,i #aafth ,,congress #ast ,session ,h4 ,r4 #ebga ,,in ,,the ,,house ,,of ,,representatives ,november #bf1 #bjai,ms4 ,moore 7for herself1 ,ms4 ,fudge1 ,mr4 ,bishop of ,georgia1 ,ms4 ,bass1 ,ms4 ,lee of ,california1 ,mr4 ,clay1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,mr4 ,rush1 ,mr4 ,butterfield1 ,mrs4 ,watson ,coleman1 ,ms4 ,omar1 ,ms4 ,jackson ,lee1 ,ms4 ,norton1 ,ms4 ,schakowsky1 ,mr4 ,cohen1 ,ms4 ,tlaib1 ,mr4 ,pocan1 ,mr4 ,nadler1 ,ms4 ,escobar1 ,mr4 ,hastings1 ,ms4 ,jayapal1 ,ms4 ,judy ,chu of ,california1 ,mr4 ,huffman1 ,mrs4 ,lawrence1 ,ms4 ,pressley1 ,mr4 ,garca of ,illinois1 ,mr4 ,khanna1 ,ms4 ,garcia of ,texas1 ,ms4 ,haaland1 ,mr4 ,grijalva1 ,mr4 ,cicilline1 and ,mr4 ,ryan7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand and improve the earned income tax credit4 #a4 ,short title ,this ,act may be cited as the ,worker ,relief and ,credit ,reform ,act of #bjai or as the ,,wrcr ,act of #bjai4 #b4 ,expansion and improvement of earned income tax credit 7a7 ,application to students 7#a7 ,in general ,section #cb7;c77#a77;,a77i7 of the ,internal ,revenue ,code of #aihf is amended by inserting who is a qualifying student or after any individual4 7#b7 ,qualifying student ,section #cb7;c7 of such ,code is amended by redesignating paragraph 7#d7 as paragraph 7#e7 and inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,qualifying student 7,a7 ,in general ,the term qualifying student means1 with respect to any taxable year1 any individual who-- 7i7 is an eligible student 7as defined in section #be;,a7b77#c77 with respect to at least one academic period beginning during such taxable year1 7ii7 either-- 7,i7 qualifies for a ,federal ,pell ,grant with respect to such academic period1 or 7,,ii7 meets the requirements of subparagraph 7,b7 or 7,c7 for the taxable year1 and 7iii7 is not a dependent for whom a deduction is allowable under section #aea to another taxpayer for any taxable year beginning in the same calendar year as such taxable year4 7,b7 ,independent students ,in the case of any independent student1 the requirements of this subparagraph are met for such taxable year if the household income of the taxpayer is less than #cjj percent of the poverty line for the size of the family involved for the taxable year4 7,c7 ,other students 7i7 ,in general ,in the case of any individual who is not an independent student1 the requirements of this subparagraph are met for such taxable year if the aggregate household incomes of all the individual's specified supporters 7and the taxpayer if not otherwise taken into account7 for the taxable years of such supporters which end in or with the calendar year in which such individual's taxable year begins is less than #cjj percent of the poverty line for the size of the family involved 7determined on a single aggregate basis7 for the taxable year4 7ii7 ,specified supporter ,the term specified supporter means1 with respect to any individual described in clause 7i71 any taxpayer with respect to whom such individual was a dependent for any taxable year ending in the #c-year period described in subparagraph 7,d77i74 7,d7 ,independent student defined 7i7 ,in general ,the term independent student means any individual if such individual was not a dependent of another taxpayer for any taxable year ending in the #c-year period which ends on the first day of the first academic period with respect to which such individual is an eligible student 7as defined in section #be;,a7b77#c774 7ii7 ,certain academic periods disregarded ,an academic period shall be disregarded under clause 7i7 if such academic period ends more than #b years before the beginning of the next academic period with respect to which the individual is an eligible student 7as defined in section #be;,a7b77#c774 7,e7 ,other definitions 7i7 ,household income ,the term household income has the meaning given such term in section #cf;,b7d77#b74 7ii7 ,poverty line ,the term poverty line has the meaning given such term in section #cf;,b7d77#c77;,a74 7iii7 ,family size ,the family size involved with respect to any taxpayer shall be determined under rules similar to the rules of section #cf;,b7d77#a74 4 7#c7 ,conforming amendment ,section #cb7;c77#a77;,a77ii7 of such ,code is amended by striking any other individual who does not have a qualifying child and inserting any individual not described in clause 7i74 7b7 ,modification of age requirements ,section #cb7;c77#a77;,a77ii77,,ii7 of such ,code is amended by striking has attained age #be but not attained age #fe and inserting has attained age #ah4 7c7 ,care-,giving and learning taken into account as compensated work ,section #cb7;a7 