Biden’s New Families Plan Would Make This Perk for Childless Workers Permanent

young dishwasher working at a restaurant kitchen.
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While much of the attention on President Joe Biden’s proposed $1.8 trillion American Families Plan has been focused on education, child care and paid family leave, it also includes some tax goodies that could put more money in your pocket.

See: Do You Support a Biden Tax Increase? Take Our Poll
Find: The Next Stimulus? Biden to Introduce $1.8 Trillion Family Relief Plan

One of the proposals is to make expansion of the Earned Income Tax Credit for childless workers permanent. This credit was boosted under last month’s American Rescue plan by nearly tripling the maximum credit and extending eligibility to more childless workers, CNN reported. In addition, the minimum age to claim the credit will be reduced to 19 from 25, and the upper age limit will be eliminated.

A White House fact sheet released on Wednesday said the expanded EITC benefited 17 million low-wage workers, many of whom are essential workers such as cashiers, cooks, delivery drivers, food preparation workers and child care providers. One of the examples provided on the fact sheet was that with the EITC expansion, a childless employee who works 30 hours a week at $9 an hour would have their credit increased to more than $1,100, helping pull them out of poverty.

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Democrats passed a one-year expansion of the Child Tax Credit as part of the March relief bill, WENY News reported. However, Biden will ask Congress to extend the enhancements through 2025 and make the credit refundable permanently as part of the American Families Plan. Republicans oppose the tax hikes that would pay for the plan. They and some Democrats also have concerns about funding another enormous stimulus, according to NPR.

See: House Bill Pushes to Make Child Tax Credit Permanent
Find: Biden’s American Rescue Plan Will Lower Taxes by an Average of $3,000

According to the IRS website, you are eligible to claim the EITC without a qualifying child if you meet each of the following requirements. You (and your spouse, if you file a joint tax return) must:

  • Meet the EITC basic qualifying rules
  • Have your main home in the United States for more than half the tax year, including all 50 states, the District of Columbia and U.S. military bases. It does not include U.S. territories such as Guam, the Virgin Islands or Puerto Rico
  • Not be claimed as a qualifying child on anyone else’s tax return
  • Meet age limit requirements

Those filing as married filing separately are not eligible for the EITC.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte MagazineStreet & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, will be published in 2021 by Atmosphere Press.

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