Effects of the Expansion of the Earned Income Tax Credit for Childless Young Adults on Material Well-Being

National Tax Journal

In 2021, the US Congress temporarily expanded the earned income tax credit (EITC) for workers without qualifying children (the childless EITC) to mitigate the COVID-19 pandemic's economic effects. The reform tripled the maximum benefit and, for the first time, lowered the minimum age of eligibility from 25 to 19. Using data from the Household Pulse Survey and a difference-in-differences design, this study examines the effects of the reform on material hardship among low-income young adults ages 19–24. We find that the expanded childless EITC primarily reduced housing hardship, with less robust evidence of reductions in food and expense hardship.