of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,special rule for qualifying students and certain individuals with one or more qualifying dependents ,for purposes of paragraph 7#a71 any individual-- 7,a7 who is a qualifying student1 or 7,b7 who has a qualifying dependent1 shall be treated as having earned income for the taxable year which is equal to the earned income amount with respect to such individual for such taxable year4 4 7d7 ,treatment of certain qualifying relatives 7#a7 ,in general ,section #cb7;c77#c7 of such ,code is amended by striking all that precedes subparagraph 7,b7 and inserting the following3 7#c7 ,qualifying dependent 7,a7 ,in general ,the term qualifying dependent means-- 7i7 a qualifying child of the taxpayer1 as defined in section #aeb7;c71 determined-- 7,i7 by substituting #ab for #ai in paragraph 7#c77;,a77i7 thereof1 and 7,,ii7 without regard to paragraphs 7#a77;,d7 and 7#c77;,a77ii7 thereof and section #aeb7;e71 7ii7 any individual who is physically or mentally incapable of caring for himself or herself 7within the meaning of section #ba7;b77#a77 and who-- 7,i7 is the taxpayer's spouse1 or 7,,ii7 is a qualifying relative of the taxpayer1 as defined in section #aeb7;d71 determined without regard to paragraph 7#a77;,b7 thereof and by treating an individual as a qualifying child of the taxpayer for purposes of paragraph 7#a77;,d7 thereof only if such individual is a qualifying child of the taxpayer as determined under clause 7i7 of this subparagraph1 or 7iii7 any qualifying relative of the taxpayer 7as defined in section #aeb7;d71 determined without regard to paragraph 7#a77;,b7 thereof7 who has attained age #fe as of the close of the calendar year in which the taxable year of the taxpayer begins4 ,for purposes of determining if any individual is a qualifying relative of the taxpayer under clause 7ii77,,ii7 or 7iii71 section #aeb7;d77#a77;,c7 shall be applied by not taking into account any benefits received by such individual pursuant to any ,federal program 7or any ,state or local program financed in whole or in part with ,federal funds7 related to health care1 cash aid1 child care1 food assistance1 housing and development1 social services1 employment and training1 or energy assistance4 4 7#b7 ,conforming amendments 7,a7 ,section #cb7;c77#a77;,a77i7 of such ,code are each amended by striking qualifying child and inserting qualifying dependent4 7,b7 ,section #cb7;c77#a77;,b7 of such ,code is amended-- 7i7 by striking qualifying child and inserting qualifying dependent1 and 7ii7 by striking child in the heading and inserting dependent4 7,c7 ,section #cb7;c77#a77;,f7 of such ,code is amended-- 7i7 by striking qualifying children and inserting qualifying dependents1 7ii7 by striking qualifying child and inserting qualifying dependent1 and 7iii7 by striking qualifying child in the heading and inserting qualifying dependent4 7,d7 ,section #cb7;c77#c77;,d77i7 of such ,code is amended by striking qualifying child both places it appears and inserting qualifying dependent4 7e7 ,modification of percentages and amounts 7#a7 #ajj percent credit percentage ,paragraph 7#a7 and paragraph 7#b77;,a7 of section #cb7;a7 of such ,code are each amended by striking the credit percentage of4 7#b7 #bj percent phaseout percentage ,section #cb7;a77#b77;,b7 of such ,code is amended by striking the phaseout percentage and inserting #bj percent4 7#c7 ,modification of earned income and phaseout amounts ,section #cb7;b7 of such ,code is amended to read as follows3 7b7 ,earned income amount2 phaseout amount ,for purposes of this section-- 7#a7 ,earned income amount ,the term earned income amount means #d1jjj 7twice such amount in the case of a joint return74 7#b7 ,phaseout amount ,the term phaseout amount means #cj1jjj 7#ej1jjj in the case of a joint return74 7#c7 ,inflation adjustment ,in the case of any taxable year beginning after #bjai1 the #d1jjj amount in paragraph 7#a7 and each dollar amount in paragraph 7#b7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #bjah for #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase under the preceding sentence is not a multiple of #ej1 such increase shall be rounded to the next lowest multiple of #ej4 4 7#d7 ,conforming amendments 7,a7 ,section #cb7;i7 of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning after #bjah1 the #b1bjj amount in subsection 7i77#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #aiie for #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any increase under subparagraph 7,a7 is not a multiple of #ej1 such increase shall be rounded to the next lowest multiple of #ej4 4 7,b7 ,section #cb of such ,code is amended by striking subsection 7j74 