COVID-19 Earned Income Act

COVID-19 Earned Income Act

This bill sets forth a special rule for determining the amount of the earned income tax credit and the refundable portion of the child tax credit. Specifically, the bill allows a taxpayer to use the earned income of the preceding taxable year in computing such credits if such income is greater than the income for the current taxable year (i..e., 2020).

[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.


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                    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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