The Earned Income Tax Credit (EITC) is a valuable tax benefit designed to assist low- to moderate-income workers and families by providing a tax break. If you qualify, the EITC can reduce the amount of taxes you owe, potentially lowering your overall tax liability. In some cases, if the credit exceeds your tax liability, you may receive the difference as a refund, providing an important financial boost. The credit amount depends on several factors, including your income, filing status, and number of qualifying children. It's an essential benefit that helps make taxes more manageable and provides extra financial relief for eligible families and individuals.
How to qualify for the earned income credit
To qualify for the EIC, you must have made at least $1 of earned income. There are also other rules. Here are the big ones:
Investment income cap: Your investment income must be $11,600 or less in 2024 (taxes filed in 2025). This limit rises to $11,950 for investment income earned in 2025 (taxes filed in 2026).
Age: If you're claiming the EITC without any qualifying children, you must be at least 25 years old but not older than 65. If you're claiming jointly without a child, only one spouse needs to meet the age requirement.
Foreign income: You must not have to file Form 2555, Foreign Earned Income.
Special rules for separated couples: You can qualify for the EITC if you’re separated but still married. To do so, you can’t file a joint tax return and your child must live with you for more than half the year. You also must not have lived with your spouse during the last six months, or you must have a separation agreement or decree.
There are special earned income credit rules for members of the military and the clergy, as well as for people who have disability income or who have children with disabilities
Earned income tax credit 2024
Number of children | Maximum earned income tax credit | Max income: Single or head of household filers | Max income: Married joint filers |
0 | $632 | $18,591 | $25,511 |
1 | $4,213 | $49,084 | $56,004 |
2 | $6,960 | $55,768 | $62,688 |
3 or more | $7,830 | $59,899 | $66,819 |
Earned income tax credit 2025
Number of children | Maximum earned income tax credit | Max income: Single or head of household filers | Max income: Married joint filers |
0 | $649 | $19,104 | $26,214 |
1 | $4,328 | $50,434 | $57,554 |
2 | $7,152 | $57,310 | $64,430 |
3 or more | $8,046 | $61,555 | $68,675 |