The Earned Income Credit was greatly expanded, particularly for people without children in 2021. One or more of these may have prevented your friend from claiming it in 2020:
- In 2020, people earning over $15,820 were not eligible for it, but in 2021 single taxpayers with no dependents could get the earned income credit as long as their gross income was under $21,430.
- You could not claim the Earned Income Credit in 2020 if you had more than $3,650 in investment income. That limit has been raised to $10,000 in 2021.
- In 2020, only people aged 25-65 could claim the Earned Income Credit. Now, anyone who is not a dependent over the age of 19 is eligible.
TurboTax has supplied a complete rundown of the 2021 Earned Income Credit in this article.
