2021 Extended Earned Income Tax Credit (Video Blog)


Extra help for families when filing 2021 tax return

Important Enhancements to the Earned Income Tax Credit for 2021

The earned income tax credit (EITC) is regarded as one of the government’s largest antipoverty programs and helps millions of American families every year.
You are urged to check to see if you qualify for this very beneficial refundable credit.

Significant enhancements have been added, and even if you have not qualified in the past, you may qualify this year.
People who normally do not file a tax return may also qualify for this credit.
To be eligible you must have earned income.
Earned income is generally income from working, such as wages and self-employment income.

Recent Changes to Qualifications

The age threshold to claim EITC is 19, with certain exceptions and with no cap on age.
In the past, the EITC was only available to people ages 25 to 64.

Those with an investment income of more than $10,000 (up from $3,650 in 2020) do not qualify.

Childless workers and couples can qualify for the 2021 EITC if their earned income is below $21,430 ($27,380 for joint filers). The maximum credit for a taxpayer without a qualifying child is $1,502, up from $538 on 2020 returns.

For those with children, the amount of credit depends upon the number of children, up to three or more.

The credit does phase out for higher-income taxpayers.

Qualifying children must be under age 19 or be a full-time student under age 24 at the end of the tax year.

The age test does not apply to a child who is permanently and totally disabled.
The EITC can be worth as much as $6,728 for a family with three or more children.

If the credit is larger than the tax owed, the difference is refundable.

Don’t miss out on this valuable tax credit.

There are other qualifications; call this office for additional information.

For more information, call Alex Franch at 781.789.7200. WorthTax has locations in Norwell, Dedham, and Weymouth, Massachussetts.
Alex Franch

Mr. Franch is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Mr. Franch is an Enrolled Agent and has eight years of tax preparation experience. He has been serving individuals, families, and businesses for several years with tax and financial planning strategies and is a junior partner with the firm. Mr. Franch is licensed by the Financial Industry Regulatory Authority (FINRA) with a Series 6, 63, 65, and 7, and by the Commonwealth of Massachusetts Division of Insurance.