H.R.1436: EITC Modernization Act of 2019

The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The EITC is meant to supplement incomes of people and families with low incomes. The credit has been proven to have a positive impact on the health and education of children who live in poverty.

H.R. 1436 would attempt to mitigate some of the weaknesses of the current EITC structure. benefits would include family caregivers and students, and presents the option to receive the tax credit monthly, rather than all at once. It also decreases the age of eligibility from 25 to 18.

Currently, people who are eligible for EITC must be aware of their eligibility and how to claim that benefit on their tax returns in order to receive benefits. This effectively places the administrative burden on the individual. This legislation would alleviate this burden by increasing funding for the Volunteer Income Tax Assistance (VITA) Program, which offers tax-preparation services to low-income individuals. This would make the tax credit more accessible for those who need it.