EITC for Childless Workers Act of 2014

To amend the Internal Revenue Code of 1986 to expand the earned income tax credit. 1. Short title This Act may be cited as the EITC for Childless Workers Act of 2014 2. Age eligibility lowered to 21 (a) In general Subclause (II) section 32(c)(1)(A)(ii) age 25 age 21 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. 3. Increase in childless earned income tax credit (a) Increase in credit percentage and phaseout percentage The table under subparagraph (A) of section 32(b)(1) 7.65 23.15 (b) Increase in earned income amount The table under subparagraph (A) of section 32(b)(2) of such Code is amended by striking $4,220 $6,480 (c) Increase in phaseout amount The table under subparagraph (A) of section 32(b)(2) of such Code is amended by striking $5,280 $16,630 (d) Joint returns Clause (i) of section 32(b)(3)(B) of such Code is amended by inserting ($8,000 in the case of an eligible individual with no qualifying children) $5,000 (e) Inflation adjustments (1) In general Subsection (j) of section 32 of such Code is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) Phaseout amount for individuals with no children In the case of any taxable year beginning after calendar year 2014, the $6,480 $16,630 (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2013 calendar year 1992 . (2) Conforming amendments (A) Section 32(j)(1) of such Code is amended by inserting except as provided in paragraph (2) each of the dollar amounts (B) Section 32(j)(2)(A) of such Code is amended by inserting or (2) paragraph (1) (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 4. Residents of non-mirror code United States possessions eligible for earned income tax credit (a) In general The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of section 32 of the Internal Revenue Code of 1986 (as amended by this Act) if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (b) Coordination with credit allowed against United States income tax No credit shall be allowed against United States income taxes for any taxable year under section 32 of such Code to any person who is eligible for a payment under a plan described in subsection (a) with respect to such taxable year. (c) Definitions and special rule For purposes of this section— (1) Possession of the United States The term possession of the United States (2) Mirror code tax system The term mirror code tax system (3) Treatment of payments For purposes of section 1324(b)(2) section 32 (d) Effective date This section shall apply to taxable years beginning after December 31, 2013.

Summary: EITC for Childless Workers Act of 2014 - Amends the Internal Revenue Code, with respect to the earned income tax credit, to: (1) reduce from 25 to 21 the age at which a taxpayer first becomes eligible for such credit, and (2) increase the amount of such credit for taxpayers with no qualifying children. Directs the Secretary of the Treasury pay to U.S. possessions (including the Commonwealths of Puerto Rico and the Northern Mariana Islands) that do not have a mirror code tax system with the United States amounts of the earned income credit which such possessions would have received if a mirror code tax system had been in effect.