A bill to amend the Internal Revenue Code of 1954 to provide a tax credit for low-income employed and self-employed individuals.

Authorizes the Secretary of the Treasury to make cash payments to low income employed and self-employed individuals. States that the amount of the payment to which an eligible individual is entitled under this Act for any calendar year is an amount equal to 10 percent of not more than $4,000 of the wages, compensation, and self-employment income paid to or derived by him or her.

States that the amount of the payment to which an eligible individual is entitled for any calendar year shall be reduced by one-tenth of the amount by which his or her income for the calendar year exceeds $4,000.

Sets forth procedures for making advance payments to eligible individuals. States that an eligible individual may elect for any taxable year to take the amount of any payment to which he is entitled under this Act as a credit against tax under the Internal Revenue Code. Establishes procedures for recovery of overpayments by the Secretary of the Treasury.

Requires the Secretary to develop simple and expedient application forms and procedures for use by eligible individuals who wish to obtain the benefits of this act. Authorizes to be appropriated for each fiscal year such sums as may be necessary to enable the Secretary to make payments under this act.

Provides that gross income does not include any amounts received as payments under this Act.