(USNewsMag.com) – Every year, millions of low-income Americans with children qualify for the Earned Income Tax Credit (EITC). The tax break saves families thousands of dollars. Now, the IRS has extended the credit to include younger Americans without kids, as well.
In 2021, when President Joe Biden signed the American Rescue Act, lawmakers extended the tax credit to childless adults. Previously, it was only available to people ages 25 to 64. However, now adults ages 19 qualify and there’s no longer an upper age limit. The exception to the age rule is for full-time students who are under age 24; they don’t qualify. People who are 18 years old and facing homelessness, or recently out of foster care, can also qualify.
The credit is still income-based, meaning only adults with an earned income below $21,430 or couples with incomes less than $27,380 qualify for the tax break.
❤️ Check out the details about the Earned Income Tax Credit or #EITC, a valuable benefit for low- to moderate-income workers and families. #EITCDayhttps://t.co/iufrYvDmMQ
— IRSnews (@IRSnews) January 28, 2022
It’s important that Americans fill out the right paperwork to ensure they receive their credits. The IRS has added a fact sheet to its website to thoroughly explain who qualifies and how to receive the credit. Those who meet the requirements can receive up to $1,502.
Reach out to a tax professional or call the IRS to verify eligibility for the credit.
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