Biden offers economic aid plan to young people without children
Young and childless workers will be able to receive financial aid this tax season thanks to President Joe Biden's plan to expand the earned income tax credit, as reported by Noticias Telemundo.
Who are the main beneficiaries of the financial aid?
People with lower incomes will be the main beneficiaries of the new measure promoted by Joe Biden. In this way, it is expected that the income of almost one million Hispanics in the United States will rise.
Previously, citizens between the ages of 19 and 24 without dependent children could not claim this credit, a benefit for low- and middle-income workers. But the Biden administration improved the credit for tax year 2021, which means more workers are entitled to higher amounts.
For the 37% of workers ages 19 to 24 who are now eligible to receive the credit, the expansion will mean an average increase of $820, according to a study by the Institute of Taxation and Economic Policy.
If an individual has no other tax liability, that money will be sent to them in their refund for the year.
Did the credits improve?
The American Rescue Plan approved last 2021 fulfilled the goal of expanding the current tax deduction for earned income, increasing the full benefit from 538 dollars to 1,502, and allowing workers from 19 to 24 years of age and those over 65 years of age without Dependent children claim relief.
It should be noted that previously, only workers with children could claim the credit, which left out some of the lowest-earning workers, as well as non-custodial parents, that is, those who have children who do not live with them. most of the time.
It also increased the income limits for claiming the full credit from $15,820 to $21,430 for single filers and from $21,710 to $27,380 for married filing jointly.
These changes mean that some five million young workers would regain access to the federal credit and receive an additional $4,000 billion in benefits in 2022. Overall, the change would help about 17 million people, according to a separate study by the Center on Budget and Policy. Priorities.
Miami Daily
Author: Emery Barreto 10:38 am