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—meaning you can receive money back even if you owe no tax. The amount you receive ranges from a few hundred dollars to several thousand, depending on your household situation. For 2024, the maximum credit ranges from $600 for workers with no children to $3,995 for families with three or more children.
The credit phases in as your income rises, reaches a maximum at a certain income level, then phases out as you earn more. This means two people with the same number of children might receive different amounts based on how much they earned during the year. The IRS publishes updated tables each year, and the amounts change slightly to account for inflation.
Key Takeaways
- The maximum EITC for 2024 is $600 with no children, $1,711 with one child, $2,771 with two children, and $3,995 with three or more children.
- Your credit amount depends on your earned income during the year—it increases as you earn more, peaks at a specific income level, then decreases as you earn above that threshold.
- The credit is refundable, so you can receive the full amount even if you owe zero federal income tax.
- Income limits vary by filing status and number of children, and the IRS updates all amounts annually for inflation.
How the credit amount changes with your income
The EITC works in three phases. In the first phase, called the "phase-in" period, your credit grows as your income increases. For example, if you have one child and earn $15,000, your credit will be smaller than if you earn $25,000. This phase rewards you for working and earning more.
Once you reach a certain income level, your credit stops growing and stays at its maximum. This is the "plateau" phase. The income level where this happens depends on your filing status and number of children. A single parent with one child reaches the maximum at a different income than a married couple filing jointly with two children.
After the plateau, the credit begins to decrease as your income rises further. This is the "phase-out" period. For every dollar you earn above the plateau income, your credit shrinks by a set percentage. Eventually, at a high enough income, your credit reaches zero and you no longer receive it.
Income limits and credit amounts for 2024
| Filing Status & Children | Maximum Credit | Income Limit (Phase-Out Ends) |
|---|---|---|
| Single, no children | $600 | $17,450 |
| Single, one child | $1,711 | $46,560 |
| Single, two children | $2,771 | $46,560 |
| Single, three or more children | $3,995 | $46,560 |
| Married filing jointly, no children | $600 | $23,200 |
| Married filing jointly, one child | $1,711 | $52,918 |
| Married filing jointly, two children | $2,771 | $52,918 |
| Married filing jointly, three or more children | $3,995 | $52,918 |
These numbers are for the 2024 tax year and will change for 2025. The IRS adjusts all amounts annually. If your income falls below the phase-out limit shown in the table, you may receive some credit. If your income exceeds the limit, you receive no credit that year.
The definition of "children" for EITC purposes includes biological children, stepchildren, foster children, and siblings you support, provided they meet age and residency rules. A child must be under 17 at the end of the tax year to count toward the credit.
Why the credit amount varies year to year
The IRS adjusts EITC amounts each January to reflect inflation. If inflation is high, the maximum credit and income limits both increase. If inflation is low, the adjustments are smaller. This means the credit you received last year may not be exactly the same as the credit you receive this year, even if your income and family situation are identical.
Congress can also change the EITC through new tax laws. These changes are less frequent than annual inflation adjustments, but they do happen. For example, the American Rescue Plan temporarily increased the credit for 2021, and those increases expired after that year.
How to find your exact credit amount
The IRS publishes an EITC table each year in Publication 596, which shows the exact credit for different income ranges and family situations. You can read this publication from IRS.gov. If your income falls between two amounts in the table, you use the lower income figure to find your credit.
Most tax software automatically calculates your EITC based on the information you enter. If you file by hand or use a free filing service, you can look up your income in the IRS table and read across to find your credit amount. The calculation is straightforward once you know your filing status, number of may have access to children, and total earned income for the year.
What counts as earned income for the credit
The EITC is based on earned income, which means wages, salaries, tips, and self-employment income. It does not include investment income, Social Security, unemployment benefits, or child support. If you are self-employed, your earned income is your net profit after business expenses.
If you have both a job and self-employment income, you add them together to find your total earned income. This total is what determines your credit amount. If you earned nothing during the year, you cannot receive the EITC, even if you have children.
Frequently Asked Questions
Can I get the EITC if I earned less than the income limit?
Yes. As long as you earned some income during the year and meet the other requirements, you may receive the credit. The lower your income, the smaller your credit will be during the phase-in period. Once you reach the plateau income, your credit stays at its maximum until you begin to phase out.
What if my income changes during the year?
Your EITC is based on your total earned income for the entire year. If you earned $30,000 in the first half of the year and lost your job, your credit is calculated on $30,000, not on what you earned before the job loss. Report your actual year-end income on your tax return.
Is the EITC the same as the child tax credit?
No. The EITC and the child tax credit are two separate credits. The EITC is based on your earned income and is refundable. The child tax credit is based on having a may have access to child and has different income limits and maximum amounts. You may be able to claim both if you meet the rules for each.
Do I have to claim the credit on my tax return?
Yes. The IRS does not automatically send you the credit—you must claim it on your tax return. If you do not file a return, you will not receive the credit. If you earned very little and normally would not file, you may still want to file to claim the EITC and receive a refund.
What happens if I claim the credit and my income was higher than I thought?
If you claimed the credit but your actual income was above the phase-out limit, the IRS will ask you to repay part or all of the credit when you file your return or during an audit. This is why it is important to report your actual year-end income accurately.