The Earned Income Tax Credit amount depends on your income, filing status, and number of children
The Earned Income Tax Credit (EITC) is a refundable tax credit that reduces what you owe to the IRS—or increases your refund if you owe nothing. The amount you receive is not a flat payment. Instead, it phases in as your income rises, reaches a maximum, then phases out as you earn more. For 2024, the maximum credit ranges from $600 for workers without children to $3,995 for those with three or more children.
The exact amount you receive depends on three things: your total income for the year, your filing status (single, married filing jointly, or head of household), and how many may have access to children you claim. The IRS publishes income limits and maximum credit amounts each year, and they change slightly to account for inflation.
Key Takeaways
- The maximum EITC for 2024 ranges from $600 with no children to $3,995 with three or more children, but you only receive the full amount if your income falls within a specific range.
- Your credit amount increases as your income rises up to a peak, then decreases as you earn more, so earning an extra dollar may reduce your credit by 21 cents.
- You claim the EITC on your tax return using IRS Form 1040 and Schedule EIC; the IRS calculates the exact amount based on the income and dependent information you provide.
- Income limits for 2024 vary by filing status and number of children, ranging from roughly $17,000 for single filers with no children to $63,398 for married filers with three or more children.
Maximum credit amounts for 2024 by family size
The IRS sets a different maximum credit for each household type. These maximums are the highest amount you can receive, but you only get the full amount if your income lands in the right range.
| Filing Status & Children | Maximum Credit (2024) | Income Limit (2024) |
|---|---|---|
| Single, no children | $600 | Up to $17,600 |
| Single, one child | $3,733 | Up to $46,560 |
| Single, two children | $6,164 | Up to $52,918 |
| Single, three or more children | $3,995 | Up to $52,918 |
| Married filing jointly, no children | $600 | Up to $23,573 |
| Married filing jointly, one child | $3,733 | Up to $52,918 |
| Married filing jointly, two children | $6,164 | Up to $59,276 |
| Married filing jointly, three or more children | $3,995 | Up to $63,398 |
These numbers change each year. The IRS publishes updated amounts in January, so if you are filing for a prior year, use that year's limits instead. You can find historical tables on the IRS website under "EITC Income Limits, Maximum Credit Amounts and Tax Law Updates."
How the credit phases in and out as your income changes
The EITC does not work like a straightforward on-off switch. Instead, it grows as you earn more money, peaks at a certain income level, then shrinks as you earn even more. This means your actual credit amount depends on exactly where your income falls within the range.
For example, a single parent with one child in 2024 sees the credit increase by 34 cents for every dollar earned, up to an income of about $18,000. At that point, the credit reaches its maximum of $3,733. From there, as income rises from $18,000 to $46,560, the credit stays at $3,733. Once income exceeds $46,560, the credit decreases by 16 cents for every dollar earned, until it reaches zero at $52,918.
This structure means that earning an extra dollar of income can sometimes reduce your credit, especially if you are in the "phase-out" range. That is why two workers with similar jobs might receive very different credit amounts—it depends on where each person's total income lands in the phase-in, plateau, or phase-out zone.
How to calculate your credit amount when filing taxes
You do not calculate the EITC yourself. Instead, you report your income and dependent information on your tax return, and the IRS calculates the exact credit amount using the current year's tables.
When you file, you use IRS Form 1040 (the main individual income tax form) and attach Schedule EIC if you have a may have access to child. On Schedule EIC, you list each child's name, date of birth, and Social Security number. The IRS then uses that information along with your total income to determine your credit.
If you use tax software or work with a tax preparer, they will enter your information and the software will calculate the credit automatically. If you file by hand, you use the IRS's EITC tables (found in the Form 1040 instructions) to look up your credit based on your income and filing status.
What counts as income for EITC purposes
The IRS counts most types of income toward the EITC limit. This includes wages from a job, self-employment income, interest, dividends, and rental income. However, some types of income do not count, such as Social Security benefits, Supplemental Security Income (SSI), or certain veteran benefits.
If you have both earned income and unearned income (like interest or dividends), you must add them together to determine whether you stay under the income limit. This is important because even a small amount of unearned income can push you over the threshold and reduce or eliminate your credit.
Income limits are higher for married filers and those with children
The IRS sets different income limits depending on your filing status and number of children. Married couples filing jointly have higher limits than single filers, and the limits increase with each child you claim.
For 2024, a single person with no children can earn up to $17,600 and still receive the credit. A married couple with three children can earn up to $63,398. These limits exist because the credit is designed to support working people with lower incomes, and the IRS recognizes that a family of four needs more income to meet basic expenses than a single person does.
If your income is close to the limit, even a small raise or bonus could push you over and eliminate your credit entirely. Conversely, if you are just under the limit, you may receive the full maximum credit for your situation.
The credit is refundable, so you may get money back even if you owe no tax
The EITC is refundable, which means the IRS can pay you money even if you owe zero income tax. This is different from a regular tax credit, which can only reduce what you owe.
For example, if you earned $20,000 and owe no federal income tax, but you are may have access to to a $3,000 EITC, the IRS will send you a $3,000 refund. This makes the credit especially valuable for low-income workers who pay little or no income tax during the year.
Frequently Asked Questions
Can I get the EITC if I am self-employed?
Yes. Self-employment income counts toward the EITC, and you can receive the credit if your net self-employment income is within the limit for your filing status and number of children. You report self-employment income on Schedule C and include it in your total income when determining your credit amount.
What if I have a child but do not claim them as a dependent?
You cannot receive the EITC for a child unless you claim that child as a dependent on your tax return. The child must also have a valid Social Security number and be a U.S. citizen, national, or resident alien. If someone else claims the child (such as a grandparent), you cannot claim the credit for that child.
Does the EITC change from year to year?
Yes. The maximum credit amounts and income limits adjust each January to account for inflation. The IRS publishes the new amounts in the Form 1040 instructions and on its website. If you are filing for a prior year, use that year's limits, not the current year's.
What happens if I earn a little more money and lose some of my credit?
In the phase-out range, earning an extra dollar reduces your credit by 16 to 21 cents (depending on how many children you have). This means a raise might reduce your refund, but you still come out ahead because you keep the extra income. For example, earning $1,000 more might reduce your credit by $160, but you still gain $840 in net income.