Title: EARN IT Act
Policy area: Taxation

Summary:
Enhancing Advancement, Reducing Noncompliance, and Improving Trust Act or the EARN IT Act
This bill amends the Internal Revenue Code to increase the Earned Income Tax Credit (EITC) for individuals with no qualifying children and to establish additional requirements for claiming the EITC and the child tax credit.
The bill modifies the EITC for individuals with no qualifying children by:
For a qualifying child to be taken into account for the EITC, a tax return must include a certification of the child's residency.
The bill prohibits the refundable portion of the child tax credit (commonly referred to as the additional child tax credit) from being claimed for a qualifying child unless the tax return includes a valid Social Security number for the child.
The bill increases from two to five years the disallowance period for taxpayers who improperly claim the EITC due to reckless or intentional disregard of rules and regulations.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3379 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3379

 To amend the Internal Revenue Code of 1986 to provide for an increase 
  in the earned income tax credit for individuals with no qualifying 
                   children, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2017

  Mr. Coffman (for himself, Mr. Cicilline, Mr. Faso, and Mr. Takano) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide for an increase 
  in the earned income tax credit for individuals with no qualifying 
                   children, and for other purposes.

    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 ``Enhancing Advancement, Reducing 
Noncompliance, and Improving Trust Act'' or the ``EARN IT Act''.

SEC. 2. INCREASE IN EARNED INCOME CREDIT FOR INDIVIDUALS WITH NO 
              QUALIFYING CHILDREN.

    (a) Percentages.--The table in section 32(b)(1) of the Internal 
Revenue Code of 1986 is amended by striking ``7.65'' both places it 
appears and inserting ``15.3''.
    (b) Earned Income and Phaseout Amounts.--The table in section 
32(b)(2) of such Code is amended--
            (1) by striking ``$4,220'' and inserting ``$6,570''; and
            (2) by striking ``$5,280'' and inserting ``$11,500''.
    (c) Reduction in Minimum Age.--Section 32(c)(1)(A)(ii)(II) of such 
Code is amended by striking ``age 25'' and inserting ``age 21''.
    (d) Inflation Adjustments.--Section 32(j)(1)(B) of such Code is 
amended--
            (1) in clause (i) by inserting ``except as provided in 
        clause (iii),'' before ``in the case of'';
            (2) by striking ``and'' at the end of clause (i);
            (3) by striking the period at the end of clause (ii) and 
        inserting ``, and''; and
            (4) by adding after clause (ii) the following:
                            ``(iii) in the case of the $6,570 and the 
                        $11,500 amounts in subsection (b)(2)(B), by 
                        substituting ``calendar year 2017'' for 
                        ``calendar year 1992'' in subparagraph (B) of 
                        such section 1.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 3. CERTIFICATION OF CHILD RESIDENCY.

    (a) In General.--Section 32(c)(3) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(E) Residency certification requirement.--A 
                qualifying child shall not be taken into account under 
                subsection (b) unless the taxpayer includes on the 
                return of tax for the taxable year a certification of 
                the same principal place of abode as the taxpayer with 
                respect to whom the determination under section 
                152(c)(1)(B) is made. Such certification shall be 
                supported by proof, such as letters, records, or 
                affidavits, in a manner substantially similar to the 
                procedures for tax years 2003 to 2005 of a similar 
                requirement that the Secretary used for the study 
                entitled `IRS Earned Income Tax Credit (EITC) 
                Initiatives--Report on Qualifying Child Residency 
                Certification, Filing Status, and Automated 
                Underreporter Tests' (2008).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2017.

SEC. 4. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM ADDITIONAL CHILD TAX 
              CREDIT.

    (a) In General.--Section 24(e)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: ``No increase in 
credits shall be allowed under subpart C by reason of subsection (d) of 
this section with respect to any qualifying child for whom the taxpayer 
fails to include a valid social security number on such return''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2017.

SEC. 5. EXPANSION OF DISALLOWANCE PERIOD FOR TAXPAYERS WHO IMPROPERLY 
              CLAIM EITC BASED ON RECKLESS OR INTENTIONAL DISREGARD OF 
              THE RULES.

    (a) In General.--Section 32(k)(1)(B)(ii) of such Code is amended by 
striking ``2 taxable years'' and inserting ``5 taxable years''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.
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