EITC in 2021

Forum|Forum|5 years ago
June 3, 2021
6 replies
11 views

Quite a few of my single (no qualifying children) clients will be eligible for the 2021 EITC. Does anyone know what earned income produces the maximum credit of $1502?

ProSeries Professional

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Best answer by TaxGuyBill

$9,820 to $11,610 is the peak range for a single person with no kids.

Just-Lisa-Now-

Intuit Community Champion

I doubt anyone has this memorized, especially for 2021.

You'd need to pull up the EITC charts on the IRS website, just like anyone else.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

TaxGuyBillAnswer

$9,820 to $11,610 is the peak range for a single person with no kids.

G

GretaAuthor

Level 7

Thank you! I really searched and could not find this info. I'm a bit curious how you found it, but ever so grateful!

T

TaxGuyBill

It's a bunch of gibberish, but here is the new section of the law:

‘‘(3) INCREASE IN CREDIT AND PHASEOUT PERCENTAGES.—The table contained in subsection (b)(1) shall be applied by substituting ‘15.3’ for ‘7.65’ each place it appears therein.

‘‘(4) INCREASE IN EARNED INCOME AND PHASEOUT AMOUNTS.—
‘‘(A) IN GENERAL.—The table contained in
subsection (b)(2)(A) shall be applied—
‘‘(i) by substituting ‘$9,820’ for ‘$4,220’, and
‘‘(ii) by substituting ‘$11,610’ for ‘$5,280’.

In a nutshell, you get a 15.3% credit if your income is up to $9820, it stays at that amount until $11,610, then it starts phasing down after that.

It is fairly simple calculation for a single person with no kids (well, after you decipher what the legal gibberish means), but the numbers/calculations aren't quite as easy with kids.

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