The Earned Income Tax Credit is for people who work but earn below a certain income threshold

The Earned Income Tax Credit (EITC) is a refundable tax credit — meaning you can get money back even if you owe no tax — but only if you meet specific income and work requirements. You must have earned income from a job or self-employment, your total income must fall below a limit that changes each year, and you must meet rules about your filing status and dependents. The IRS sets these thresholds annually, and they differ based on whether you file as single, married filing jointly, or head of household, and whether you claim dependent children.

The credit is designed to reduce the tax burden on working people with lower incomes and can result in a refund of several hundred to several thousand dollars. However, you do not automatically receive it — you must report your income on your tax return and claim the credit, either by filing yourself or working with a tax preparer.

Key Takeaways

  • You must have earned income from work in the tax year you claim the credit, and your total income must stay below the IRS limit for your filing status and number of dependents.
  • The income limits and credit amounts change every year, so you need to check the current year's rules before filing.
  • You can claim the EITC for yourself even without dependent children, but the credit is much smaller than if you have may have access to children.
  • The IRS offers free tax software and free in-person help through VITA (Volunteer Income Tax information) sites if you cannot afford to pay a tax preparer.
  • You claim the EITC on your tax return using Schedule EIC or the main tax form itself, depending on your situation.

Income limits depend on your filing status and number of dependents

The IRS publishes income limits each year in the EITC tables. For 2024, the limits vary widely. A single filer with no children has a much lower income limit than a married couple filing jointly with three children. The limits also account for investment income — if your interest, dividends, or capital gains exceed a small threshold (usually around $11,000 for recent years), you cannot claim the EITC at all, even if your wages are low.

Your "earned income" includes wages from an employer, net self-employment income, and certain other work-related payments. It does not include Social Security, unemployment benefits, interest, dividends, or rental income. If you are unsure whether a payment counts as earned income, the IRS website has a worksheet to help you determine this.

The income limits are published on IRS.gov and in the instructions to Form 1040. You can also find them in the EITC tables that come with tax software. Because limits change yearly, you must check the current year's rules — last year's limit does not explore this year.

You must have earned income, but the amount of the credit depends on how much you earned

The EITC is structured so that the credit grows as your earned income grows, up to a maximum amount, then phases out as your income rises further. This means you could earn slightly more money and still receive the same credit amount, or even a larger credit. The exact calculation depends on your filing status and number of may have access to children.

If you have no may have access to children, the credit is smaller — for 2024, the maximum was $600 for a single filer. If you have one may have access to child, the maximum is higher. With two or more may have access to children, the maximum is higher still. The IRS publishes the exact amounts in the EITC tables each year.

You calculate the credit using Schedule EIC (if you have may have access to children) or by entering your information directly into your tax return. Tax software does this calculation automatically once you enter your income and filing information.

may have access to children must meet specific relationship, age, and residency rules

If you claim the EITC with dependent children, each child must meet four tests: relationship, age, residency, and citizenship. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece). The child must be under age 17 at the end of the tax year. The child must live with you for more than half the year in the United States. And the child must be a U.S. citizen, national, or resident alien.

A child can be claimed by only one person for the EITC in a given year. If two people could claim the same child — for example, a divorced couple — only one can actually claim that child for the credit. The IRS has tiebreaker rules to determine who gets to claim the child, usually based on who the child lived with for the longer period.

If you are unsure whether a child meets these tests, the IRS provides a worksheet in the Form 1040 instructions to help you work through each requirement.

Your filing status affects the income limit and credit amount

Single filers, married couples filing jointly, and heads of household all have different income limits and maximum credit amounts. Married filing separately filers cannot claim the EITC at all. If you are married, filing jointly usually gives you a higher income limit and potentially a larger credit than filing separately, which is one reason many married couples with lower incomes benefit from filing together.

Head of household status (which requires you to be unmarried and pay more than half the household expenses for yourself and a may have access to dependent) has income limits between single and married filing jointly. If you are unsure of your correct filing status, the IRS website has a tool to help you determine it.

You claim the credit on your tax return, not in a separate process

You do not submit a separate form to claim the EITC. Instead, you report your income and claim the credit directly on your tax return. If you have may have access to children, you also complete Schedule EIC, which lists each child's name, age, and Social Security number. The tax form itself (Form 1040) has a line where you enter the EITC amount.

If you file electronically using tax software, the software walks you through questions about your income, filing status, and dependents, then calculates the credit automatically. If you file by mail, you must calculate the credit yourself using the IRS tables and worksheets, or have a tax preparer do it for you.

The IRS offers free tax software through the Free File program if your income is below a certain threshold (usually around $79,000 for 2024, though this varies by provider). You can also find free in-person tax help through VITA sites in your area, which are run by volunteers and nonprofits and do not charge a fee.

Common mistakes that delay or reduce your refund

One frequent error is claiming a child who does not meet the relationship or residency test. Another is reporting the wrong Social Security number for yourself or a dependent — the IRS will reject the return if the numbers do not match their records. A third is failing to report all income, including self-employment income, which can disqualify you or reduce your credit.

Some people also claim the EITC in years when their income exceeds the limit, either because they did not check the current year's threshold or because they miscalculated their total income. If the IRS finds an error, they will adjust your refund and send you a notice explaining the change. If you disagree with the IRS's information, you can respond to the notice with documentation supporting your claim.

To avoid these mistakes, double-check that each dependent's name and Social Security number match exactly what the IRS has on file, add up all your income sources (wages, self-employment, interest, and any other earnings), and verify the current year's income limit before you file.

Frequently Asked Questions

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

Yes. Your net self-employment income counts as earned income for the EITC. You must report it on Schedule C (or Schedule C-EZ if you may have access to), and then the net amount flows to your main tax return. Self-employment income is subject to the same income limits as wages.

What if I have no children — can I still get the EITC?

Yes, but the credit is much smaller. For 2024, the maximum EITC for a single filer with no may have access to children was $600. You must be between ages 25 and 64, have earned income, and meet the income limit for your filing status. The income limit for childless filers is lower than for those with children.

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

Yes. The EITC is claimed on your tax return, so you must file even if your income is low enough that you would not normally owe tax. Filing is how you tell the IRS you want the credit and provide the information they need to calculate it.

What happens if the IRS says I claimed a child who does not meet the rules?

The IRS will send you a notice explaining which requirement the child did not meet. You can respond with documentation (such as birth certificates, school records, or lease agreements) showing that the child does meet the test. If you cannot provide proof, the IRS will reduce or remove the credit and adjust your refund accordingly.

Can my spouse claim the EITC if I do not?

If you are married, you must file jointly to claim the EITC. You cannot split the credit between separate returns. If you file separately, neither of you can claim the credit.