Bill > S3432

This bill, titled the Working Families Disaster Tax Relief Act, allows individuals affected by a qualified disaster, meaning a disaster declared by the President, to use their income from the previous tax 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 principal home or workplace was in a declared disaster area or zone, or if they were displaced from their home due to a disaster, they can choose to use their prior year's earnings to qualify for these credits, which can provide significant financial relief, especially if their income was reduced in the current disaster year. These changes are set to take effect for tax years beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3432/all-info