Working Families Disaster Tax Relief Act

This bill allows disaster victims to use their previous year's income instead of current year's income when calculating eligibility for the child tax credit and earned income credit. It directly affects taxpayers whose homes or workplaces were in a federally declared disaster zone during the disaster period, or those displaced from their homes due to the disaster. Key provisions let eligible individuals elect to substitute their prior taxable year's earned income for the current year in credit calculations, simplifying access to relief after income disruptions. The changes apply to tax years beginning after December 31, 2024.