Bill > S1975

This bill expands the Earned Income Tax Credit (EITC) and Child and Family Tax Credit in Massachusetts to reduce poverty by making several key changes. The bill increases the percentage of the federal EITC that taxpayers can claim from 40% to 50%, allows taxpayers to claim the credit using either a Social Security Number or an Individual Taxpayer Identification Number, and provides a full 100% credit for taxpayers without qualifying children. For taxpayers with more than three qualifying children, the bill increases the credit percentage by 5 percentage points for each additional child. The legislation also modifies eligibility requirements, allowing individuals who are 18 or older (or married to someone 18 or older) to qualify for the credit, and establishes a new household credit of $600 for dependents or qualifying individuals. Additionally, the bill requires the Department of Revenue to create a multilingual outreach program to inform eligible residents about tax credits, including notices to employers, coordination with unemployment and assistance programs, and collaboration with community organizations. These changes aim to provide more financial support to low-income families and increase access to tax credits. The bill will apply to tax years beginning on or after January 1, 2025.

Budget and Finance

https://malegislature.gov/Bills/194/S1975