LEAVE A REPLY

Please enter your comment!
Please enter your name here

House Democrats have unveiled a comprehensive package of social and climate change proposals, including a boost for millions of Americans with a permanent expansion of the earned income tax credit.

The earned income tax credit provides a write-off for low- to moderate-income families. Taxpayers must have earned income — wages and payments not including investments — and the credit may increase for families with eligible children.

“The earned income tax credit is a proven boost for people who do important jobs but receive low pay,” said Kris Cox, deputy director of federal tax policy at the Center on Budget and Policy Priorities.

“And there’s been a major flaw in that it has really left out adults who don’t raise children in the home,” she said.

More from Personal Finance:
House Democrats propose top 39.6% tax rate at these income levels
Football betting is in full swing. Don’t forget the taxman if you win
House Democrats propose extending expanded child tax credit to 2025

The credit is a percentage of earnings, and it’s refundable, meaning it may reduce someone’s tax bill or provide a refund, even if it’s more than what they owe.

Previously, workers without children have received little benefit from the earned income tax credit. However, the American Rescue Plan increased the benefit for these individuals up to $1,502 in 2021, almost triple the former write-off.

- A word from our sposor -

House Democrats push for permanent earned income tax credit expansion