President Barack Obama proposed an expansion of the Earned Income Tax Credit (EITC) in his budget last week. The amendment would double the maximum credit for taxpayers with no qualifying children, raise the qualifying income amount, and lower the eligible age from 25 to 21 years old.
The recommendation targets low-income students and encourages more single adults to enter the workforce. An approximate 5.8 million people would be newly qualified for the EITC, and 7.7 million people would benefit from the increased maximum credit. The proposal intends to help those caught in poverty on a larger scale than current legislation.
Obama also supports a bill for minimum wage to increase from $7.25 to $10.10, in tandem with the EITC expansion. Neither one is likely to pass within the next year, but the discussion of poverty as a legislative issue may bring action into the foreseeable future.
The maximum EITC for 2013 taxes:
- $6,044 with three or more qualifying children
- $5,372 with two qualifying children
- $3,250 with one qualifying child
- $487 with no qualifying children
To see if you qualify for the EITC, visit:
Read more about it here.