How has the Earned Income Tax Credit (EITC) changed this year?

In 2021, Congress made significant improvements to the Earned Income Tax Credit (EITC) for people without children. These changes apply to the 2021 tax year, meaning they apply to the tax return you file in 2022. First, the credit is now bigger (it used to be worth only up to about $500, it is now worth up to about $1,500). Second, the eligibility rules were loosened. Now, anyone older than 19, if they are not a full time student, can be eligible for the EITC. Former foster youth or youth experiencing homelessness are eligible at age 18.

There is no change to the EITC for people with children, which is still worth up to about $3,600 with one child, $6,000 with two children, or $6,700 with three children, depending on income.

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