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Earned Income Tax Credit (EITC)

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a tax credit available to low- and moderate-income taxpayers who work and earn wages or self-employment income. The credit is designed to help reduce poverty by supplementing the wages of low-income workers and encouraging work.

To be eligible for the EITC, you must have earned income from employment or self-employment and meet certain other requirements. These requirements include having a valid Social Security number, being a U.S. citizen or resident alien for the entire tax year, and not being a qualifying child of another taxpayer.

The amount of the EITC depends on your earned income, filing status, and the number of qualifying children you have. The credit can be worth up to $6,660 for taxpayers with three or more qualifying children, up to $5,728 for taxpayers with two qualifying children, up to $3,584 for taxpayers with one qualifying child, and up to $662 for taxpayers with no qualifying children.

To claim the EITC, you must file a tax return and include Form 1040 or Form 1040-SR, Schedule EIC (Earned Income Credit), and any other required forms and schedules. You can claim the EITC even if you do not owe any tax or are not required to file a tax return. If you are eligible for the EITC and do not claim it, you may be missing out on valuable tax savings.

If you think you may be eligible for the EITC, it's a good idea to consult with a tax professional or use the IRS's EITC Assistant tool to find out if you qualify and to calculate your potential credit. You can also visit the IRS website for more information about the EITC, including the latest eligibility requirements and how to claim the credit.

AGI limits posted on IRS Website for EITC

AGI limits posted on IRS Website for EITC

Earned income does not include:

  • Pay you got for work when you were an inmate in a penal institution
  • Interest and dividends
  • Pensions or annuities
  • Social Security
  • Unemployment benefits
  • Alimony
  • Child support


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