Saturday, February 12, 2022

Earned Income Credit for Seniors?

 

William Delaney, EA
Westwood, MA
SENIOR CITIZENS (OVER AGE 64) ARE NOT ELIGIBLE FOR THE EARNED INCOME CREDIT (at least they were not for 2020).  HAS ANYTHING HAPPENED TO CHANGE THAT? 

 

Is my software going crazy---it is allowing an EIC (when the income qualifies) for my 69 year old taxpayer who works part-time at the supermarket, bagging groceries!  This can’t be right—he didn’t get it last year!  So, your Editor looked it up in The Tax Book and, sure enough, there it is on page 11-10:

 

NEW FOR 2021 – Individuals over age 65.  For 2021, this age limit is eliminated.

 

That’s close, but not quite right.  The American Rescue Plan Act of 2021 removed the  age 64 limitation, but only for tax year 2021.  See Subtitle F, Part 3, §9621(a)(n)(2) of the Act.  Don’t look a gift horse in the mouth---go for it!

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