- The threshold for disqualified investment income has been raised to $10,000 permanently.
- For 2021, the applicable minimum age for individuals without children has been decreased to 19. However, there are two exceptions: the minimum age for students is 24, and the minimum age for qualified former foster youth or homeless youth is 18. The maximum age has been eliminated.
- The credit’s phaseout percentage is increased to 15.3%, and the phaseout amounts are increased.
- The credit will be allowed for married filing separately spouses if they meet certain requirements relating to children.
- Temporarily, 2019 earned income is allowed to be used instead of 2021 earned income when figuring the amount of the credit when preparing 2021 tax returns if 2021 earned income was less than 2019 earned income.