Tax Equity for Children and the Working Poor Act of 2006

H.R. 5123, the Tax Equity for Children and the Working Poor Act of 2006, proposes changes to the Internal Revenue Code to adjust how the federal government defines a "qualifying child" for tax purposes. The bill aims to revise eligibility rules for the dependency exemption, the child tax credit, and the earned income tax credit to ensure these benefits are more accessible to low-income working families. If enacted, the legislation would modify existing residency and relationship requirements, potentially allowing more caregivers and working-class households to claim tax credits intended to offset the costs of raising children.