The Tax Cut for Workers Act of 2025 expands the Earned Income Tax Credit (EITC), a tax benefit for low- and moderate-income workers, primarily targeting individuals without dependent children. The bill lowers the minimum age to claim the credit from 25 to 19 (or 24 for students, 18 for former foster youth and homeless youth), removes the current age cap of 65, and nearly doubles the credit percentage from 7.65 percent to 15.3 percent while increasing the income thresholds for eligibility. The legislation also extends these expanded EITC provisions to U.S. territories including Puerto Rico and American Samoa, and allows workers whose earned income decreases year-to-year to use their prior year's higher income to calculate a larger credit. These changes take effect for tax years beginning after December 31, 2025, with inflation adjustments built in to maintain the credit's value over time.
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