Bill > HR905

This bill aims to modernize the Earned Income Tax Credit (EITC) by expanding its eligibility and providing additional benefits to low and middle-income workers. The legislation would extend the EITC to more groups, including qualifying students and individuals with various types of dependents, such as aged dependents. The bill introduces a minimum credit of $1,200 for students and individuals with certain dependents, and creates a monthly payment option that allows taxpayers to receive their tax credit in installments throughout the year instead of as a lump sum. Additionally, the bill includes a special provision for new low-income parents, allowing them to adjust their payments if they have a child born or adopted during the tax year. The legislation also establishes a Volunteer Income Tax Assistance Matching Grant Program to help low-income taxpayers prepare their tax returns, providing grants to organizations that offer free tax preparation services to underserved populations. The bill's findings emphasize the EITC's historical role in reducing child poverty, supporting working families, and helping to narrow income inequality by supplementing the earnings of low-wage workers.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/905/all-info