EITC Expansion: Tax Credit for Students, Dependents, and Monthly Refund Payments.
This Act expands the federal Earned Income Tax Credit (EITC) to include more individuals, specifically qualifying students and all taxpayers with dependents, not just qualifying children. It establishes a minimum credit of $1,200 for students and certain dependents and introduces an option for taxpayers to receive their EITC refund in monthly installments rather than a single annual lump sum. Furthermore, the legislation lowers the eligibility age for childless workers and creates a matching grant program for volunteer income tax assistance.
Key points
EITC eligibility expanded: The credit is extended to all taxpayers with qualifying dependents (including aged dependents) and to qualifying low-income students.
Minimum credit of $1,200: Students and individuals with specified dependents (other than children aged 7 or older) are guaranteed a minimum EITC amount of $1,200.
Monthly refund option: Taxpayers can elect to receive their EITC refund in 12 monthly payments, providing a steadier income flow throughout the year.
Lowered age for individuals without dependents: The minimum age to claim the EITC for taxpayers without qualifying dependents is reduced from 25 to 18.
Free tax preparation assistance: A new grant program is established to fund volunteer programs that help low-income taxpayers accurately prepare and file their returns.
Introduced
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