What does Preamble of Young Adult Tax Credit Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment aims to establish a refundable young adult tax credit. The bill includes a provision for monthly advance payments of the tax credit.

What does SHORT TITLE. of Young Adult Tax Credit Act do?

This Act is formally titled the Young Adult Tax Credit Act.

What does ESTABLISHMENT OF REFUNDABLE YOUNG ADULT TAX CREDIT WITH MONTHLY of Young Adult Tax Credit Act do?

This section amends the Internal Revenue Code of 1986 to establish a monthly young adult tax credit. The credit is calculated as $500 per specified young adult each month, with potential increases based on the Consumer Price Index (CPI) after December 31, 2027. A 'specified young adult' is defined as an individual aged 18-24 who is a U.S. citizen, national, or resident. The credit is denied to individuals claimed as dependents on another taxpayer's return. If the taxpayer has a principal place of abode in the United States or Puerto Rico for more than half of a calendar month, the credit may be refundable. Advance payments made under section 7527B will reduce the credit amount, and excess payments may be recaptured under certain circumstances, such as fraud or reckless disregard of rules. The Secretary will pay amounts to American Samoa to offset any loss in benefits to its residents due to the application of this section. The amendments apply to taxable years beginning after December 31, 2026, and calendar months beginning after December 31, 2026, for advance payments.

What does OUTREACH CAMPAIGN. of Young Adult Tax Credit Act do?

This section establishes an outreach campaign to inform the public about the young adult tax credit created by this Act. The Secretary of the Treasury, in coordination with local community-based organizations, will conduct this campaign. The campaign aims to provide information regarding section 24A of the Internal Revenue Code of 1986 and assist individuals in claiming the credit. The Secretary will disseminate information through the IRS public website and direct mailings to potentially eligible individuals. Outreach efforts will prioritize populations less likely to file taxes or have bank accounts.

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Young Adult Tax Credit Act

Last updated: 5/26/2026 · Introduced: 5/26/2026

Author: Morgan McGarvey (D-KY)

TL;DR (AI)

This bill creates a refundable tax credit of up to $500 per month for young adults aged 18-24 who are U.S. citizens or residents and not claimed as dependents.
The bill authorizes advance monthly payments of the tax credit, with mechanisms to recapture excess payments in cases of fraud or disregard of rules.
The bill establishes a public outreach campaign, coordinated with community organizations, to inform eligible individuals about the new tax credit and assist them in claiming it.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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