What's the Earned Income Tax Credit (EITC) and Who Qualifies?

The Earned Income Tax Credit (EITC) is a credit the federal government offers to taxpayers who earn low-to-moderate wages. This refundable credit can be a significant source of income for parents, and low-income taxpayers without children can claim a smaller credit.

While the EITC was created in 1975 to assist low-income families, it has evolved over the last 40-plus years to also benefit single filers. In 2025 individuals who are 25 and older and annually earn less than $19,104 can qualify for a refund of as much as $649 through this credit, even if they have no children.

Is the Earned Income Tax Credit Refundable?

The Earned Income Credit is refundable, meaning it can lower your tax bill and, if it reduces it below $0, generate a refund. Both single and married people, with and without qualifying dependents, may qualify for the EITC as long as they earn some income in the applicable tax year.

It is eligible for taxpayers who are employed by an employer and also self-employed. You must file a tax return to claim an EITC, even if you're otherwise not obligated to file a return.

Citizenship, SSN and filing-status requirements

The EITC's basic filing requirements are the same as with any other deduction or credit. You need to have a Social Security number, the names and Social Security numbers of your dependents, your W-2 or 1099, and any other documents that show income.

You also must have been a U.S. citizen or legal resident alien during the previous tax year to qualify for the tax credit. If you wish to file online, you will need last year's tax return handy, as you'll also need information such as your adjusted gross income to electronically sign your return.

How much is the earned income credit for 2025?

• $8,046 with three or more qualifying dependents
• $7,152 with two qualifying dependents
• $4,328 with one qualifying dependent
• $649 with no dependents

For those with dependents, the credit can be substantially more. Unfortunately, the IRS notes that nearly 20% of those eligible for the EITC fail to claim it. There are a few reasons someone may not be eligible for this credit. For example, if you earn more than $11,950 annually from investments, you won't qualify. This figure may change annually as it is indexed for inflation.

You also don't qualify if you claim foreign income on your U.S. tax return. In addition to the EITC, if you qualify for the Additional Child Tax Credit, you can still claim the EITC, but the IRS may postpone your refund until after March 1.

Who qualifies for the EITC?

The Earned Income Tax Credit (EITC) was created as a tax break to support moderate-income workers and low-income workers. To qualify for this tax break, individuals must meet certain guidelines. To qualify, they need to be a U.S. citizen or a resident alien for the entire year.

Qualification rules also require that individuals have earned income, remain under the investment income limit, have a valid Social Security number, and not have filed IRS Form 2555, which is for foreign earned income. Meeting these qualifications allows eligible workers to benefit from the EITC.

Earned Income Tax Credit Eligibility Checklist

Here is a "due diligence" checklist gleaned from IRS Form 8867 and IRS Publication 3524 designed to determine eligibility:

Complete the Earned Income Tax Credit (EITC) Eligibility Checklist for the current tax filing year. Additionally, fill out the Child Tax Credit/Additional Child Tax Credit (CTC/ACTC) worksheets on any Form 1040 and/or the American Opportunity Tax Credit (AOTC) worksheet on Form 8863.

• Ensure everyone listed on the return, including dependent children, has a valid Social Security number.
• Understand the variables between filing jointly, as head of household, as a widow(er) or as a single adult. Consult IRS Publication 501 for ascertaining filing status. Those filing as "married filing separately" do not qualify for the EITC unless you have a qualifying child and meet certain other requirements.
• Do not file for an EITC if investment income exceeds $11,950.
• Accurately document verifiable income. To qualify, total earned adjusted gross income (AGI) must be at least $1 (see below for more information on income limits).
• Ensure that the child or children claimed as dependents are not also claimed by someone else on another return. This can be an issue among former spouses or among relatives. If more than one person claims the same child, a mistaken filer must return the credit with penalties and interest. There are "tie-breaker rules" on Publication 501 to help answer any questions.
• Do not file for an EITC unless a child permanently lives in a home within the United States. There are special rules that apply for temporary absences, kidnapped children and for military dependents on extended duty outside the U.S.
• File for an EITC for totally and permanently disabled adults that live in the household as if for a dependent child.

