Legislation introduced in Congress recently would eliminate the age cap for older workers to qualify for the earned-income tax credit.
U.S. Reps. Mike Carey (R-OH) and Danny Davis (D-IL) said their legislation the “EITC for Older Workers Act would allow senior citizens to take advantage of the EITC. Currently, the credit can only be claimed by workers between 25 and 65 years old.
“America’s workforce has changed since the EITC was established in 1975. Many Americans are working longer, and a rising retirement age should be reflected in the program,” Carey said. “Certain Americans should not be prevented from accessing critical tax provisions because of their age. I proud to lead this bipartisan, common-sense effort to give them a boost in Ohio and across the country.”
Carey said nearly 16 percent of Ohioans over the age of 65 remain in the workforce. A recent study found that nearly half of the workers born between 1946 and 1960 expect to either not retire, or to work beyond age 70. The EITC is a refundable tax credit for low- to moderate-income workers. The credit allows eligible taxpayers to reduce the taxes they owe based on several factors, including how much they owe, how many children they have and what their marital status is.
The bill is supported by AARP, the Critical Labor Coalition, and Golden State Opportunity.
“The EITC helps millions of people earn their way out of poverty, encouraging them to find and keep a job,” Bill Sweeney, AARP Senior Vice President for Government Affairs, said. “Turning age 65 should not result in a sudden tax hike for lower-income workers. Indeed, older workers need to keep more of what they earn to support their families and build greater financial security as they age. Workers age 65-plus represent the fastest-growing segment of the labor force. Removing this arbitrary age cap ensures that those who are eligible and choose to work do not have their taxes raised just because they turn 65.”