amount. (B) Definitions For purposes of this paragraph— (i) Modified adjusted gross income The term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (ii) Household member The term household member of the taxpayer means the taxpayer, the taxpayer's spouse, and any dependent of the taxpayer. (iii) Threshold amount The term threshold amount means— (I) $130,000 in the case of a joint return, (II) $80,000 in the case of an individual who is not married, and (III) $65,000 in the case of a married individual filing a separate return. (C) Regulations The Secretary shall prescribe such regulations, and other guidance, as may be necessary to carry out the purposes of this paragraph, including establishment of rules for eligible individuals who have not filed a recent tax return. (5) Fee treatment of payments Amounts paid under this subsection shall be includible in gross income. (6) Federal programs and Federal assisted programs The carbon dividend amount received by any eligible individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (7) Advance payment The Secretary shall transfer to the Climate Action Rebate Fund such amounts as are necessary for the disbursement of an advanced carbon dividend to all eligible individuals as follows: (A) An advanced carbon dividend shall be the same as the anticipated first carbon dividend required to be distributed under paragraph (1) and shall be distributed the month prior to the first collection of the carbon fee. (B) Total amounts disbursed as advanced carbon dividends shall be deducted from the carbon dividends on a pro-rata basis over the first 3 years after the