Congress expands tax credit to working families earning just $1 per year
S. 3596 — Stronger Start for Working Families Act · Filed by Maggie Hassan (D-NH) · 5 cosponsors · Introduced Jan 8, 2026 · Referred to committee
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What it does
This bill lowers the earned income threshold for the refundable child tax credit from $3,000 to $1, effective for tax years beginning after December 31, 2025. The change allows families with nearly any earned income—even $1—to claim the full refundable credit, removing a barrier that previously excluded very low-income working families. A conforming amendment strikes an obsolete provision.
Why we flagged it
The bill's sole operative mechanism is a downward adjustment of an income threshold in the tax code, making an existing refundable credit available to a broader population of working poor. It is a straightforward tax-benefit expansion.
What the text implies
- Families with self-employment income of $1 or more (e.g., gig workers, informal economy participants) become newly eligible; the credit may reach workers previously excluded by the $3,000 floor.
- The conforming amendment (striking IRC 24(h)(6)) removes an obsolete provision; its prior function should be verified in the public statute to confirm no unintended consequence.
The full analysis lists 3 implications of this text.
Who stands to gain
working families with children and earned income below $3,000 annually