EITC Lookback Act

# EITC Lookback Act Summary **What It Would Do** The EITC Lookback Act would allow eligible taxpayers to use an alternative income calculation method when filing for the Earned Income Tax Credit (EITC). Specifically, it would let people use their income from the prior year instead of the current year if doing so results in a larger tax credit. This could help workers whose income dropped significantly during a tax year—for example, due to job loss or reduced hours—by allowing them to claim a larger refund based on their higher prior-year earnings. **Who It Affects** This bill primarily targets low- to moderate-income working families and individuals who rely on the EITC, which is designed to supplement earnings for people with limited income.

The change could especially benefit those who experience sudden income reductions during a year, helping them maintain financial stability during difficult periods. **Current Status** The bill is currently in committee, meaning it has been introduced but has not yet advanced to a full floor vote in the House of Representatives. No further action has been taken at this time.