The Earned Income Tax Credit is a tax reduction for working people with low to moderate income
The Earned Income Tax Credit (EITC) is a federal tax credit that reduces the amount of tax you owe, or increases your refund, if you work and earn below certain income limits. Unlike a deduction, which lowers the income the government taxes, a credit directly reduces your tax bill dollar for dollar. If the credit is larger than the tax you owe, the IRS sends you the difference as a refund — this is called a refundable credit.
The credit is designed to support workers in jobs that pay less, and it phases in as your income rises, reaches a maximum amount, then phases out at higher income levels. The exact amount you can receive depends on your filing status, how much you earned, whether you have children, and whether you care for dependents.
You claim the EITC on your federal tax return using IRS Form 1040 and Schedule EIC (or Schedule 8812 if you have may have access to children). The IRS does not automatically send you the credit — you must report it when you file, or you will miss it that year.
Key Takeaways
- The EITC reduces your federal tax bill or increases your refund if you work and earn below the income limit for your situation.
- You must file a federal tax return to claim the credit, even if you do not normally have to file.
- The credit amount depends on your income, filing status, and whether you have may have access to children living with you.
- The IRS offers free tax preparation help through VITA (Volunteer Income Tax information) sites if you earn under a certain amount.
- You claim the credit on your return using Schedule EIC or Schedule 8812, not by contacting the IRS before you file.
Income limits and credit amounts for 2024
The EITC has different income thresholds and maximum credit amounts depending on your filing status and number of may have access to children. For the 2024 tax year (filed in 2025), the maximum credit ranges from $560 for workers with no may have access to children, up to $3,995 for those with three or more may have access to children. These amounts and the income limits that trigger them change each year.
To receive any credit, your earned income and adjusted gross income must both fall below the limit for your situation. If you are single with no children, the income limit is around $17,000. If you are married filing jointly with one child, it is higher. The IRS publishes the exact limits each January on its website and in the instructions to Form 1040.
The credit begins to reduce once your income passes a certain threshold — this is the "phase-out" range. If your income is very high, you will not receive any credit. The phase-out thresholds also vary by filing status and number of children.
Who can claim the EITC
To claim the EITC, you must have earned income from work — wages, salary, self-employment income, or farm income. You cannot claim it on investment income, unemployment benefits, or Social Security. You must also be a U.S. citizen or resident alien for the entire tax year, and you must have a valid Social Security number.
If you have no may have access to children, you must be between 25 and 64 years old (with some exceptions for military service). If you have may have access to children, there is no age requirement, but the children must live with you for more than half the year, be related to you by blood or adoption, and be under 17 at the end of the tax year (or any age if permanently disabled).
You cannot claim the credit if your filing status is married filing separately. If you are married, you must file jointly to receive the EITC.
How to claim the credit on your tax return
You claim the EITC by filing a federal income tax return, even if you normally would not have to file because your income is too low. You will need your Social Security number, your spouse's number if filing jointly, and the Social Security numbers of any may have access to children. You will also need to report your earned income for the year.
If you have may have access to children, you file Schedule EIC along with Form 1040. If you have no children but meet the age and income requirements, you still file Form 1040 and claim the credit there. The IRS instructions for Form 1040 walk through the steps to calculate your credit amount, or you can use tax software or a tax preparer to do it for you.
You must file your return by the tax important date (usually April 15) to claim the credit for that year. If you miss the important date, you can still file a late return to claim the credit, but you should do so within three years of the original important date to avoid losing it.
Free tax preparation if you earn below the income limit
The IRS runs a program called VITA (Volunteer Income Tax information) that offers free tax preparation and filing to people who earn below a certain income threshold — usually around $60,000 depending on the year. VITA sites are staffed by trained volunteers and certified tax professionals who will help you file your return and claim the EITC at no cost.
You can find a VITA site near you by visiting the IRS website and using their site locator tool, or by calling 211 and asking for tax preparation help. VITA sites operate during tax season, usually from January through April, though some sites open earlier or stay open longer. You will need to bring documents showing your income, your Social Security number, and your filing status.
If you prefer to file on your own, the IRS also offers free tax software through its Free File program for people below the income limit. You read the software, enter your information, and file electronically.
What happens after you claim the credit
Once you file your return claiming the EITC, the IRS processes it like any other return. If you are owed a refund, the IRS will send it to you by mail or direct deposit, depending on how you filed. If you chose direct deposit, the refund usually arrives within 21 days of the IRS accepting your return. If you requested a paper check, it takes longer.
The IRS may verify your claim by asking you to send documents proving your income, your children's relationship to you, or your residency. This is called an EITC examination. If the IRS asks for documents, respond within the timeframe they give you. Failure to respond can result in losing the credit and owing back taxes plus interest.
If you received too much credit because your income was higher than you reported, or because a child did not meet the requirements, you may have to repay part or all of it when you file your next return. The amount you have to repay is capped — it cannot exceed a certain amount depending on your filing status and number of children.
EITC and other tax credits or benefits
The EITC can be claimed along with other tax credits, such as the Child Tax Credit or the Child and Dependent Care Credit, as long as you meet the requirements for each one. However, you cannot claim the same child for more than one credit — you must choose which credit gives you the larger benefit for that child.
Receiving the EITC does not affect your ability to receive other government benefits such as food information, housing support, or Medicaid. The EITC is not counted as income for the purpose of determining whether you are may be able to access for those programs.
If you are self-employed, you can claim the EITC based on your net self-employment income. You will need to file Schedule C (Profit or Loss from Business) along with your return to report that income.
Frequently Asked Questions
Do I have to file a tax return to get the EITC?
Yes. The IRS does not send you the credit automatically. You must file a federal income tax return and claim it, even if your income is very low and you would not normally have to file. If you do not file, you will not receive the credit for that year.
What if I have a child who does not have a Social Security number?
Your child must have a valid Social Security number to be a may have access to child for the EITC. If your child does not have one, you can explore for one through the Social Security Administration, but you will not be able to claim the credit until you have the number and file an amended return.
Can I claim the EITC if I am self-employed?
Yes. Self-employment income counts as earned income for the EITC. You will need to file Schedule C to report your business income and calculate your net profit, then use that amount to determine your EITC may be able to access and credit amount.
What if the IRS asks me to verify my EITC claim?
Send the documents the IRS requests within the timeframe they provide. Common requests include proof of income (W-2s, pay stubs, or business records), proof that a child lives with you (lease, utility bill, school records), or proof of your Social Security number. Keep copies for your records.
Can I claim the EITC if I am married but file separately from my spouse?
No. If you are married, you must file a joint return to claim the EITC. If you file separately, neither you nor your spouse can claim the credit, even if one of you would otherwise be may be able to access.