New resources and information about the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) on now available on the HUD Exchange (www.hudexchange.info).
The 2021 American Rescue Plan (ARP) temporarily increased the CTC from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six. It also raised the age limit for CTC eligibility from 16 to 17. The 2021 ARP also expanded the EITC to include more workers without children as well as older workers (age 65+), temporarily raised the maximum credit for individuals without dependents from approximately $540 to $1,500, and increased the income cap to qualify for individuals without dependents from approximately $16,000 to $21,000. These income levels constitute a large percentage of residents in affordable housing properties.
The CTC and EITC are not considered income for federal affordable housing programs. Receiving these tax credits will not impact anyone’s eligibility for federal benefits – including federal housing benefits. The federal government along with hundreds of non-profit organizations, state and local governments, and members of Congress are engaged in an all-out push to make sure every eligible American receives the EITC and CTC.
Managers of federal affordable housing projects, such as public housing, Section 8, Section 515, HOME, and LIHTC should not be counting the CTC or EITC as income for project eligibility purposes.