No More 'Too Old' for EITC? Bill Aims to Scrap Age Cap for Workers in 2026

A new piece of legislation, the 'EITC for Older Workers Act of 2025,' is looking to make a simple but significant tweak to tax rules: it wants to get rid of the upper age limit for claiming the Earned Income Tax Credit (EITC). If this bill becomes law, the change would amend section 32(c)(1)(A)(ii) of the Internal Revenue Code and would apply to taxable years starting after December 31, 2025. In plain English, this means workers 65 and older who meet the income and other criteria could qualify for this tax credit when they file their 2026 taxes.

Unlocking EITC for Experienced Hands

So, what’s the practical effect of ditching this age cap? Currently, many folks over 65 who are still working and earning modest incomes are shut out from the Earned Income Tax Credit simply because of their age. This bill aims to fix that. The EITC itself is a valuable, refundable tax credit. That 'refundable' part is key – it means if the credit is more than you owe in taxes, you get the difference back as cash. Think of a 68-year-old working part-time at the local library; if their income fits the EITC guidelines, this change, targeting section 32(c)(1)(A)(ii) of the tax code, could mean a welcome financial boost starting with their 2026 tax return, filed in early 2027.

Beyond the Bottom Line: A Nod to Modern Work Realities

This proposed change is more than just a line item in the tax code; it’s an acknowledgment of how work is evolving. With more people extending their careers, whether by choice or economic necessity, this bill ensures an important support like the EITC keeps pace. It’s about providing a bit more financial breathing room for older Americans who continue to contribute to the workforce and aims to make an existing program more inclusive for a growing demographic that's still very much in the game.