taxpayer's earned income (within the meaning of section 32) which is taken into account in computing taxable income for the taxable year as exceeds $3,000, or . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 4. Indexing the child tax credit for inflation (a) Inflation adjustments Section 24 of the Internal Revenue Code of 1986, as amended by section 3, is amended by adding at the end the following new subsection: (h) Inflation adjustments (1) In general In the case of any taxable year beginning in a calendar year after 2017, each of the dollar amounts in subsections (a) and (b)(2) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2016 for calendar year 1992 in subparagraph (B) thereof. (2) Rounding Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 5. Simplifying the earned income tax credit (a) Modification of abandoned spouse rule (1) In general Section 32(c)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (G) Certain married individuals living apart For purposes of this section, an individual who— (i) is married (within the meaning of section 7703(a)) and files a separate return for the taxable year, (ii) lives with a qualifying child of the individual for more than one-half of such taxable year, and (iii) (I) during the last 6 months of such taxable year, does not have the same principal place of abode as the individual's spouse, or (II) has a legally binding separation agreement with the individual’s spouse and is not a member of the same household with the individual’s spouse by the end of the taxable year, shall not be