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EITC Expansion: More Support for Families and Students

This bill aims to increase financial support for low- and middle-income working individuals. It expands the Earned Income Tax Credit (EITC) to include more individuals with dependents, aged dependents, and qualifying students, and introduces an option for monthly payments of the credit. Additionally, the act establishes programs to assist low-income taxpayers with tax preparation.
Key points
More individuals with dependents, including aged dependents, will be eligible for the EITC.
Qualifying students will also be eligible for the EITC, with a minimum credit of $1,200.
Option to receive EITC refunds in monthly installments instead of a single lump sum.
Support for new low-income parents by adjusting EITC payments after the birth or adoption of a child.
Creation of programs to help low-income and underserved populations prepare their tax returns.
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Additional Information
EITC Modernization Act
Print number: HR 5421
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2023-09-12