What are some reasons you may not qualify for the Earned Income Credit?

You must complete Schedule EIC and file it with your tax return to claim the EIC. Sometimes, though, the IRS may reject your claim. Common reasons for rejection include:

• Your age – You must be between the ages of 25 and under 65 if you are claiming the EIC without a qualifying child.
• Your children's qualifying status – A child must meet four tests to be a qualifying child for the EIC.
  1. Relationship - To qualify as your child, the child must be your son, your daughter, your stepchild, your foster child, or a descendant of any of them. A qualifying child may also be your brother, your sister, your half-brother, your half-sister, your stepbrother, your stepsister, or a descendant of any of them.
  2. Age - To qualify, an individual must be under the age of 19 at the end of 2025, and younger than you, or under the age of 24 at the end of 2025 and a full-time student, or a permanently and totally disabled child of any age.
  3. Residency - You can not claim a child who has not lived with you for less than half of the year in 2025.
  4. Joint return - You cannot claim a child who has filed a joint return for 2025.
• Too little Adjusted Gross Income – If your AGI is zero or less, you are not eligible for the EIC.
• Too much earned income – Self-employment income is treated differently than W-2 income for the EIC. In some cases, you may appear to qualify for the credit based on your AGI but be ineligible because your earned income exceeds the limit. This often occurs when self-employed taxpayers contribute to a solo 401(k) or another retirement savings plan.
• Too little earned income – Only earned income counts toward the credit. As a result, much of your income may not be counted in determining your eligibility to claim the EIC. Some of the income types that are not counted include:
  • Child support
  • Alimony
  • Disability benefits
  • Unemployment compensation
  • Social Security benefits
  • Pensions and annuities
  • Pay received for work performed while incarcerated
  • Workers' compensation benefits
  • Veterans' benefits
  • Interest and dividends
• Too much investment income - Receiving investment income in an amount that is even one dollar over the allowed limit can also prevent you from qualifying for the EIC, even if you would be eligible based only on your earned income. For tax year 2026, if you receive over $11,950 in investment income, then you are not eligible to claim the EIC. After this year, the amount is indexed for inflation. Please visit the IRS website for updates to their EITC tables.
• Citizenship status – You must be a U.S. citizen or resident alien for the entire year to claim the EIC.
• Filing status – You cannot claim the credit if you are the qualifying child of another taxpayer.
• Missing Social Security Numbers – You must include a valid SSN for yourself and everyone you are claiming on your tax return. You cannot claim the EIC using other types of taxpayer identification numbers or SSNs that are not valid for employment.

Does the EITC Delay my Refund?

With the adoption of the Protecting Americans from Tax Hikes (PATH) Act in 2015, the IRS will no longer issue tax returns that claim the EITC or ACTC until after Feb. 15. The PATH Act provides more time for the IRS to review and validate EITC claims.

What is the income limit to claim the Earned Income Tax Credit (EITC)?

The IRS has income thresholds that determine whether you qualify for the EITC. The income limit to be eligible for the EITC is adjusted each year for inflation. In addition, it is adjusted based on the number of qualifying dependents the taxpayer can claim.

For tax year 2025 filed in 2026, in order to claim the EITC, a taxpayer's adjusted gross income (AGI) must be less than the following:

Qualifying Children	Max Credit	Max AGI (Single/HoH)	Max AGI (Married Filing Jointly)
None	$649	$19,104	$26,214
One	$4,328	$50,434	$57,554
Two	$7,152	$57,310	$64,430
Three or more	$8,046	$61,555	$68,675

Additional EITC requirements:

• There is an investment income limit of $11,950
• The maximum credit amounts vary by number of qualifying children
  • 0 qualifying children has a maximum credit amount of $649
  • 1 qualifying child has a maximum credit amount of $4,328
  • 2 qualifying children have a maximum credit amount of $7,152
  • 3 or more qualifying children have a maximum credit amount of $8,046