The Young Adult Tax Credit Act would create a new monthly tax credit of $500 for U.S. residents ages 18-24, beginning in 2027, that would be paid directly to eligible recipients throughout the year rather than as a lump sum at tax time. The credit is refundable, meaning young adults receive payments even if they owe no federal income taxes, with amounts indexed for inflation beginning in 2028. The Treasury Department would establish a multilingual online portal allowing recipients to manage their accounts, report income changes, and choose between monthly or annual payments, with the IRS reconciling any overpayments when taxes are filed. The law requires the IRS to notify recipients by January 31st each year of payments received and amounts owed back if eligibility changed, and Treasury must launch an outreach campaign using direct mail and community organizations to ensure young adults, particularly underrepresented populations, know how to claim the credit. The program would take effect January 1, 2027.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.