Bill > HR6645

This bill, titled the Working Families Disaster Tax Relief Act, allows taxpayers affected by a qualified disaster, meaning a disaster declared by the President, to elect to use their earned income from the preceding taxable year to determine their eligibility for two important tax credits: the earned income credit and the refundable portion of the child tax credit. This means that if a taxpayer's income was reduced in the current year due to a disaster impacting their home or workplace in a declared disaster area, they can still qualify for these credits based on their higher income from the previous year, providing financial relief during difficult times. The changes are set to take effect for taxable years beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6645/all-info