According to the publication, the credit was initially enacted as section 44A of the Internal Revenue Code in 1979. The proposed regulations incorporate many of the rules of 44A, but are renumbered, restructured, and revised to improve clarity.
The proposed regulations include a change in the definition of a qualifying individual and a reduction in the maximum age of a qualifying child from under 15 to under 13, according to the publication. They also provide for an increase in the maximum amount of creditable expenses and the monthly amount of deemed earned income of a spouse who is a full-time student or incapable of self-care for taxable years beginning after December 31, 2002, and before January 1, 2011.
Administrative issues that have arisen over the years are addressed by the proposed regulations, and more examples are provided.
The IRS is inviting written or electronic comments on the proposal by August 22. The publication, which includes addresses for submitting comments is here .
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