7f7 ,increased credit for certain unmarried individuals with #b or more qualifying children 7#a7 ,in general ,section #cb of such ,code is amended by inserting after subsection 7f7 the following new subsection3 7g7 ,increased credit for certain unmarried individuals with #b or more qualifying children 7#a7 ,in general ,in the case of a qualified individual1 the amount of the credit otherwise determined under subsection 7a7 shall be increased by the amount of the credit determined under this section as such section was in effect for taxable years beginning in #bjah but with the modifications described in paragraph 7#b74 7#b7 ,modifications ,solely for purposes of determining the increase under paragraph 7#a7-- 7,a7 ,credit percentage ,the credit percentage shall be equal to-- 7i7 in the case of a qualified individual with #b qualifying children1 #ab4e percent1 and 7ii7 in the case of a qualified individual with #c or more qualifying children1 #ah4ge percent4 7,b7 ,phaseout percentage ,the phaseout percentage shall be equal to #e percent4 7,c7 ,application of inflation adjustment ,section #cb7;j7 as in effect for taxable years beginning in #bjah shall be applied by taking into account the taxable year for which the increase under paragraph 7#a7 is determined4 7#c7 ,qualified individual ,for purposes of this subsection1 the term qualified individual means any individual who-- 7,a7 is not married 7as determined under section #ggjc71 and 7,b7 has #b or more qualifying children4 7#d7 ,qualifying child ,for purposes of this subsection1 the term qualifying child means a child described in subsection 7c77#c77;,a77i7 determined without regard to subclause 7,i7 thereof4 4 7g7 ,advance payment 7#a7 ,in general ,chapter #gg of such ,code is amended by adding at the end the following new section3 #gebi4 ,advance payment of earned income credit2 earned income savings accounts 7a7 ,in general ,not later that the date that is #b years after the date of the enactment of this section1 the ,secretary shall establish a program for making direct advance monthly payments of the credit allowable under section #cb to taxpayers who elect to receive such payments4 7b7 ,limitation ,the aggregate monthly payments made under subsection 7a7 with respect to any taxpayer for any taxable year shall not exceed #ge percent of the estimated amount of the credit allowable under section #cb to such taxpayer for such taxable year4 7c7 ,election ,the election under subsection 7a7 may be made or changed for subsequent periods at any time during the taxable year4 ,in the case of an election made after the beginning of a taxable year1 the monthly advance payments shall be made for months beginning after the date that such election becomes effective and the total amount of advance payments 7subject to the limitation of subsection 7b77 shall be prorated among the remaining months4 7d7 ,method of payment ,the program established under subsection 7a7 shall include an option for taxpayers to elect to receive payments under such program by prepaid debit card4 7e7 ,reports to taxpayers 7#a7 ,in general ,with respect to payments made under this section for any calendar year1 not later than ,january #ca of the following calendar year1 the ,secretary shall issue a statement to each individual with respect to whom payments were made under this section setting forth-- 7,a7 the name1 address1 and ,,tin of such person1 7,b7 the aggregate amount of payments made under this section with respect to such person for such calendar year1 7,c7 a statement that such individual is required to file a return of tax with respect to taxable years which include any portion of such calendar year regardless of whether such individual has income tax liability with respect to such taxable years1 and 7,d7 such other information as the ,secretary may provide4 7#b7 ,election to receive statement through on-line portal ,a taxpayer may elect to receive the statement described in paragraph 7#a7 through the on-line portal described in subsection 7f74 7f7 ,recapture of excess payments ,if the aggregate payments made to any taxpayer under subsection 7a7 with respect to any taxable year exceed the credit allowed under section #cb 7determined without regard to subsection 7h7 thereof7 with respect to such taxpayer for such taxable year1 the tax imposed by chapter #a with respect to such taxpayer for such taxable year shall be increased by such excess4 7g7 ,restriction on allowance of advance payment if excess payments not repaid ,in the case of a taxpayer who fails to pay any tax liability which includes an increase determined under subsection 7f7 before the date on which payment of such tax is