of such Code, as amended by subsection (a), is further amended by adding at the end the following new subparagraph: (G) Qualifying student The term qualifying student means, with respect to month in a taxable year, an individual who is an eligible student (as defined in section 25A(b)(3)) with respect to an institution of higher education (as defined in section 101 of the Higher Education Act of 1965) who— (i) is eligible for a Federal Pell Grant with respect to the academic year beginning in such taxable year, and (ii) is not a dependent for whom a deduction is allowable under section 151 to another taxpayer for the taxable year. . (c) Minimum credit amount for individuals with qualifying dependents and for qualifying students Section 32(a)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Credit amount (A) In general In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer’s earned income for the taxable year as does not exceed the earned income amount. (B) Minimum credit amount for individuals with dependents and for qualifying students In the case of an eligible individual described in clause (i) or (iii) of subsection (c)(1)(A), the following provisions shall be applied by inserting the greater of $1,200 or before the credit percentage : (i) Credit amount Subparagraph (A). (ii) Phaseout Paragraph (2)(A). . (d) Monthly payment Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (n) Monthly payment (1) In general In the case of an individual entitled under this section to a refund that exceeds $240, such individual may elect to have the Secretary, in lieu of such refund, make a payment equal to— (A) 2/13 of such refund (with interest) during the earlier of the first practicable month or the second month that begins after the date the return was filed, and (B) 1/13 of such refund