This legislation introduces a new provision to the Internal Revenue Code, establishing a lookback rule for individuals affected by federally declared disasters. The primary goal is to ensure that taxpayers whose income is reduced due to a disaster do not lose out on valuable tax credits. Under this rule, a qualified individual whose principal residence was in a disaster area can elect to use their earned income or social security taxes from the preceding taxable year if those amounts were higher than their income in the disaster year. This election specifically applies to the calculation of the Earned Income Tax Credit and the Child Tax Credit , helping maintain eligibility or the amount of these crucial credits despite disaster-related income loss. The election is uniform, applies to joint returns if one spouse qualifies, and incorrect use is treated as a mathematical error. These amendments will take effect for taxable years beginning after the bill's enactment.