2014 Proposals To Expand The EITC For Workers Without Qualifying Children
|
|
Current law |
President’s Proposal |
H.R.2116 |
H.R.4117 |
S.836 |
S.2162 (Sen.Murray) |
|
Phase-in rate |
7.65% |
15.3% |
15.3% |
23.15% |
15.3% |
15.3% |
|
Phases in up to |
$6,570 |
$6,570
|
$8,820 |
$6,480 |
$8,820 |
$8,820 |
|
Maximum credit |
$503 |
$1,005 |
$1,350 |
$1,500 |
$1,350 |
About $1400 in 2015 |
|
Phase-out rate |
7.65% |
15.3% |
15.3% |
23.15% |
15.3% |
15.3% |
|
Phase-out starts* |
$8,220 |
$11,500 |
$10,425 |
$16,630 |
$10,425 |
$10,425 |
|
Phase-out ends* |
$14,790 |
$18,070 |
$19,245
|
$23,110 |
$19,245 |
About $20,000 |
|
Lower age limit |
25 |
21 (full-time students only if they are financially independent) |
21 (but not full-time students) |
21 |
21 |
21 (but not full-time students) |
|
Upper age limit |
65 |
67 |
65 |
65 |
65 |
65 |
|
Other Provisions |
|
|
For workers with no qualifying children, allows them to qualify one child without social security number. Makes the ARRA EITC expansions permanent; revises eligibility rules relating to married individuals living apart, qualifying children claimed by another family member; and treatment of excess investment income. |
Includes Puerto Rico and North Marianna Islands. |
Makes the ARRA for EITC and CTC expansions permanent; revises eligibility rules relating to married individuals living apart, qualifying children claimed by another family member; and treatment of excess investment income. |
Includes a new deduction for lower income married couples with two earners and at least one child under 12; modifies the definition of earned income for the EITC to use income levels after the two earner deduction; Doubles the penalty for tax return prepares who fail to comply with due diligence requirements for the EITC.
|
* Under current law, the President’s proposal, H.R. 2116 and S836, levels are $5,500 higher for married filers. Under H.R.4117, for married childless workers, phase-out begins at $24,630 (currently $13,540) and ends at $31,110 (currently $20,020).