The Earned Income Tax Credit, explained in plain English
The Earned Income Tax Credit — EITC — is a federal tax credit for people who work but earn low to moderate incomes. Unlike a tax deduction, which only reduces the tax you owe, the EITC is refundable: if the credit is larger than your tax bill, the Internal Revenue Service (IRS) pays you the difference as a refund. That is why it matters even for workers who owe no federal income tax at all — you can still receive money back.
The credit is claimed once a year, on your federal tax return, and its size depends on three things: how much you earned, your filing status, and how many qualifying children you have. For tax year 2025 (the return you file in 2026), the maximum credit runs from $649 with no qualifying children to $8,046 with three or more. This site explains, step by step, who can qualify, how the IRS calculates the credit, and how to claim it — with the published figures shown, so you can check every number.
- The EITC is refundable: it can produce a refund even if you owe no tax.
- 2025 maximum: $649 (no children), $4,328 (one child), $7,152 (two children), $8,046 (three or more).
- Both your earned income and your adjusted gross income must be below the limit for your family size.
- If your investment income is above $11,950 for 2025, you cannot claim the credit at all.
Start here: the five questions everyone asks
Do I qualify? You must have earned income, a Social Security number valid for employment, and a filing status the IRS allows — and you must pass the income limits. Our who qualifies guide lists every basic rule.
How much will I get? Start from the maximum for your number of children, then follow the phase-in and phase-out. The maximum amounts guide gives the full 2025 table, and how the credit is calculated explains the shape of the credit.
What counts as a qualifying child? Relationship, age, and residency tests all apply, and only one person can claim the same child. See qualifying child rules.
Can I claim it if I have no children? Yes, but the credit is much smaller and the age rules are stricter. See workers without a qualifying child.
How do I actually claim it? On your tax return, usually with Schedule EIC, or let free help do it. See how to claim.
A note on the figures in these guides
The IRS adjusts the EITC every year for inflation: the maxima, the income cutoffs, and the investment-income limit all move. Every rates page on this site states the tax year its figures apply to and tells you to check the current figure with the IRS before filing. The main tables here are for tax year 2025, the return filed in 2026. A short note on the announced 2026 adjustments appears where it helps, labelled as announced figures to confirm when you file.
These guides are general information only. They are not personal tax or legal advice, and they do not replace the IRS rules, Publication 596, or the EIC table for your tax year. Where a rule is complicated or depends on your situation, the guide says so and points you to the IRS.
All ten guides
- EITC explained — what the credit is, why it is refundable, and who it is for
- Maximum amounts 2025 — the full maxima and income cutoff table, plus the investment limit
- How the credit is calculated — phase-in, plateau, phase-out, and the EIC table
- Who qualifies — the basic rules every worker must meet
- Qualifying child rules — relationship, age, residency, and tie-breakers
- Workers without a qualifying child — the age 25–64 rule and the smaller credit
- Self-employed, military and special rules — net earnings, combat pay, clergy, disability
- How to claim — Schedule EIC, Free File, VITA, and refund timing
- Mistakes, audits and bans — common errors, the 2-year and 10-year bans, amended returns
- EITC and other benefits — the Child Tax Credit alongside EITC, benefits interaction, state EITCs
Sources to check: IRS, Earned Income Tax Credit (EITC) (irs.gov); IRS Publication 596, Earned Income Credit (2025); IRS, Earned income and Earned Income Tax Credit (EITC) tables (irs.gov).