Expanded Earned Income Tax Credit
This tax credit was created to help low and moderate-income Americans by reducing the taxable income and wage. According to the American Rescue Plan Act, the EITC for workers without children is raised from $530 to $1,500 while the income limit for credit goes up from $16,000 to $21,000.
The relief plan also gives the opportunity to receive credit to workers ages 19 to 24 and ages 65 and older, eliminating the age limit for older workers. Another change is that you will not receive a lower amount if you’ve earned less in 2021 because of the pandemic.
