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Expanding EITC Tax Credit and Support for Tax Preparation

This act expands the Earned Income Tax Credit (EITC) to include more individuals, such as students and those with new types of dependents. It also introduces the option for monthly EITC payments and establishes programs to assist low-income taxpayers with tax preparation, aiming to enhance financial stability and reduce income inequality.
Key points
More people can benefit from EITC: now includes students and individuals with new types of dependents, like elderly family members.
Option to receive EITC as monthly payments instead of a single refund, potentially improving financial liquidity.
Establishes a grant program for organizations providing free tax preparation assistance to low-income taxpayers.
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Additional Information
EITC Modernization Act
Print number: HR 174
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2021-01-04