American Rescue Plan Expands EITC to Young Adults Ages 18-24

The Earned Income Tax Credit (EITC) is one of the largest cash-back credits made available by the federal government to filers with low to moderate incomes. Prior to 2021, filers with no qualifying children were only eligible for the EITC if they fell between the ages of 25-64. But now, thanks to the American Rescue Plan, this credit is now temporarily available to more people.

The EITC is one of the largest cash-back credits made available by the federal government to filers with low to moderate incomes. Prior to 2021, filers with no qualifying children were only eligible for the EITC if they were between the ages of 25-64. But now, thanks to the American Rescue Plan, this credit is now temporarily available to more people.
For the 2021 tax year, young adults ages 18-24 are now temporarily eligible for the EITC. The American Rescue Plan has helped make the following temporary changes:

• Lowering the age of eligibility for the EITC from 25 to 19 (age 18 for homeless youth and for those transitioning out of foster care)
• Increasing the maximum EITC refund from $540 to about $1,500
• Raising the income cap for eligibility from $16,000 to $21,000

To claim the EITC without a qualifying child, you must:

• Meet the EITC basic qualifying rules
• Have resided in the United States for more than half the tax year
  • The United States includes the 50 states, the District of Columbia and U.S. military bases. It does not include U.S. possessions such as Guam, the Virgin Islands or Puerto Rico
• Not be claimed as a qualifying child on anyone else’s tax return
• If you are a specified student (other than a qualified former foster youth or a qualified homeless youth), you need to be at least age 24.

Still confused about whether you qualify?

Visit the IRS website and use the EITC assistant to determine whether you qualify. Read more about the EITC expansion here.

Don’t qualify?

Please remember that filers in California might still be eligible for the California Earned Income Tax Credit (CalEITC), which does include filers who are at least 18 years old or who have a qualifying child. Read more about the CalEITC here.