Section 1 Short title
This Act may be cited as the “EITC for Childless Workers Act of 2014”.
EITC for Childless Workers Act of 2014
A BILL
To amend the Internal Revenue Code of 1986 to expand the earned income tax credit.
Sec. 2 Age eligibility lowered to 21
Sec. 3 Increase in childless earned income tax credit
Increase in credit percentage and phaseout percentage— The table under subparagraph (A) of section 32(b)(1) of the Internal Revenue Code of 1986 is amended by striking “7.65” each place it appears and inserting “23.15”.
Increase in earned income amount— The table under subparagraph (A) of section 32(b)(2) of such Code is amended by striking “$4,220” and inserting “$6,480”.
Increase in phaseout amount— The table under subparagraph (A) of section 32(b)(2) of such Code is amended by striking “$5,280” and inserting “$16,630”.
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)” after “$5,000”.
Inflation adjustments—
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” and “$16,630” dollar amounts in subsection (b)(2)(A) shall be increased by an amount equal to—
“(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” for “calendar year 1992” in subparagraph (B) thereof.”
Conforming amendments—
Section 32(j)(1) of such Code is amended by inserting “except as provided in paragraph (2)” before “each of the dollar amounts”.
Section 32(j)(2)(A) of such Code is amended by inserting “or (2)” after “paragraph (1)”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.
Sec. 4 Residents of non-mirror code United States possessions eligible for earned income tax credit
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.
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.
Definitions and special rule— For purposes of this section—
Possession of the United States— The term possession of the United States includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.
Mirror code tax system— The term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
Treatment of payments— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 32 of the Internal Revenue Code of 1986.
Effective date— This section shall apply to taxable years beginning after December 31, 2013.