How the Earned Income Tax Credit Works and Who Can Claim It

The Earned Income Tax Credit is based on how much you earned, not your savings or assets

The Earned Income Tax Credit (EITC) is a tax benefit for people who work but earn below certain income limits. The IRS gives you money back on your tax return—sometimes more than you paid in taxes—if your income and family situation match the program's rules. You claim it when you file your taxes, either on your own or with help from a tax preparer.

The amount you receive depends on three things: how much money you earned that year, whether you have children, and your filing status. A single person with no children gets a smaller credit than a parent with two children at the same income level. The credit phases out as your income rises, meaning you get less money back the more you earn, until you reach an income ceiling where you no longer may have access to.

Key Takeaways

You must have earned income from a job or self-employment in the tax year you are claiming the credit for—investment income and unemployment benefits do not count.
Your total income must fall below a specific limit that changes each year and depends on whether you have children and your filing status.
You claim the EITC on your tax return using IRS Form 1040 and Schedule EIC, or through tax software that walks you through the questions.
The credit can result in a refund larger than the taxes you paid, which the IRS sends to you by direct deposit or check after processing your return.
If you have a may have access to child, you may also claim the Additional Child Tax Credit on the same return, which works alongside the EITC.

Income limits change each year and depend on your family structure

The IRS sets new income limits every year based on inflation. For the 2023 tax year (filed in 2024), a single person with no children could earn up to roughly $16,810 and still claim the credit. A married couple filing jointly with no children had a limit around $22,610. These numbers are different if you have children—one child raised the limit to about $43,000 for single filers, two children to about $49,000, and three or more children to about $53,000.

The limits for married couples filing jointly are higher than for single filers at every income level. If you are married but filing separately, you cannot claim the EITC at all. The income limits shift each tax year, so you should check the current year's limits on the IRS website or ask a tax preparer before filing to know whether you fall within the range.

You must have earned income from work or self-employment

The EITC requires that you earned money through a job or by running your own business. W-2 wages from an employer count. Self-employment income counts. Gig work and contract income count if you report it on your taxes. However, income from unemployment benefits, Social Security, disability payments, investment returns, rental income, or child support does not count toward the EITC.

If you had no earned income during the tax year, you cannot claim the credit, even if your total household income is low. This is why the credit is called the Earned Income Tax Credit—earning money through work is the core requirement. If you are self-employed, you will need to report your net profit on Schedule C and use that figure to determine your EITC amount.

Having a may have access to child increases the credit amount significantly

A may have access to child for the EITC must be your biological child, adopted child, stepchild, or a relative you care for (such as a grandchild or sibling). The child must be under age 17 at the end of the tax year, live with you for more than half the year, and be a U.S. citizen, national, or resident alien. The child cannot have more than $4,700 in earned income during the year (this limit changes annually).

Each may have access to child increases your credit. With one child, your credit is larger than with no children. With two children, it is larger still. With three or more children, the credit reaches its maximum amount. If you have a child who does not meet these rules—for example, a child who is 18 or older, or who lived with you for less than half the year—that child does not count toward your EITC, though you may be able to claim them as a dependent for other tax purposes.

File your taxes to claim the credit on your return

You claim the EITC by filing a federal income tax return, even if you would not normally have to file. You can file on your own using tax software (such as IRS Free File, which is free for people below certain income levels), or you can work with a tax preparer or volunteer tax information program. When you file, you will answer questions about your income, filing status, and dependents. The tax software or preparer will calculate your EITC amount based on your answers.

On your return, the EITC appears on Form 1040 (the main tax form) and is supported by Schedule EIC, which lists your may have access to children. If you use tax software, the program fills out these forms for you based on the information you enter. Once you file, the IRS processes your return and sends your refund—which includes your EITC—by direct deposit or check, usually within a few weeks to a few months depending on how you file and whether the IRS needs to verify any information.

The IRS may ask for proof of your income and your child's identity

When you file your return, the IRS compares the information you provide against records from your employer (your W-2 forms), the Social Security Administration, and other government databases. If something does not match—for example, if your reported income is very different from what your employer reported, or if your child's Social Security number does not match IRS records—the IRS may send you a letter asking for proof.

Common documents the IRS requests include your W-2 forms, pay stubs, birth certificates for your children, and proof that your child lived with you (such as school records or a lease with your name on it). If the IRS asks for documents, respond within the important date stated in the letter. If you do not respond or cannot provide the documents, the IRS may reduce or deny your EITC. Keeping copies of your W-2s, pay stubs, and your children's birth certificates makes it easier to respond quickly if the IRS reaches out.

You can receive an advance payment of part of your credit

If you have a may have access to child, you may be able to receive part of your EITC in advance payments throughout the year, rather than waiting until you file your taxes. This is called the Advance Child Tax Credit, and it is separate from but related to the EITC. To receive advance payments, you must register with the IRS using their online portal and update your information if your income or family situation changes during the year.

The advance payments are based on an estimate of what you will receive when you file. If your actual income turns out to be higher than you estimated, you may owe some of the advance money back when you file your return. If your income is lower, you will receive the difference as a larger refund. Many people skip the advance payments and straightforward claim the full credit when they file their return, which is also a valid choice.

Frequently Asked Questions

Can I claim the EITC if I am married but file my taxes separately?

No. If you are married, you must file a joint return to claim the EITC. If you file separately, neither spouse can claim the credit, even if one spouse has very low income. This rule applies even if you and your spouse live apart.

What if my child turned 17 during the tax year?

Your child counts as a may have access to child for the EITC only if they are under age 17 at the end of the tax year. If your child turned 17 on December 31 of the tax year, they do not count. If they turned 17 on any earlier date, they do not count either. However, you may be able to claim them as a dependent for other tax purposes.

Do I have to file taxes if my only income is from the EITC?

You cannot receive the EITC without filing a tax return—the credit is claimed on your return. However, if your earned income is very low, you may not be required to file. But filing is worth doing anyway because the EITC often results in a refund larger than any taxes you owe, so you come out ahead.

What happens if I claim a child who is not actually my dependent?

The IRS verifies the Social Security numbers and relationships of children you claim. If you claim a child who is not your may have access to child, the IRS will deny the EITC and may assess penalties and interest. In serious cases, this can be treated as tax fraud. Only claim children who truly meet the rules.

Can I claim the EITC if I am self-employed?

Yes. Self-employed people can claim the EITC based on their net profit (income minus business expenses) reported on Schedule C. You must still meet all other rules: your net profit must fall below the income limit, and if you claim a child, the child must meet the may have access to rules. Self-employed filers should keep detailed records of income and expenses to support their EITC claim.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.