Earned Income Tax Credit (ETIC) available for more older adults now
The American Rescue Plan (ARP) temporarily expanded the existing small federal earned income tax credit (EITC) for low-wage working adults without children at home.
They increased the maximum credit and broadened the eligibility to younger and older workers.
This newly eligible population consists of childless adults between the ages of 19-24 and over the age of 65.
The expansion goes into effect this year (for those with earnings in tax year 2021) and will benefit millions of adult workers.
The maximum EITC for this population nearly triples to roughly $1,500, and the income limit to qualify has increased to about $21,000 ($27,000 for couples married filing jointly).
Eligible workers must file their taxes to get the credit, even if they don’t owe federal income tax.
This expansion of the EITC may be helpful to many older adults who are working.
Please share this information with individuals who may be eligible and help them take steps to file their 2021 tax return:
- Some older adults may qualify for tax preparation assistance through programs such as the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, which offer free basic tax return preparation to qualified individuals.