Major Expansion of Earned Income Tax Credit and Monthly Advance Payments.
This Act significantly expands the Earned Income Tax Credit (EITC), making it available to low-income students, young adults starting at age 18, and individuals caring for dependents. A major change is the introduction of an option for taxpayers to receive up to 75% of their estimated EITC as direct monthly advance payments, providing regular financial relief throughout the year. The bill also increases the income thresholds for receiving the credit, offering greater financial support to millions of low-to-moderate income workers and families.
Key points
Taxpayers can elect to receive up to 75% of their estimated EITC as direct monthly advance payments, providing consistent financial support instead of a lump sum annual refund.
EITC eligibility is expanded to include low-income students and the minimum age for childless workers is lowered from 25 to 18.
Caregiving and learning activities are treated as 'earned income,' allowing non-working caregivers and students to qualify for the credit.
Increased income limits (phaseout amounts) for the credit, extending benefits further up the income scale (e.g., up to $50,000 for joint filers).
Introduced
Citizen Poll