I personally don't like Joe Biden at all, but coming to the 2022 tax season, there are favorable changes to Earned Income Tax Credit (EITC) that many families will be happy to see on their 2021 tax return. Specially, for the first time, EITC has been expanded to taxpayers who are younger than 25 or older than 65. The maximum EITC for filers with no qualifying children has been generously increased to $1,502, up from $538 in 2020.
Starting in 2021, the amount limitation of investment income that taxpayers can receive and still be eligible for the EITC increases to $10,000. This is a dramatic change. In 2020, the limit was $3,650. After 2021, the $10,000 limit remains effective and is indexed for inflation.
Married but separated spouses can now choose to be treated as not married for EITC purposes. To qualify, the spouse claiming the credit cannot file jointly with the other spouse, must have a qualifying child living with them for more than half the year. (For other detail please contact us)
Single people and couples with children who have Social Security numbers can claim the credit, even if their children do not have SSNs. In this instance, they would get the smaller credit available to childless workers. In the past, these filers didn't qualify for the credit.
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