Former Foster Youth and Homeless Youth May Be Eligible to Claim The Earned Income Tax Credit (Eitc)

In the latest NTA BLOG, National Taxpayer Advocate Erin M. Collins explains how qualified former foster youth and qualified homeless youth may now be eligible to claim the Earned Income Tax Credit (EITC).

The changes are a provision of the American Rescue Plan Act of 2021 and are only in effect for tax year 2001. The National Foster Youth Institute notes that many children who were in foster care instantly become homeless when they turn 18 and “age out” of the foster care system.

“When foster youth ‘age out’ of the system, they are legally emancipated and are no longer eligible to receive state assistance with housing, food, and medical care under the foster care system,” says Collins.

The NTA has recommended in her 2022 Purple Book of legislative recommendation that Congress permanently expand the age eligibility for EITC to qualified former foster youth or qualified homeless youth that are 18 years old.

Additionally, the NTA warns about potential issues qualified youth may face when claiming the credit, such as a former foster parent claiming the EITC or other tax benefits and cautions about filing paper returns.

Read the full NTA Blog for more important details.

The Taxpayer Advocate Service invites you to share this vital tax information with your audience.

Author: Wallace