Expanding the Earned Income Tax Credit for Young Children
The Working Parents Tax Relief Act of 2026, H.R. 8305, would amend IRC § 32(c) to increase the EITC for eligible filers with qualifying children under age 4. The bill’s primary provision would give qualifying filers up to an additional $5,500 per child under age 4, for a maximum of three children.
Under the bill, a filer with one qualifying child under age 4 would see the credit percentage increased by 42.24 percentage points. Filers with two or more qualifying children would see the credit percentage increase by 30.07 percentage points for each of their youngest three qualifying children under age 4. The phaseout percentage would also increase by five percentage points for each such qualifying child, up to three.
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