EARN IT Act

Enhancing Advancement, Reducing Noncompliance, and Improving Trust Act or the EARN IT Act

This bill amends the Internal Revenue Code to increase the Earned Income Tax Credit (EITC) for individuals with no qualifying children and to establish additional requirements for claiming the EITC and the child tax credit.

The bill modifies the EITC for individuals with no qualifying children by:

• increasing the credit and phaseout percentages,
• increasing the earned income and phaseout amounts,
• reducing the minimum age to claim the credit, and
• modifying the formula for inflation adjustments.

For a qualifying child to be taken into account for the EITC, a tax return must include a certification of the child's residency.

The bill prohibits the refundable portion of the child tax credit (commonly referred to as the additional child tax credit) from being claimed for a qualifying child unless the tax return includes a valid Social Security number for the child.

The bill increases from two to five years the disallowance period for taxpayers who improperly claim the EITC due to reckless or intentional disregard of rules and regulations.