Millions of low-income Americans are eligible for a huge tax refund boost this year. Here’s how to get it
Low-earning Americans can get a large tax refund due to the American Rescue Plan
Millions of low-income Americans are eligible for a huge tax refund boost that could result in a nice tax refund check this spring.
What’s happening: Low-income Americans are eligible for the earned income tax credit, which is given to people with the lowest-paying jobs, according to Business Insider.
- The credit will be worth triple the amount this year for workers who do not have children, per CBS News.
- People can earn up to $1,500 through a tax credit.
- The Biden administration expanded the credit, raised income limits for the credit and expanded who can receive the credit in the American Rescue Plan, which offered relief during the COVID-19 pandemic, per Business Insider.
What they’re saying: “The American Rescue Plan allows anyone 19 and older, who’s not a full-time student (and) who has earnings, to claim the expanded EITC. It expanded both age and income eligibility and it made the credit larger,” Kris Cox, deputy director of federal tax policy at the liberal think tank Center on Budget and Policy Priorities, told CBS News.
Who qualifies?: So who qualifies for the earned income tax credit? Per the Internal Revenue Service, here are the basic requirements for the credit:
- You must have worked and earned under $57,414.
- You must have an investment income below $10,000 in 2021.
For 2021, the rules are slightly expanded. Per CBS News, here are some new factors to consider:
- Taxpayers without children who earned up to $21,430 from a job, side gig or self-employment can earn the tax credit.
- The tax credit applies to anyone who is 19 years old or older who meets the guidelines.
What’s next: The Biden administration has updated a child tax credit website to help new tax filers understand the benefits they could receive in their tax refunds.