“To amend the Internal Revenue Code of 1986 to expand and improve the earned income tax credit.”
No CRS summary available for this bill.
This section expands eligibility for the earned income tax credit (EITC)—a refundable tax credit for low- and moderate-income workers—by (1) including qualifying students (i.e., eligible students under section 25A who qualify for a Federal Pell Grant or have household income below 300% of the poverty line, and who are not dependents), (2) lowering the minimum age for individuals without a qualifying dependent to 18 (from 25) and eliminating the maximum age limit (previously under 65), (3) deeming an earned income amount for qualifying students and taxpayers with a qualifying dependent to satisfy the EITC's earned income requirement (thus allowing credits for caregivers and students without wages), and (4) broadening qualifying dependents to include qualifying children under age 13 (from 19), spouses or qualifying relatives incapable of self-care, and qualifying relatives age 65 or older (disregarding federal benefits such as Social Security, disability, or food assistance in determining qualifying relative status).