Temporary changes to the EITC for 2021 only
For 2021 only, the ARPA makes the following taxpayer-friendly changes to the EITC rules.
More generous rules for taxpayers with no children
For 2021, the age restriction for taxpayers with no qualified children is significantly liberalized. For 2021, you generally must be at least age 19 as of 12/31/21 (versus age 25 under the “regular” rules), and there’s no upper age limit (versus an upper age limit of 64 under the “regular” rules).
If you are a specified student, the minimum age is 24 for 2021.
If you are a qualified former foster youth or a qualified homeless youth, the minimum age is 18 for 2021.
Under the “regular” rules, the maximum tentative EITC for 2021 for a taxpayer with no qualifying children was scheduled to be only $543. Thanks to the ARPA, the maximum 2021 EITC is upped to $1,502. That increase is because the credit percentage is doubled to 15.3%, the earned income base is increased, and the AGI phase-out threshold is increased.
