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S3432119th CongressWALLET

Working Families Disaster Tax Relief Act

Sponsored By: Senator Klobuchar, Amy [D-MN]

Introduced

Summary

Allows disaster-affected taxpayers to use the preceding taxable year's earned income to determine eligibility for the Earned Income Tax Credit (EITC) and the refundable portion of the Child Tax Credit (CTC). It would tie eligibility to Presidential major disaster declarations under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

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  • Families with children: Makes the refundable Child Tax Credit easier to claim after a disaster by letting families use prior-year income when current earnings fall because of the disaster.
  • Low-income workers: Helps workers who lose income in a disaster qualify for the Earned Income Tax Credit by allowing substitution of the preceding year's earned income.
  • Displaced households: Covers people whose main home or workplace was in a declared disaster area and those displaced from their home during the incident period.
  • Tax filings and choice: Creates a discretionary election in the tax code to substitute the preceding taxable year for the current year when applying sections for the CTC and EITC.
  • Timing: Would apply to taxable years beginning after December 31, 2024.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

More tax help for disaster-affected families

This bill would let disaster-affected taxpayers use the prior year's earned income when figuring child tax and earned income credits. The choice would apply for tax years beginning after December 31, 2024. Using prior-year income could keep or raise refundable credits if your income fell because of the disaster.

Sponsors & CoSponsors

Sponsor

Klobuchar, Amy [D-MN]

MN • D

Cosponsors

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 12/11/2025

Roll Call Votes

No roll call votes available for this bill.

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