Tuesday, February 01, 2022

Millions more people without children are now eligible for a tax credit that could save them thousands

 

You have to have earned income. Social Security and retirement don't count. I am interested in seeing if the small amount I got for working at the special election last year will qualify me.

 

https://www.businessinsider.com/childless-adults-earned-income-tax-credit-eitc-eligible-arp-2022-1

 

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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.

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 The IRS change reflects the federal government's ongoing expansions of the EITC to help more Americans struggling financially during the pandemic, with President Joe Biden changing it last year under the American Rescue Plan Act, granting temporary eligibility to all filers over 18 without kids, a change that's now permanent. People filing for an EITC can claim up to nearly $7,000 in credits. 

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The less one earns, the greater their EITC. Because it's a refundable tax credit, lower-income taxpayers who have little (or no) income-tax liability can receive the total amount of the credit as a tax refund anyway. 

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