Budget & Taxes (Income Tax · Families)

The Working Parents Tax Relief Act of 2026 proposes to increase the Earned Income Tax Credit (EITC) for eligible parents of young children. It raises the EITC credit percentage for families with one child under age four and provides similar increases for families with two or more children under age four, specifically for the youngest three children. The bill also increases the rate at which the credit phases out for these families, applying to the youngest three children under age four. Additionally, it creates a mechanism for taxpayers to elect to receive their EITC refunds in equal monthly payments. These provisions would take effect for taxable years beginning after December 31, 2025.

This resolution expresses support for the Working Families Tax Cuts, a law already enacted in July 2025 that provides various tax benefits to American taxpayers. The bill directly affects individuals and families by recognizing specific provisions that reduce tax liability, including expanded child tax credits, increased standard deductions, and tax relief for tipped workers and overtime pay. Key provisions include making a four-person household earning under $73,000 generally face zero federal income tax, increasing the child tax credit to $2,200 per child, and allowing 529 accounts to cover K-12 and trade school expenses. The resolution also acknowledges tax relief for seniors, auto loan interest deductions for American-made vehicles, and expanded health savings account access. This is a procedural measure that formally acknowledges existing tax policies rather than creating new legislation.