Bill > HR2898

This bill amends the Internal Revenue Code to create a permanent "lookback" provision for the Earned Income Tax Credit (EITC), which is a refundable tax credit designed to assist low to moderate-income working individuals and families. Specifically, the bill allows taxpayers to elect to calculate their EITC using their earned income from the previous tax year if their current year's earned income is lower. This means that if a taxpayer experiences a reduction in income, they can choose to base their tax credit on the higher income from the prior year, potentially receiving a larger credit. The provision would take effect for tax years beginning after December 31, 2024, giving taxpayers more flexibility in claiming the EITC during years when their income has decreased. This change could provide important financial support for workers experiencing temporary income drops, such as those resulting from job loss, reduced work hours, or other economic challenges.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2898/all-info