due1 no payment shall be made under subsection 7a7 to such taxpayer during the period beginning on such date and ending with the #b-year period which begins on the date that such tax liability 7and any interest or penalties in connection with such liability7 has been paid in full4 4 7#b7 ,coordination with credit ,section #cb of such ,code1 as amended by subsection 7f71 is amended by inserting after subsection 7g7 the following new subsection3 7h7 ,coordination with advance payment of credit ,with respect to any taxable year1 the amount which would 7but for this subsection7 be allowed as a credit to the taxpayer under this section shall be reduced 7but not below zero7 by the aggregate payments made under section #gebi to such taxpayer for such taxable year4 4 7#c7 ,one-on-one consultations ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall ensure that in person1 telephonic1 and virtual one-on-one consultations between taxpayers and the ,internal ,revenue ,service are available to assist taxpayers at all times during regular business hours 7and1 in the case of in person consultations1 at all taxpayer assistance centers of the ,internal ,revenue ,service7 in determining-- 7,a7 their eligibility for the advance payment program established under section #gebi1 7,b7 the amount of the monthly payment for which the taxpayer is eligible under such program1 7,c7 the circumstances or changes in circumstances which1 based on the particular characteristics of such taxpayer1 are most likely to result in excess payments to such taxpayer which would be subject to recapture under section #gebi7;f71 and 7,d7 such other matters as such ,secretary or delegate determines appropriate4 7#d7 ,on-line portal ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall establish an on-line portal which allows taxpayers to-- 7,a7 elect to receive advance monthly payment under section #gebi1 including determining the estimated amount described in subsection 7b7 of such section and determining the amount of such monthly payments1 7,b7 report changes in circumstances and modify the amount of future advance monthly payments under such section1 and 7,c7 stop future advance monthly payments under such section and pay back any advance monthly payments4 7#e7 ,clerical amendment ,the table of sections for chapter #gg of such ,code is amended by adding at the end the following new item3 ,sec4 #gebi4 ,advance payment of earned income credit2 earned income savings accounts4 4 7h7 ,outreach pilot program 7#a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's designee7 shall establish a program to educate taxpayers regarding the availability of the earned income tax credit and the advance monthly payment of such credit4 ,pursuant to such program-- 7,a7 ,,eitc educational letters ,the ,secretary 7or designee7 shall provide a written notice describing the earned income tax credit1 the qualifications for receiving such credit1 and the program for the advance payment of such credit to each taxpayer that the ,secretary 7or designee7 determines is likely to qualify for such credit4 7,b7 ,district office workshops ,each district office of the ,internal ,revenue ,service shall provide workshops and seminars to assist and educate taxpayers regarding the earned income tax credit and the program to provide advance monthly payments of such credit4 7,c7 ,quarterly reminders ,the ,internal ,revenue ,service shall provide written reminders each calendar quarter to taxpayers participating in the program to provide advance monthly payments of the earned income tax credit that the amount of such payments are determined on the basis of estimates based on information previously provided by the taxpayer1 that the taxpayer is responsible for repaying any amounts received which are in excess of the actual amount of the earned income tax credit1 and that the taxpayer should review all the facts and circumstances that may affect the amount of the earned income tax credit of the taxpayer which the taxpayer is receiving in advance4 7#b7 ,termination ,the program established under paragraph 7#a7 shall terminate at the close of the #aj-year period beginning on the date that such program is established by the ,secretary 7or designee74 7#c7 ,report on effectiveness of program ,on the date which is #e years after the establishment of the program under paragraph 7#a71 the ,secretary shall submit to ,congress a report evaluating the effectiveness of the program1 including a detailed examination of the effectiveness of each of the initiatives described in subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#a74 7i7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4