The Increased Antipoverty Effects of the Expanded Childless Earned Income Tax Credit in 2021
The 2021 American Rescue Plan made important changes to policies that provide income support to individuals and families experiencing a period of poverty or low income. One such policy was the portion of the Earned Income Tax Credit (EITC) available for childless workers. Historically, the childless portion of the EITC was a small credit. The legislation expanded eligibility and increased the maximum credit to just over $1,500, approximately tripling the childless EITC for 2021.
This fact sheet compares the poverty rates of childless adults in a period before the expansion: 2019, with poverty rates in the year of the expansion: 2021. We look at the population of young adults aged 18-34 and the subset aged 18-24. Additional results are provided by race and ethnicity and education level. We find that for all childless adults, but especially for young adults, the temporary expansion of the childless EITC enhanced its antipoverty effects.
Suggested Citation:
Wimer, Christopher and Megan A. Curran. 2023. “The increased antipoverty effects of the expanded childless Earned Income Tax Credit in 2021.” Poverty and Social Policy Fact Sheet. Center on Poverty and Social Policy, Columbia University. Access at: povertycenter.columbia.edu/publication/childless-earned-income-tax-credit-in-2021