S.3432

Allows disaster-affected taxpayers to use prior year's income to determine eligibility for the earned income credit and child tax credit.

The Working Families Disaster Tax Relief Act amends the Internal Revenue Code to provide relief to disaster-affected taxpayers. It allows those affected by a qualified disaster to use their earned income from the preceding taxable year to determine eligibility for the earned income credit and the refundable portion of the child tax credit. This applies to taxpayers whose principal place of abode or work is in a qualified disaster area or who are displaced from their principal place of abode due to a qualified disaster. The changes apply to taxable years beginning after December 31, 2024.