Question: Eli, age 67, had a small amount of W-2 wages in 2021, investment income below the threshold amount for claiming the earned income credit (EIC) and adjusted gross income (AGI) of $16,250. Therefore, he was eligible for the EIC in 2021. In 2022 he still had a part-time job at the local hardware store where he earned $11,250 and had investment income of $1,500, which resulted in an AGI of $12,750. Is Eli eligible to claim the EIC in 2022?
Answer: No. While Eli’s AGI was below the maximum amount of $16,480 for claiming the childless EIC in 2022 [Rev. Proc. 2021-45], he is above the age limit. The American Rescue Plan Act of 2021 removed the upper age limit for taxpayers claiming the EIC in 2021. Those age limits (taxpayers between the ages of 25-64) are back in place for 2022, making him ineligible.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.