Earned income tax credit

What It Means

The earned income tax credit (EITC) is a federal credit for people who work and have low to moderate income. Its size depends on your earned income, your filing statusFiling statusThe category you file your federal return under, one of five the IRS sets, which decides your tax rates and standard deduction and depends on your marital status at year end. See more and how many qualifying children you claim. It's refundable, so if the credit is larger than the tax you owe, the IRS pays you the difference.

How People Say It

• "We qualified for the EITC this year, so our refund was bigger."
• "Do I still get the earned income credit with no kids?"
• "The tax preparer asked if anyone else could claim my son."

The Breakdown

What the rule says. To claim the EITC you need earned income, investment income under the limit ($11,950 or less for 2025), a valid Social Security number by your return's due date including extensions, and U.S. citizen or resident alien status for the whole year. You can't file Form 2555 for foreign earned income.

2025 amounts and limits, from the IRS tables

Without a qualifying childTax dependentA qualifying child or qualifying relative you can claim on your federal tax return, which can open credits and a better filing status if every IRS test is met. See more. You must be at least 25 and under 65, along with the other rules.

Looking ahead. The IRS's 2026 inflationInflationA general rise in the prices of goods and services over time, so the same amount of money buys less than it did before. See more release puts the maximum credit for three or more children at $8,231 for tax year 2026, which you'd claim on the return filed in 2027.

Documents to have ready

1. W-2s and records of any self-employment income.
2. Social Security numbers for you, your spouse and each child you claim.
3. Records showing where each child lived during the year.

Good to Know

The figures come from the IRS EITC tables and Publication 596 for 2025, checked October 1, 2026. Each year's limits differ, so match the table to the tax year on your return. The IRS page "Qualifying child rules" explains who counts as a qualifying child for this credit. Because it's refundable, the EITC can produce a refund even when you owe no tax. Ask a tax professional to check a tricky case before you file.

Related Terms and Categories

• Child tax credit

  A federal tax credit of up to $2,200 per qualifying child under 17 on 2025 returns, partly refundable, with the full amount at incomes up to $200,000 ($400,000 joint).

• Tax dependent

  A qualifying child or qualifying relative you can claim on your federal tax return, which can open credits and a better filing status if every IRS test is met.

• Filing status

  The category you file your federal return under, one of five the IRS sets, which decides your tax rates and standard deduction and depends on your marital status at year end.

• Tax credit vs deduction

  A deduction lowers the income your tax is figured on, while a credit cuts the tax itself dollar for dollar, so a credit of the same size is usually worth more.

• Gross income

  The full amount you earn before taxes and other deductions come out. For federal taxes, it's all income you receive unless a law exempts it.

• Household income

  The combined income of everyone in a household over a year; the Census Bureau counts every member age 15 and older, before taxes.

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