The Earned Income Tax Credit (EITC) is a tax credit designed to help people with low to moderate incomes. Specifically intended to benefit Working parents who fall within these income ranges.
The EITC is not applied to your tax return automatically. Instead, you must take appropriate steps to claim it on your tax return yourself. The maximum EITC for tax year 2025 (filed in 2026) is $8,046.
Taxpayers have up to three years to claim the EITC. So, if you’re just learning about it and think you might have been eligible in previous years, there may still be time to claim it in the previous year. In this article, we’ll find out what Earned Income Tax Credit It is and how to qualify for it.
What is the Earned Income Tax Credit?
Unlike many other tax breaks, the EITC is Refundable Tax credit. This means you always receive the full value of your balance, even if you exceed your tax liability. If your income tax bill is less than the EITC dollar amount, you’ll get a refund from the IRS.
For example, imagine someone qualifies for the Earned Income Tax Credit of $6,604 and owes $4,000 in income taxes. together non refundable Tax credit, the maximum benefit would be $4,000, because non-refundable credits are unable to reduce a taxpayer’s tax liability below $0. But as a refundable credit, the EITC will be able to provide the full $6,604 interest by sending the taxpayer a refund check for $2,604.
EITC is a Federalism Tax credit only. This means it will not apply to state, city or country taxes. In some cases, it may also not cover Social Security taxes. It is only intended to reduce federal income taxes.
However, some countries, in particular caThey also offer their own state versions of the EITC.
Related to: Tax credits vs. Tax deductions
How much can you get for 2025?
The EITC ranges from $649 to $8,046 for tax year 2025 (which you file in early 2026). The number varies depending on income, filing status, and whether or not you have qualifying children.
Using the table below, you can determine how much your EITC may depend on your AGI.
Earnings of a single person or head of a family | |||
|---|---|---|---|
For example, if your income is $40,000, and you are single and have one qualifying child, your maximum EITC is $4.3128
Keep in mind that some of the above income levels are slightly above your income level Poverty levels Listed by the Ministry of Health. For a single person, the poverty level is an income of $15,650. This is just below the maximum income of $19,104 for a single filer with no children.
Related to: When can I expect my tax refund?
Who is eligible for the Earned Income Tax Credit?
The Earned Income Tax Credit is available to both workers and the self-employed. Below is a list of criteria a person must meet to be eligible for ETIC.
- He must have earned an income. This is income from some form of employment (including self-employment). Dividends or investment income, pensions, and unemployment benefits are not qualifying forms of income.
- A valid Social Security number issued to you and any participating spouses or children.
- Investment income of $11,950 or less in 2025.
- The status of filing jointly as married, head of household, eligible widow or widower, or single.
It is not necessary to have children for ETIC. But there is Certain standards To claim the earned income tax credit without qualifying children. These requirements also apply to any spouse with whom you file a joint return.
- You meet all the basic rules of the EITC, and
- Have your primary home in the United States for more than half of the tax year, and
- You cannot be claimed as a dependent or qualifying child on the return of anyone else, and
- Be at least 25 years old but under 65 years old at the end of the tax year, usually December 31.
If you are claiming the EITC with a child, whether you are single or with a spouse filing a joint return, the child must meet all qualifying rules. Since rehabilitation of the child is more complicated, it is better to do so Use the IRS EITC Assistant.
Who is not eligible?
In addition to the income levels listed above, other criteria may make a person ineligible for the EITC:
Final thoughts
The Earned Income Tax Credit can be a big financial boost for those with low to moderate income. Yes, there are a number of qualification criteria. But most people who meet the income limits should qualify.
Keep in mind that you must take active steps to claim Earned Income Tax (EITC) on your tax return since it is not automatically claimed on your behalf. But even if you forget (or didn’t know you had it), you can come back up to three years to claim the EITC.
Once you’re ready to claim your credit, make sure you don’t overpay for tax filing services. Check out our favorite tax software to find affordable and capable options.
