Section 1 Short title
This Act may be cited as the “COVID-19 Earned Income Act”.
COVID-19 Earned Income Act
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.
Sec. 2 Special rule for determining earned income
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—
such earned income for the preceding taxable year; for
such earned income for the applicable taxable year.
Applicable taxable year— For purposes of this section, the term applicable taxable year means taxable year 2020.