Why don't i qualify for the earned income tax credit when biden signed the American rescue plan act that made people 19 and older that make 21,000 or less eligible?

[h-weaver15]

I only made 19,000 and I'm 25.

[Bsch4477]

If you are single with no children you earned too much to qualify. Age 25 is okay for EIC in 2020. It is lowered to 19 in 2021. Check this table. 

https://www.irs.gov/instructions/i1040tt#idm139919135296592

[h-weaver15]

https://www.cbpp.org/research/federal-tax/house-covid-relief-bill-includes-critical-expansions-of-ch...

[Critter-3]

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.

 

[helpingmetaxes]

I'm a 22 year old full time college student who made $7200 in 2021.  I didn't live at home in 2021, am filing my own return, and my parents aren't claiming me as a dependent.  I am NOT considered a specified student on my return?  Thank you.  

[LenaH]

As stated in the above post by @Critter-3, if you are a specified student, the minimum age is 24 for 2021. The age is 19 for individuals that are not full-time students. 

@helpingmetaxes

[helpingmetaxes]

A specified student is not the same as a student defined earlier in the interview.
Thank you.  What's confusing me is when I click on the tax software EIC help for a specified student.  I get the below.  As a full time student I would answer both "yes" which means I am a specified student.  Thanks and sorry for all the questions.

You're a specified student if, during at least 5 calendar months of the year, both of the following are
true:
• You were enrolled in a program that leads to a degree, certificate, or other recognized
educational credential
• You carried at least one-half the normal workload for your course of study
For purposes of determining whether you were enrolled during at least 5 calendar months, count any
month during which you were enrolled for at least part of the month. The 5 months don't need to be
consecutive.

[TiffV]

I've helped former homeless youth file taxes, they are 18+ made at least 1.00 in 2021 but the eitc question never comes up. Why aren't they getting the 1502.00? They did not make more than 21k, they are not students... when did they have to be homeless? For how long?  And how do we claim this? I work at a supportive housing apartment.. its non a halfway house... but the address should be sufficient proof... 

[Critter-3]

You can get to the Earned Income Credit Section by following the steps below:

1. Open your return.
2. Search for EIC with the magnifying glass tool at the top of the page.
3. Follow the on-screen instructions. 

To qualify for and claim the Earned Income Credit you must:

• Have earned income; and
• Have been a U.S. citizen or resident alien for the entire tax year; and
• Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
• Not have investment income exceeding $10,000; and
• Not be filing a Form 2555 or 2555-EZ; and
• File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

• $21,430 if you're not claiming a qualifying child ($27,380 if filing jointly);
• $42,158 if you're claiming 1 qualifying child ($48,108 if filing jointly);
• $47,915 if you're claiming 2 qualifying children ($53,865 if filing jointly);
• $51,464 if you're claiming 3+ qualifying children ($57,414 if filing jointly).

One more thing—if you're not claiming a qualifying child:

You (and your jointly filing spouse) can't be claimed as a qualifying child or dependent on anyone else's return, and

• You must be at least 18 if you are a qualified former foster youth or a qualified homeless youth, regardless of whether or not you are a specified student
• You must be at least age 19 if you aren't a specified student, qualified former foster youth, or qualified homeless youth
• You must be at least age 24 if you are a specified student, unless you are a qualified former foster youth, or qualified homeless youth

FROM THE IRS PUB 596 :  https://www.irs.gov/publications/p596

Qualified former foster youth.

 

You are a qualified former foster youth if (1) on or after the date you attained age 14, you were in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under part B (related to child welfare agencies) or part E (related to federal payments of monthly payments for eligible children) of title IV of the Social Security Act (without regard to whether federal assistance was provided to you under such part E), and (2) you consent for entities who administer a plan under part B or part E of title IV of the Social Security Act to disclose information related to your status as a qualified former foster youth.

If you qualify as a former foster youth and satisfy all the other requirements for claiming the EIC, check the box on Form 1040 or 1040-SR, line 27a..

Qualified homeless youth.

 

You are a qualified homeless youth if you certify that you are an unaccompanied child or youth who is homeless or who is at risk of homelessness, and are self-supporting.

To certify that you are a qualified homeless youth and that you satisfy all the other requirements for claiming the EIC, check the box on Form 1040 or 1040-SR, line 27a.

IN THE TT PROGRAM YOU MUST ANSWER CERTAIN QUALIFYING QUESTIONS IN THE MY INFO SECTION AND THEN COMPLETE THE EIC SECTION LATER.