EIC: New Law Makes Major Changes
The earned income credit (EIC) has been around for years. But it’s never been worth as much as it will be for 2021 under the new American Rescue Plan Act (ARPA). Some favorable changes are only for the 2021 tax year, while others are permanent.
Overview of the American Rescue Plan Act
The President signed the American Rescue Plan Act (ARPA), also known as the COVID-19 Stimulus Package, into law on Thursday, March 11th. The new law will provide roughly $1.9 trillion in much-needed financial relief to individuals, businesses, not-for-profit organizations, and state and local governments during the pandemic.