This act permanently extends and significantly expands the Earned Income Tax Credit for workers without qualifying children, lowers the minimum claiming age, removes the maximum age limit, increases credit amounts, and allows taxpayers to elect to use higher prior-year earned income for calculation.
Dwight Evans
Representative
PA-3
The Tax Cut for Workers Act of 2025 significantly expands the Earned Income Tax Credit (EITC) for workers without qualifying children by permanently lowering the minimum age, eliminating the maximum age, and substantially increasing the credit amount. It also allows taxpayers to elect to use higher prior-year earned income when calculating the current year's credit. Furthermore, the bill removes expiration dates for applying EITC rules in certain U.S. territories.
EITC Overhaul: Minimum Age Drops to 19, Credit Doubles for Workers Without Kids
The newly proposed Tax Cut for Workers Act of 2025 is a major shakeup for the Earned Income Tax Credit (EITC), specifically targeting low-to-moderate-income workers who don’t have dependent children. If you’re a single adult or part of a couple working without kids, this bill makes the EITC significantly more valuable and easier to get, starting with tax years after December 31, 2025. The core of the change is making the temporary expansions permanent, effectively doubling the credit rate and raising the income limits so more people qualify for a bigger tax break.
The Age Game: Lower Floor, No Ceiling
One of the biggest hurdles for young workers claiming the EITC has always been the age requirement. Under this bill, the minimum age to claim the credit drops from 25 down to 19 for most people. That’s a huge win for those just starting out—think of the recent high school grad working their first full-time job in construction or retail. They can now claim this credit years earlier. Even better, the bill completely removes the upper age limit, meaning workers over 65 who are still earning income can continue to claim the EITC, a benefit previously unavailable to them (Sec. 2).
There’s a specific carve-out for students, though. If you are a student, your minimum age for claiming the credit is set at 24. This creates a bit of a disparity: a 20-year-old working full-time can claim the credit, but a 20-year-old working part-time while taking college classes cannot, unless they are a qualified former foster youth or homeless youth. For those vulnerable populations, the minimum age drops even lower, to 18, providing a crucial early financial boost as they transition to independence (Sec. 2).
Bigger Checks and a Safety Net for Income Drops
The financial impact of this bill is substantial. Currently, the EITC for childless workers uses a 7.65% rate. This bill doubles that rate to 15.3% and significantly raises the income thresholds for both earned income and phaseout levels. For example, the lower dollar amount used in the calculation jumps from $4,220 up to $9,820, meaning the credit starts building faster and lasts longer (Sec. 2). This means more money in the pockets of low-wage earners, making the EITC a much more powerful tool for reducing poverty among this group.
Perhaps the most practical change for today’s volatile job market is the new “prior year earned income” election (Sec. 4). If your income drops this year compared to last year—maybe you lost a job, had reduced hours, or dealt with an illness—you can elect to use your higher earned income from the previous tax year to calculate your current EITC. Say you made $30,000 last year but only $15,000 this year. Since the EITC maxes out at a certain income level and then phases out, using your higher prior income could mean you qualify for a much larger credit this year, providing a critical financial cushion during a rough patch. This option kicks in for tax years starting after 2025 and applies to both single and joint filers.