Some taxpayers with past federal tax debts could get their Earned Income Tax Credit refunds, though other debts might still reduce them.
This bill would let certain taxpayers receive their Earned Income Tax Credit refunds without them being used to pay off past federal tax debts. Currently, the government can use tax refunds to pay off various old debts. This change would help taxpayers who have been classified as unable to pay their debts get their credit, though other types of debts could still reduce the refund.
Today, if you are owed a tax refund, the government can use that money to pay off various old debts you have, including past federal tax debts. This includes refunds from the Earned Income Tax Credit. If this bill becomes law, certain taxpayers who are classified as "currently not collectible" would receive their Earned Income Tax Credit refund without it being used to pay off past federal tax debts. Other types of debts, such as child support, could still reduce the refund.
S 5142 · 119th Congress · AI Summary by gemini-2.5-flash · 9/10
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