WORKERS WITHOUT CHILDREN will be eligible for up to $1,502 in stimulus funding next year. The cash boost will come as a welcome surprise if you aren’t aware of the earned income tax credit (EITC) and the changes under the American Rescue Plan.
The maximum credit for non-parental workers was previously $543, but it has been increased to $1,502 for 2021 only.
It is now available to younger workers for the first time, and there is no age limit.
According to the “regular” EITC rules, someone without any qualifying children must be at least 25 years old but no more than 64 years old to qualify for the credits.
hard working households, on the other side, may be able to receive much more, based on their number of kids. We’ll go over everything you need to know below.
How Much You Could Earn from EITC
The earned income tax credit is available to low-income working families and low-income workers without children.
From the first dollar until the credit reaches its maximum, the credit is equal to a fixed percentage of income.
The maximum credit is paid until earnings reach a certain threshold, after which it decreases with each additional dollar until there is no credit left.
Is if EITC is valuable more than amount you owe the IRS, you should take it. It will be used to offset any taxes owed, or you will receive a refund if it is worth more than what you owe the IRS.
Employees Without Children
For 2021, the earnings thresholds for childless workers have been increased, rising from $15,820 to $21,430 for individuals filing separately.
While husbands and wives can now earn a combined income of up to $27,380 per year, up from $21,710 previously.
Workers without children can get up to $1,502 in cash if they don’t owe any federal taxes.
Employees With Children
The amount of EITC that parents with eligible dependents can receive is determined by the number of children they have.
If a family with one child files as a single taxpayer, they can receive up to $3,618 per year and earn up to $42,158 per year.
Others with 2 kids, on the other side, can earn up to $47,915 a year receive up to $5,980 in credit facilities.
Mom and dad with three children are eligible for up to $6,728 if they earn less than $51,464 as single tax paying citizens.
Subscribe to BigBlueUnbaised for more updates.