# Plain Language Summary: Tax Cut for Workers Act of 2025

This bill makes significant changes to the Earned Income Tax Credit (EITC), a tax benefit designed to help low and moderate-income workers. The EITC is money that the government gives back to eligible workers when they file their taxes—essentially a refund that can exceed what they paid in. This bill expands who qualifies and how much money they can receive.

The biggest changes affect workers without children. Currently, you have to be at least 25 years old to qualify for this credit, and you lose eligibility once you turn 65. This bill lowers the minimum age to 19 for most people, 24 for full-time students, and 18 for young people who were in foster care or are experiencing homelessness. It also removes the age cap entirely, so workers in their 70s and beyond can now qualify. The bill also doubles the credit percentage from 7.65% to 15.3%, meaning workers get significantly more money back. For example, the maximum income threshold where you can still receive the credit increases from roughly $4,220 to $9,820, allowing more moderate-income workers to benefit.

The bill also extends these benefits to U.S. territories like Puerto Rico and American Samoa, and adds a new option allowing workers to use their previous year's income if they earned more then than they do now. This helps people who experienced a temporary drop in earnings—they can get a bigger refund based on their higher previous year's income. All these changes take effect starting in 2026 and are designed to put more money directly into the pockets of working people, particularly younger workers and those without dependent children.