S. 3542 - COVID-19 Earned Income Act

116TH CONGRESS
2D SESSION

S. 3542

To provide COVID-19 related assistance through a special earned income
rule for purposes of the refundable child and earned income credits for taxable year 2020.

IN THE SENATE OF THE UNITED STATES

MARCH 19, 2020

Mr. BROWN (for himself and Mr. CASSIDY) introduced the following bill;
which was read twice and referred to the Committee on Finance

A BILL

To provide COVID-19 related assistance through a special earned income rule for purposes of the refundable child and earned income credits for taxable year 2020.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT

This Act may be cited as the "COVID-19 Earned Income Act".

SEC. 2. SPECIAL RULE FOR DETERMINING EARNED INCOME.

(a) IN GENERAL. — If the earned income (as defined in section 32(c)(2) of the Internal Revenue Code of 1986) of a taxpayer for the applicable taxable year is less than the earned income (as so defined) of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting —

(1) such earned income for the preceding taxable year; for

(2) such earned income for the applicable taxable year.

(b) APPLICABLE TAXABLE YEAR. — For purposes of this section, the term "applicable taxable year" means taxable year 2020.