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New Earned Income Credit rules: more flexibility for taxpayers.

This act introduces an important change for individuals claiming the Earned Income Tax Credit (EITC). If your current year's income is lower than the previous year's, you can choose to have your credit calculated based on the prior year's income. This provides greater financial stability, especially during periods of reduced earnings.
Key points
Allows taxpayers to use prior year's earned income to calculate EITC if current year's income is lower.
Provides greater financial protection for individuals experiencing a drop in earnings, helping maintain credit amount.
Changes apply to tax years beginning after December 31, 2024.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2898
Sponsor: Rep. Sykes, Emilia Strong [D-OH-13]
Process start date: 2025-04-10
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

EITC Lookback Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2898.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-04-10.

What are the main provisions?

Key points include:

  • Allows taxpayers to use prior year's earned income to calculate EITC if current year's income is lower.
  • Provides greater financial protection for individuals experiencing a drop in earnings, helping maintain credit amount.
  • Changes apply to tax years beginning after December 31, 2024.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sykes, Emilia Strong [D-OH-13].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Benefits