What Is the EITC?
The Earned Income Tax Credit is a refundable federal tax credit for workers with low to moderate income. “Refundable” means if the credit exceeds your tax liability, you receive the difference as a cash refund.
In 2024, the maximum credit ranges from $632 (no children) to $7,830 (3+ children).
2025 EITC Income Limits
| Filing Status | No Children | 1 Child | 2 Children | 3+ Children |
|---|---|---|---|---|
| Single | $18,591 | $49,084 | $55,768 | $59,899 |
| Married | $25,511 | $56,004 | $62,688 | $66,819 |
2025 Maximum Credit Amounts
| Children | Maximum EITC |
|---|---|
| 0 | $632 |
| 1 | $4,213 |
| 2 | $6,960 |
| 3 or more | $7,830 |
Qualifying Rules
Earned income requirement: You must have wages, salary, or self-employment income. Investment income must be under $11,600.
Age: Must be 25–64 (no children); any age with qualifying children.
Qualifying child rules: Child must be under 19 (24 if a full-time student), live with you for more than half the year, and not file a joint return.
Filing status: Cannot use Married Filing Separately.
SSN: You and any qualifying children must have Social Security Numbers.
How to Claim
Report your income accurately on Form 1040. The IRS automatically calculates the EITC based on your income and family size. You can also use Schedule EIC if you have qualifying children.
Common Mistakes
- Not claiming it: An estimated 20% of eligible workers miss the EITC
- Income too high: Above the phase-out range, the credit phases out to zero
- Investment income: Even $1 over the $11,600 limit disqualifies you