Tax Cuts for Workers: Expanded Credits and Lower Age Limits
This act aims to increase tax benefits for working individuals, especially those without children. It lowers the minimum age for eligibility and removes the upper age limit, meaning more people can qualify for larger tax refunds. Additionally, it introduces an option to use prior year income, which can help secure a higher credit if current earnings decrease.
Key points
Lowering the minimum age for the earned income credit for individuals without qualifying children to 19 (or 18 for qualified former foster or homeless youth).
Eliminating the maximum age limit (65) for the credit, allowing older individuals to also benefit.
Increasing the credit and phaseout percentages and amounts, leading to larger tax refunds for eligible individuals.
Allowing taxpayers to elect to use their prior year's earned income if it was higher, potentially increasing their credit.
Extending the application of the earned income credit to U.S. possessions like Puerto Rico.
Introduced
Additional Information
Print number: 119_HR_2764
Sponsor: Rep. Evans, Dwight [D-PA-3]
Process start date: 2025-04-09