WRCR Act of 2025
Sponsored By: Representative Rep. Moore, Gwen [D-WI-4]
Introduced
Summary
Would expand and modernize the Earned Income Tax Credit to widen who qualifies and to deliver part of the credit as monthly advance payments. It restructures who counts as a qualifying student or dependent, treats caregiving and learning as earned income, and changes how the credit is calculated.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 6 benefits, 0 costs, 1 mixed.
Extra EITC for unmarried parents
If enacted, unmarried filers with two or more qualifying children would get an extra EITC boost. The boost would be 12.5% for two children and 18.75% for three or more. The added amount would phase out at 5%. This would apply to tax years beginning after December 31, 2024.
EITC age drops to 18
If enacted, workers without qualifying children could claim the EITC starting at age 18. This would replace the old rule that used age 25 to under 65 in that clause. This would apply to tax years beginning after December 31, 2024.
EITC help for students and caregivers
If enacted, qualifying students and people with a qualifying dependent would be treated as having earned income equal to the EITC “earned income amount.” Students could qualify if they have an academic period during the year and get a Pell Grant or have household income under 300% of the poverty line. They could not be claimed as someone else’s dependent that year. This would apply to tax years beginning after December 31, 2024.
More relatives count for the EITC
If enacted, more people could count as your EITC dependent. Some children would qualify at age 12 instead of 19. A spouse or relative who cannot care for themselves could count, and relatives age 65 or older could count. Certain federal benefits would not count as income in the dependent test. This would apply to tax years beginning after December 31, 2024.
New EITC income and phaseout levels
If enacted, the EITC “earned income amount” would be $4,000 ($8,000 for joint filers). The phaseout would start at $30,000 ($50,000 for joint filers). The EITC phaseout rate would be 20%. For years after 2025, these amounts would adjust for inflation and be rounded down to the nearest $50. These changes would apply to tax years beginning after 2025.
Monthly EITC advances with payback rules
If enacted, you could choose monthly EITC advances, up to 75% of your estimated credit. You could elect anytime, and late-year choices would be split over the remaining months. If advances exceed your allowed credit, your tax for that year would go up by the extra amount, with interest and penalties. You could be blocked from more advances until the debt is paid and two years pass. The IRS would offer prepaid debit cards, a portal, one‑on‑one help, and send an annual statement by January 31. The advance program would start within two years of enactment.
IRS outreach on EITC and advances
If enacted, the IRS would start a 10‑year outreach pilot within one year. It would send notices to likely‑eligible taxpayers and hold local workshops. People getting monthly advances would get quarterly reminders that payments are estimates and that excess must be repaid. The IRS would report to Congress on results five years after the program starts.
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Sponsors & CoSponsors
Sponsor
Rep. Moore, Gwen [D-WI-4]
WI • D
Cosponsors
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 3/25/2025
Rep. Davis, Danny K. [D-IL-7]
IL • D
Sponsored 3/25/2025
Rep. Gomez, Jimmy [D-CA-34]
CA • D
Sponsored 3/25/2025
Rep. Pingree, Chellie [D-ME-1]
ME • D
Sponsored 3/25/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 3/25/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 3/25/2025
Rep. Scanlon, Mary Gay [D-PA-5]
PA • D
Sponsored 3/25/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 3/25/2025
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 3/25/2025
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 4/1/2025
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 5/29/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 11/4/2025
Rep. Sykes, Emilia Strong [D-OH-13]
OH • D
Sponsored 3/24/2026
Roll Call Votes
No roll call votes available for this bill.
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