WRCR Act of 2025

The WRCR Act of 2025 expands the Earned Income Tax Credit (EITC) to include qualifying students who meet specific criteria, such as receiving a Federal Pell Grant or having household income below 300% of the poverty line. It lowers the age requirement for eligibility from 25 to 18 and creates a special rule treating certain care-giving and learning activities as "compensated work" for EITC purposes. The bill increases credit percentages for certain taxpayers, modifies phaseout amounts to $4,000 (single filers) and $30,000 (joint filers), and establishes an advance payment system allowing monthly EITC payments up to 75% of the estimated credit. These changes directly affect low-income workers, students, and families with children who qualify for the EITC, with the advance payments beginning in 2026 for taxable years after 2024.