The Earned Income Tax Credit is money the government gives back to working people with lower incomes

The Earned Income Tax Credit (EITC) is a refund you may receive from the federal government if you work and earn below a certain income level. Unlike most tax deductions, which only reduce the tax you owe, the EITC can give you money back even if you paid in nothing — or more money back than you paid in. The amount depends on how much you earned, whether you have children, and your filing status.

You do not have to do anything special to receive it beyond filing your tax return. The IRS calculates whether you may have access to based on the income and family information you report. If you are may be able to access, the credit appears as a refund on your tax return.

Key Takeaways

  • The EITC is a refundable tax credit, meaning you can receive money back even if you owe no taxes.
  • Your income must fall below a threshold that varies by filing status and number of children — for 2024, the maximum is roughly $63,398 for married couples filing jointly with three or more children.
  • You must have earned income from work to receive the EITC; investment income and unemployment benefits do not count.
  • The credit is larger if you have children, and the IRS uses your tax return to determine the exact amount you receive.

How much the EITC is worth and who receives it

The size of your EITC depends on three things: how much you earned, how many children you have (if any), and your filing status. A single person with no children can receive up to $600 in 2024. A married couple filing jointly with one child can receive up to $3,733. A married couple with three or more children can receive up to $3,995.

These amounts change slightly each year because the IRS adjusts them for inflation. The income thresholds also shift annually. The IRS publishes the current year's limits on its website and in the tax forms you receive.

You must have earned income — wages from a job, self-employment income, or similar work-related pay. Income from investments, rental property, unemployment benefits, or Social Security does not count toward the EITC, even if you report it on your tax return.

Income limits and filing status matter

The EITC phases out as your income rises. This means the credit gets smaller the more you earn, and it disappears entirely once you pass a certain threshold. That threshold is different depending on whether you file as single, head of household, or married filing jointly.

For 2024, a single filer with no children loses the credit entirely at an income of about $17,600. A head of household with one child loses it at about $46,560. A married couple filing jointly with three or more children loses it at about $63,398. These numbers increase slightly each year.

If you are married, you must file jointly to receive the EITC. If you are single or the head of a household, you file under those statuses instead.

Children and the EITC

Having children increases the amount of EITC you can receive, and it also raises the income threshold at which the credit disappears. The IRS counts a child as someone under 17 at the end of the tax year who is your son, daughter, stepchild, foster child, or sibling (or the child of a sibling) and who lived with you for more than half the year.

The child must also have a valid Social Security number and be a U.S. citizen, national, or resident alien. You cannot claim the same child on multiple tax returns, and the child cannot claim themselves as a dependent on their own return.

The credit is larger for each additional child you claim, up to a maximum. The IRS instructions for Form 1040 and Schedule EIC (the form you use to claim the credit) list the exact amounts for the current year.

How to report the EITC on your tax return

You report the EITC by filing Form 1040 (the main federal income tax form) along with Schedule EIC if you have may have access to children. If you have no children, you still file Form 1040 and check the box for the EITC, or your tax software will do this automatically.

If you use tax software or a tax preparer, they will ask you questions about your income, filing status, and children. The software or preparer will calculate your EITC and include it on your return. If you file by hand, you use the IRS tables in the instructions to find your credit amount based on your income and family situation.

You must file a tax return to receive the EITC, even if your income is so low that you would not normally have to file. The IRS does not send you the credit automatically — you have to claim it on your return.

What happens after you file

Once you file your return, the IRS processes it and calculates your EITC. If you are owed a refund (including the EITC), the IRS sends it to you by direct deposit, check, or prepaid debit card, depending on how you requested it. This usually takes two to three weeks if you file electronically and provide direct deposit information.

The IRS may verify your information before sending your refund. If they have questions about your income, children, or filing status, they will contact you by mail. Keep copies of documents that prove your income (pay stubs, 1099 forms) and your children's Social Security numbers and birth dates in case the IRS asks.

If you received an EITC in a prior year and your income or family situation has changed, your credit amount may be different this year. The IRS recalculates it each year based on what you report.

The EITC and state taxes

Many states offer their own earned income tax credits in addition to the federal EITC. Some state credits are a percentage of the federal credit — for example, a state might give you 20 percent of your federal EITC as a state credit. Other states have their own separate credit with different income limits and amounts.

If your state has an EITC, you claim it on your state tax return using a similar process to the federal credit. Your tax software or preparer will include it if you live in a state that offers one. You can find out whether your state has an EITC by visiting your state's tax authority website or asking a tax preparer.

Frequently Asked Questions

Do I have to file a tax return to get the EITC?

Yes. The IRS does not send the EITC automatically. You must file Form 1040 and claim the credit, even if your income is below the filing requirement. If you earned any income at all, filing a return to claim the EITC is usually worth your time because the refund is often larger than what you paid in taxes.

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

Yes. Self-employment income counts as earned income for the EITC. You report it on Schedule C (Profit or Loss from Business) and then on Form 1040. The income limits and credit amounts are the same as for wage earners. You will also owe self-employment tax, but the EITC is calculated on your net self-employment income after business expenses.

What if my income is right at the limit?

If your income is at or slightly above the phase-out threshold, you may still receive a partial credit. The credit does not disappear all at once — it gets smaller as your income rises. Use the IRS tables in the Form 1040 instructions or tax software to calculate the exact amount based on your income.

Can I claim a child who does not live with me full-time?

No. The child must live with you for more than half the tax year. If you share custody, only the parent with whom the child lived for the longer period can claim the EITC for that child. Both parents cannot claim the same child on their returns.

What if the IRS says I received too much EITC?

The IRS may audit your return and determine that you received more credit than you were owed. If this happens, they will send you a notice explaining the error and how much you owe back. You can respond to the notice with documentation (pay stubs, birth certificates, proof of residence) to support your claim, or you can agree and arrange to repay the amount.