Tax Cut for Workers Act of 2025

This bill expands the Earned Income Tax Credit (EITC) for workers without children and makes those rules permanent. It lowers the minimum age to claim the credit to 19 (24 for most students, and 18 for qualified former foster youth or homeless youth), and removes the upper age limit altogether. It also raises the credit and the income levels used to calculate and phase it out, and it will adjust these dollar amounts each year for inflation . The bill applies the EITC to Puerto Rico, other territories with “mirror code” tax systems, and American Samoa, broadening access for people living in the U.S. territories. If your earnings fall compared with the prior year, you can choose to use last year’s earnings to figure your credit, which can help during a pay cut or job loss.

Key points

• Who is affected: Low- and moderate-income workers, including those without children and residents of Puerto Rico and other U.S. territories .
• What changes: Lower age to qualify; no maximum age; larger credit with higher income limits; yearly inflation updates; option to use prior year earnings if current earnings drop .
• When: Applies to tax years beginning after December 31, 2025 (for most changes) .