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119-hr-9031119th CongressWALLET

Young Adult Tax Credit Act

Sponsored By: Representative McGarvey, Morgan [D-KY-3]

Introduced

Summary

A monthly refundable $500 young adult tax credit that would deliver advance payments to eligible U.S. residents ages 18 up to 25. The bill would send monthly advance payments with a year‑end tax reconciliation and index the $500 baseline for inflation after 2027.

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  • Young adults and families: Qualifying individuals ages 18 through 24 who are U.S. citizens, nationals, or residents could receive $500 per month; a person claimed as a dependent by another taxpayer does not qualify for the credit.
  • Tax administration and integrity: Payments would be made monthly in advance and reconciled on the tax return. The plan requires online enrollment, identity verification, annual notices by January 31, and allows recapture of excess payments for fraud or improper payments.
  • Territories and outreach: The bill sets special rules for Puerto Rico, mirror‑code possessions, and American Samoa and requires the Treasury to run outreach targeted to people less likely to file or to have bank accounts.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Monthly advance payments program

This bill would require the IRS to send monthly advance payments equal to its estimate of the monthly young adult allowance. The IRS would run an online portal to start or stop payments, accept elections for a single annual lump sum instead, and allow multi‑language and mobile access. Payments would be sent electronically when possible and generally could not be taken by creditors, garnishment, or bankruptcy. The IRS would reconcile advances on the year‑end return by reducing the allowable credit by aggregate monthly payments and may recapture excess payments made because of fraud or reckless disregard. The IRS would also run outreach to reach people less likely to file or to have bank accounts and must send annual notices by January 31 listing total payments and any recapture.

Monthly young adult tax credit

This bill would create a refundable monthly tax credit of $500 per eligible young adult (ages 18–24) for each month of eligibility. The $500 baseline would be indexed for inflation for months beginning after December 31, 2027. The credit would apply for taxable years beginning after December 31, 2026. The credit is refundable only for months where the person has a principal place of abode in the United States or Puerto Rico for more than half the month. No credit would be allowed for a person another taxpayer can claim as a dependent, and dependent names and TINs must be on the return by the return due date.

Sponsors & CoSponsors

Sponsor

McGarvey, Morgan [D-KY-3]

KY • D

Cosponsors

  • Rep. Casar, Greg [D-TX-35]

    TX • D

    Sponsored 5/26/2026

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 5/26/2026

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 5/26/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 5/26/2026

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 5/26/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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