COVID-19 Earned Income Act

Bill: 116-s-3542
Sponsor: full_name: Sen. Brown, Sherrod [D-OH]
Introduced: 2020-03-19
Policy area: Taxation
Subjects: Income tax credits

Poverty and welfare assistance

Tax treatment of families

Wages and earnings
Latest action: action_date: 2020-03-19
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-03-19
action_desc: Introduced in Senate
text: <p><strong>COVID-19 Earned Income Act</strong></p> <p>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). </p>

tv_txt: II 116th CONGRESS 2d Session S. 3542 IN THE SENATE OF THE UNITED STATES March 19, 2020 Mr. Brown (for himself and Mr. Cassidy ) introduced the following bill; which was read twice and referred to the Committee on Finance 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.

1. Short title This Act may be cited as the COVID-19 Earned Income Act . 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.