Which of the following new rules is included in the TCJA regarding the Earned Income Tax Credit?

The Tax Cuts and Jobs Act (TCJA) introduced several important changes to tax administration, particularly concerning the Earned Income Tax Credit (EITC). Among these changes are provisions aimed at improving compliance and ensuring that the credits are properly claimed.

One significant aspect of the TCJA is that the IRS was granted increased authority to validate earned income. This enhancement allows the IRS to implement stricter verification processes to ensure that individuals claiming the EITC accurately report their income levels. Such measures are crucial given the EITC's role in providing financial assistance to lower-income families, and the potential for misuse of the credit can be more effectively minimized through these authority enhancements.

Furthermore, the requirement for taxpayers to report self-employment earnings has been emphasized. This is particularly pertinent for individuals whose income derives from self-employment, as accurate reporting is necessary for fair tax calculations and compliance with the EITC eligibility criteria.

Additionally, employers must now provide certain payroll information that aids the IRS in verifying the income claimed for the EITC. By doing so, the IRS can cross-reference income data more efficiently, further ensuring that the credits are claimed correctly and reducing the likelihood of fraud.

The combination of these measures—enhanced IRS authority, requirements for self-em