A group of U.S. House Democrats on the Ways and Means Committee recently reintroduced the Worker Relief and Credit Reform Act. If passed, the bill would expand the Earned Income Tax Credit (EITC). This includes extending EITC eligibility criteria, increasing credit amounts and creating an advance payment regime administered by the IRS. The proposed bill’s changes would raise the maximum credit for single filers to $4,000 ($8,000 for married filers), lower the minimum eligibility age to 18 and eliminate the upper age limit of 65. For purposes of the EITC, educational activities would be treated as work. With a Republican majority in the House, passage is unlikely.
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