The IRS has announced changes that can really help low and middle-income workers. It involves changes to the Earned Income Tax Credit. If you know anyone including seniors who struggled to work in 2021 and had low income these changes can put money in their pockets.
This is from an IRS news release that summarizes some key changes:
“For 2021 only, more childless workers and couples can qualify for the EITC, and the maximum credit is nearly tripled for these taxpayers. For the first time, the credit is now available to both younger workers and senior citizens.”
The IRS news release continues:
“For 2021, the EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. The maximum EITC for filers with no qualifying children is $1,502, up from $538 in 2020. There are also special exceptions for people who are 18 years old and were formerly in foster care or are experiencing homelessness. Full-time students under age 24 don’t qualify. There is no upper age limit for claiming the credit if taxpayers have earned income. In the past, the EITC for those with no dependents was only available to people ages 25 to 64.”
That completes the excerpt from the IRS release.
Remember Legal Tax Defense assists taxpayers with IRS and other local tax issues. They do offer a free consultation. Call now for your free consultation.
Always consult with tax professionals when you have tax issues. Always consult with professionals who are in good standing with the IRS. You don’t want to fall victim to tax scams such as having your refund stolen.
Disclaimer: Alan Mendelson is a well-known TV consumer news reporter who reports on tax issues. You should seek professional advice if you have tax questions or issues.