According to the American Rescue Plan signed in on March 11, 2021, the size of the earned-income-credit will increase for childless households. The maximum credit amount for childless people increases to $1,502. The age range has also been expanded so that people can begin to take the credit at age 19, rather than 25, and the upper age limit of age 65 has been eliminated. For single filers, the phaseout percentage and amounts have also increased.
For more information, contact Kristen Woodall at 770-287-7800 or kwoodall@rushtonandcompany.com. Stay tuned for more tax tips or follow them on our social media accounts every #TaxTipTuesday!