EITC CHANGES

[Lee B]

"Age of taxpayers without qualifying children: The special rules that changed the age requirements for taxpayers without qualifying children have expired and don't apply to 2022 returns. For 2022, taxpayers without qualifying children must be at least age 25 and under 65 at the end of the year to be eligible to claim the EITC. On top of that, the provisions lowering the minimum age for qualified former foster youth and qualified homeless youth have expired and don't apply to 2022.

Maximum credit amount declined for taxpayers without qualifying children: The maximum amount of the credit for taxpayers without qualifying children was significantly reduced to $560 for 2022 (down from a temporary expansion to $1,502 for 2021). The maximum credit amount for those with three or more qualifying children is $6,935 for 2022, a slight uptick from 2021.

Maximum AGI amounts significantly reduced for taxpayers without qualifying children: For taxpayers without any qualifying children who file as single, head of household, or as a qualifying surviving spouse, their AGI must be less than $16,480 (down from a temporary expansion to $21,430 for 2021). For taxpayers without any qualifying children and with married filing jointly filing status, their AGI amount must now be less than $22,610 (down from a temporary expansion to $27,380 for 2021).

Maximum amount of investment income: The max amount of investment income allowable to still qualify for the credit slightly increases for 2022 to $10,300.

No election to choose prior-year earned income: Unlike the past few years, taxpayers can't elect to use a prior year's earned income amount to compute the amount of the credit.

Married filers not filing jointly: Thanks to a permanent tax relief provision in ARPA, taxpayers who are married but separated from their spouses may be eligible for the EITC without having to file a joint tax return with their spouse. ARPA expanded the rules by allowing certain married taxpayers filing separately to claim EITC only if they didn't live with their spouse during the last six months of the year, or if they have a separation agreement or decree; and lived with their qualifying child or children for more than one-half of the year.

Qualifying children without Social Security numbers: Another permanent ARPA change enables taxpayers whose qualifying children don't meet the Social Security number requirement to claim the EITC as if they were a taxpayer without qualifying children."

[mcb39]

Wasn't that nice of them to take that away from the Seniors who are working to supplement their Social Security?  That was one of the nicest perks about last year.