Bill Summary
The COVID-19 Earned Income Act is a bill that aims to provide financial assistance to individuals and families impacted by the COVID-19 pandemic. It does so by creating a special rule for determining earned income for the purposes of receiving refundable child and earned income tax credits for the year 2020. This means that individuals who earned less income in 2020 than they did in the previous year may be eligible for higher tax credits. The bill also specifies that the applicable year for this rule is 2020.
Possible Impacts
1. This legislation could provide financial assistance to individuals and families who have been negatively impacted by the COVID-19 pandemic by allowing them to claim a larger refund through the child and earned income tax credits.
2. The special earned income rule could potentially benefit low-income households by increasing their tax refund for the 2020 taxable year.
3. This Act could potentially ease the financial burden on taxpayers who have experienced a decrease in income due to the pandemic by allowing them to use their previous year's earned income for tax purposes instead of their current year's income.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6762 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6762
To provide COVID-19 related assistance through a special earned income
rule for purposes of the refundable child and earned income credits for
taxable year 2020.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2020
Mr. Higgins of New York (for himself and Mr. Kelly of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To provide COVID-19 related assistance through a special earned income
rule for purposes of the refundable child and earned income credits for
taxable year 2020.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``COVID-19 Earned Income Act''.
SEC. 2. SPECIAL RULE FOR DETERMINING EARNED INCOME.
(a) In General.--If the earned income (as defined in section
32(c)(2) of the Internal Revenue Code of 1986) of a taxpayer for the
applicable taxable year is less than the earned income (as so defined)
of the taxpayer for the preceding taxable year, the credits allowed
under sections 24(d) and 32 of the Internal Revenue Code of 1986 may,
at the election of the taxpayer, be determined by substituting--
(1) such earned income for the preceding taxable year; for
(2) such earned income for the applicable taxable year.
(b) Applicable Taxable Year.--For purposes of this section, the
term ``applicable taxable year'' means taxable year 2020.
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