ATLANTA — Changes in the Earned Income Tax Credit mean more people are eligible than in previous years, and experts state it’s possible many taxpayers are leaving money on the table.
What was initially a financial boost for working families with children is now offering more money than ever even if you don’t have kids.
The Earned Income Tax payoff is a tax break or possibly even a refund of up to $6,700 for those who qualify. It all depends on how much you earned in 2021 and the size of your family.
Lance Palmer with UGA’s College of Family and Consumer Sciences told 11Alive the biggest change this year will impact low to moderate income earners with no children.
“An individual with no children, and this is unique to 2021, the maximum benefit is $1,502,” said Palmer. “Last year $504 was the maximum benefit. So, a huge expansion.”
The IRS caps how much you can make and still qualify. A couple with three children qualifies for the biggest break of $6,728 as long as they earned less than $57,414 in 2021.
Another change allows workers under the age of 25 and as young as 19 to qualify.
However, Palmer said you must file a tax return to take advantage.
“Based on the IRS estimates, about 20% of taxpayers who are eligible to receive the EITC don't file a tax return and claim that refund,” he explained.
Prior to 2022, any worker 65 or older could not qualify. Now, there is no maximum age.