i.e., a student who meets certain requirements of the Higher Education Act of 1965 and who is carrying at least 1/2 the normal full-time course load) a credit of 100% of up to $2,000 of qualified tuition and related expenses (i.e., tuition, fees, and course materials, excluding expenses for courses involving sports, games, or hobbies or for expenses unrelated to academic instruction), plus 25% of so much of such expenses as exceeds $2,000, but not more than $4,000. Makes up to $1,500 of such credit refundable. Modifies the phaseout of such credit based on taxpayer modified adjusted gross income by increasing the income level for such phaseout. Allows an inflation adjustment to credit and phaseout amounts for taxable years beginning after 2018.
Eliminates the disallowance of the credit for students who have been convicted of a felony drug offense.
Requires a taxpayer claiming such credit to include on the his or her tax return the employer identification number of the educational institution to which qualified tuition and related expenses were paid.
(Sec. 103) Excludes from gross income, for income tax purposes, amounts received as a Federal Pell Grant in taxable years beginning after 2014.
(Sec. 104) Prohibits the entry of the budgetary effects of this Act on any PAYGO (pay-as-you-go) scorecard.
Title II: Child Tax Credit Improvement Act - Child Tax Credit Improvement Act of 2014 - (Sec. 202) Amends the Internal Revenue Code, with respect to the child tax credit, to: (1) increase from $110,00 to $150,000 ($75,000 for individual taxpayers and married taxpayers filing separately) the threshold amount applicable to married couples filing joint tax returns above which such tax credit is reduced, and (2) allow an inflation adjustment to the threshold amounts and the $1,000 credit amount beginning after 2014.
(Sec. 203) Requires taxpayers to include their social security numbers on their tax returns to claim the refundable portion of the child tax credit.
(Sec. 204) Prohibits the entry of the budgetary effects of this Act on any PAYGO (pay-as-you-go) scorecard.
