Millions of additional low and middle-income people will be holding onto more cash this year, as long as they remember to fill out the right form come tax season.
The Internal Revenue Service (IRS) expanded the criteria to qualify for the Earned Income Tax Credit (EITC) last week, giving a permanent green light to those who are at least 19 years of age without children, as well as 18-year-olds recently out of foster care or facing homelessness.
Before this year’s round of changes, the EITC was only available to parents, childless people between the ages of 25 and 64, and older and younger Americans with dependents.
Until this year, having children was an additional qualifier. The American Rescue Plan introduced a temporary lift on the child requirement, roughly tripling the maximum credit for childless workers from $538 to $1,502 last year, as well as extending eligibility to childless Americans under age 25 and over age 65.