For tax year 2021, the eligibility for single taxpayers with no dependents has been widened for more people to qualify. Additionally, the IRS is allowing taxpayers to use their 2019 adjusted gross income if it is higher than your 2021 AGI.
Am I Eligible for the EITC?
If you qualify for the Earned Income Tax Credit, you can reduce your taxes and increase your tax refund. The EITC allows you to keep more of your hard-earned money. The credit is based on your total earned income or your total Adjusted Gross Income (AGI), whichever is higher. For example, if you have unemployment compensation, it is not considered earned income, but will be included in your AGI since unemployment is taxable income. The income limits get adjusted every year, so even if you did not qualify for the EITC in the past, you might qualify now and be able to claim it this year on your return.
Maximum Credit Amounts
The maximum amount of credit you can claim:
- No qualifying children: $1,502
- 1 qualifying child: $3,618
- 2 qualifying children: $5,980
- 3 or more qualifying children: $6,728
* Taxpayers claiming the EITC who file Married Filing Separately must meet the eligibility requirements under the special rule in the American Rescue Plan Act (ARPA) of 2021.
Let the experts at Meadville Tax Service prepare your taxes and discuss all your options to maximize your refund.
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