CT HB05626

Department of Revenue Services must study earned income amount requirements for earned income tax credit eligibility under Section 32 of the Internal Revenue Code and the impact on premature employment termination by credit recipients.

Department must submit a report to the joint standing committee on finance, revenue and bonding no later than January 1, 2017.

Report shall include recommendations for a graduated schedule allowing credit recipients to remain eligible upon small pay increases.

Report shall include recommendations for monthly distribution of earned income tax credit refunds instead of the current lump sum annual refund.

Report shall include a schedule for monthly refund distribution that decreases as pay increases without reducing the employee's monthly income.