“To amend the Internal Revenue Code of 1986 to establish a refundable young adult tax credit with monthly advance payment.”
No CRS summary available for this bill.
This section establishes a refundable monthly young adult tax credit under new Internal Revenue Code section 24A. It provides $500 per month for each taxpayer or dependent who is a specified young adult (at least 18 and under 25 years old) during the calendar month, with the amount indexed for inflation after December 31, 2027. The credit is refundable when the taxpayer maintains a principal place of abode in the United States or Puerto Rico for more than half the month, subject to identification requirements, reconciliation against advance payments under section 7527B, and recapture of excess advances in cases of fraud or other abuse. It also amends 31 U.S.C. 1324(b)(2) to authorize disbursements from the permanent appropriation for internal revenue refunds to cover this credit.
This section requires the Secretary of the Treasury, in coordination with local community-based organizations, to conduct an outreach campaign that informs the public about the young adult tax credit and assists eligible individuals with claiming it. The campaign must post information on the IRS website, send direct mailings to identified eligible taxpayers, and prioritize outreach to populations less likely to file taxes or maintain bank accounts.