EITC Overhaul: Childless Workers Get Doubled Tax Credit, Lowered Age Limit to 19 Starting 2026

The “Tax Cut for Workers Act of 2025” is a major shakeup of the Earned Income Tax Credit (EITC), specifically targeting low-wage workers who don’t have dependent children. Think of the EITC as a refundable tax break for working people—it reduces your tax bill, and if the credit is larger than what you owe, you get the difference back as a refund. This bill doesn’t just tweak the system; it permanently expands access and doubles the money for childless workers, starting with the 2026 tax year (SEC. 2).

Doubling the Credit and Removing the Age Ceiling

If you’re a single worker without kids, the changes here are significant. Currently, the EITC for this group is pretty small, and it phases out quickly. This bill permanently cranks up the percentage used to calculate the credit from 7.65% to 15.3%, essentially doubling the potential payout. Crucially, it also eliminates the previous maximum age limit of 65, meaning older workers who are still earning a wage can claim the credit (SEC. 2).

To make sure this boosted credit actually helps more people, the bill significantly raises the income limits. The income threshold where the credit starts to phase out jumps from about $5,280 to $11,610. This means if you’re working a part-time job or earning close to minimum wage, you’ll see a much larger benefit, and you can earn more before losing the credit entirely. For example, a young worker earning $10,000 a year would see a much higher credit under the new 15.3% calculation and higher income thresholds (SEC. 2).

Lowering the Bar for Younger Workers

Right now, if you don’t have kids, you generally have to be 25 to claim the EITC. This bill drops the minimum age to 19 for most workers. If you are a student, the minimum age is 24, which is a key detail for those juggling school and work. However, the bill carves out an important exception for vulnerable young adults: qualified former foster youth and qualified homeless youth can claim the credit starting at age 18. This is a direct financial lifeline aimed at helping young people transition out of unstable situations and into the workforce (SEC. 2).

Income Protection During Tough Times

One of the smartest features in this bill is a provision allowing workers to use their prior year’s income if their current year's income is lower. Say you’re an electrician who got laid off for six months in 2026, dropping your income significantly. If you earned more in 2025, you can elect to use that higher 2025 income to calculate your 2026 EITC, ensuring you get a better tax refund when you need it most. This acts as a financial stabilizer during periods of unemployment or reduced hours. The IRS will treat any mistakes on this calculation as simple math errors, making the process less intimidating for taxpayers (SEC. 4).

Making EITC Permanent for U.S. Territories

Finally, the bill addresses an issue of stability for U.S. territories like Puerto Rico and American Samoa. Previously, EITC rules applying to these territories were set to expire at the end of 2025. This legislation strikes those expiration dates, ensuring that the rules regarding the application of the EITC in these areas continue indefinitely. This removes uncertainty and provides long-term parity for residents of these territories (SEC. 3).