Three Important Changes to the Earned Income Credit
Three important changes to the EIC guidelines make this credit a potentially exciting option for more tax payers.
First, for 2021, childless workers and couples, younger workers and senior citizens now qualify for the EIC.
Filers who are at least 19 years old, have no qualifying children and have earned income below $21,430 or $27,380 (MFJ) may be eligible for the credit.
Second, the credit amount has increased for this filing group.
The current maximum credit of $1,502 nearly triples the former credit amount of $538.
Although certain unhoused individuals, or those formerly in foster care, are also now potentially eligible, full-time students under age 24 are not.
Third, the credit can be based on earned income from 2019 if it is higher than in 2021.
Note that unemployment income is not considered earned income for this purpose.
Use the IRS earned income and earned income tax credit tables to see if your 2019 earned income might mean a higher credit for you.