Workers who don’t have kids may be eligible for up to $1,502 dollars of stimulus support in 2022.
The changes made to the earned income tax credit under the American Rescue Plan may give people more cash next tax season.
The credit for workers previously maxed out at $543, but for 2021 the amount will rise to $1,502.
There is no age limit so younger people may claim it for the first time.
Before, rules stated someone with no children needed to be at least 25 but not older than 64.
Working families with children may also get more depending on their number of children.
How does Earned Income Tax Credit work?
The credit is equal to a fixed percentage of a person’s income from one dollar until it maxes out.
Related: Stimulus check: Are you one of the thousands of Americans eligible for a surprise tax refund?
One it maxes out, that is what’s paid until earning hit a higher level, which then drops it down by the dollar. That decline continues until there is none left.
EITC will either offset owed taxes or result in a refund.
Working people with no children must make $21,430 individually to qualify. Married couples must make up to $27,380.
Previously, individuals had a threshold of $15,820 and married couples had a threshold of $21,710.
If taxes are not owed and there are no children, the biggest refund will be $1,502.
To get EITC with children, working families have a threshold of $42,158 for one child and will get up to $3,618.
Household with two children must make a maximum of $47,915 per year and could get $5,980 in credits.
Three child families can make up to $51,464 as a single taxpayer and get $6,728.
To claim EITC, you must file a tax return. It’s given in a lump sum if nothing else impacts it or you don’t pay taxes.
The credit is for 2021 only and you will receive it in 2022 with your refund.
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