Earned Income Tax Credit – American Rescue Plan
This article organizes the original guidance on earned income tax credit – american rescue plan into clear sections for easier reading and reference.
Key Points
This section presents the original list items in a more scannable format.
- The threshold for disqualified investment income has been raised to $10,000 permanently.
- For 2021, the applicable minimum age for individuals without children has been decreased to 19. However, there are two exceptions: the minimum age for students is 24, and the minimum age for qualified former foster youth or homeless youth is 18. The maximum age has been eliminated.
- The credit’s phaseout percentage is increased to 15.3%, and the phaseout amounts are increased.
- The credit will be allowed for married filing separately spouses if they meet certain requirements relating to children.
- Temporarily, 2019 earned income is allowed to be used instead of 2021 earned income when figuring the amount of the credit when preparing 2021 tax returns if 2021 earned income was less than 2019 earned income.
Related Resources
These resources connect the article topic with related Bowers service pages and approved professional reading.
FAQ
The questions below summarize the main points already covered in the article.
What is the main focus of Earned Income Tax Credit – American Rescue Plan?
The article focuses on earned income tax credit – american rescue plan and organizes the original guidance into sections for easier review.
What topics does the article cover first?
The article begins with key points and then continues through the remaining points in the original post.
Does the post include action items or reminders?
Yes. The original post includes listed items that have been kept in list format for easier scanning.
Was the original post wording changed?
The revision keeps the author wording and updates the structure so the post is easier to read online.