This bill eliminates the upper age limit for claiming the Earned Income Tax Credit (EITC), making it available to all eligible workers regardless of age after 2025.
Mike Carey
Representative
OH-15
The EITC for Older Workers Act of 2025 eliminates the upper age limit for claiming the Earned Income Tax Credit (EITC). This change removes the current restriction preventing individuals aged 65 and older from claiming the credit. The provision will take effect for tax years beginning after December 31, 2025.
Older Workers Get Tax Break: EITC Age Cap Removed Starting 2026
The new EITC for Older Workers Act of 2025 is short, sweet, and focuses on one major change to the Earned Income Tax Credit (EITC). Starting with tax year 2026 (meaning when you file in early 2027), the bill completely removes the upper age limit for claiming the EITC.
Currently, if you hit age 65, you age out of claiming this credit, even if you’re still working and earning a low-to-moderate income. This legislation strikes that specific restriction from the Internal Revenue Code (Section 2), meaning older workers who meet all the other EITC requirements—like income limits and having earned income—will now be eligible.
The Cap Comes Off: Why This Matters for the 65+
Think of the EITC as one of the most effective anti-poverty tools in the tax code. It's a refundable credit, meaning if the credit is larger than the tax you owe, you get the difference back as a refund. For a lot of people, this credit is a crucial boost to their annual budget.
Up until now, the rule has essentially penalized low-wage workers for continuing to work past 65. For example, if you’re 66 and working part-time at a grocery store or driving a school bus to supplement your Social Security, you were previously locked out of the EITC. This bill changes that. It recognizes that many older Americans are staying in the workforce out of necessity, not just choice, and need the same financial support as younger low-income workers.
Real-World Impact: More Money in the Pocket
This is a straight-up benefit expansion with no new costs or burdens for the taxpayer—it simply expands who can access an existing benefit. For a 68-year-old worker bringing home $15,000 a year from a service job, this change means they could qualify for a significant tax refund they wouldn't have received before.
It’s a straightforward fix to what many viewed as an arbitrary age barrier. Since the change doesn't kick in until the 2026 tax year, older workers who plan to stay in the labor force should keep this in mind as they plan their finances over the next couple of years.