Bill > S4042

This bill, titled the "Keep Your Pay Act," proposes several changes to the Internal Revenue Code of 1986, primarily focused on increasing the standard deduction and modifying tax credits for families. Key provisions include a temporary increase in the standard deduction for taxable years between 2026 and 2035, alongside a temporary increase in income tax rates for the highest earners during the same period. The bill also aims to make permanent certain rules for the Earned Income Tax Credit (EITC), lowering the minimum age for individuals without qualifying children to 19 (with exceptions for students and homeless youth), removing the maximum age limit, and significantly increasing the credit's value and income thresholds. Furthermore, it introduces a new refundable Child Tax Credit, which would be paid out monthly in advance, with varying amounts based on a child's age, and subject to income limitations. This monthly advance payment system is designed to provide more immediate financial relief to families. The bill also includes provisions to extend the EITC to U.S. possessions and allows taxpayers to elect to use their prior year's earned income to calculate the credit. Finally, it establishes a new credit for certain other dependents, offering a $500 credit per dependent, also subject to income phase-outs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/4042/all-info