Millions more people without children are now eligible for a tax credit that could save them thousands
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 rightThe Internal Revenue Service expanded the criteria to qualify for the Earned Income Tax Credit 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.
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 Bidenit 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.
."We urge people potentially eligible for this valuable credit to review the guidelines; many people each year overlook this and leave money on the table." The EITC has historically existed as a tax break for low- to moderate-income workers, with creditsbetween $560 and $6,935 for 2022. The exact amount someone receives will depend on their income and filing status.
The less one earns, the greater their EITC. Because it's a refundable tax credit, lower-income taxpayers who have little income-tax liability can receive the total amount of the credit as a tax refund anyway.
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