The Earned Income Tax Credit is money the federal government returns to you at tax time if you work and earn below a certain income threshold
The Earned Income Tax Credit (EITC) is a refundable tax credit for people who work but earn modest wages. When you file your federal tax return, the IRS calculates whether you meet the income and work requirements. If you do, you receive money back — either as a reduction in taxes owed or as a refund check if the credit exceeds what you owe. The amount varies based on your income, filing status, and number of may have access to children.
Unlike a tax deduction, which reduces the income the government taxes, a credit directly reduces the tax bill itself. Because the EITC is refundable, you can receive money even if you owe zero tax. This means the credit can put cash in your pocket rather than simply lowering what you pay.
The EITC exists at both the federal level and in some states. This guide covers the federal credit; your state may offer an additional credit on top of it.
Key Takeaways
- You must have earned income from work — self-employment, wages, or tips all count — to receive the EITC.
- Income limits change each year and depend on your filing status and whether you have may have access to children; the 2024 limits range from roughly $17,000 for single filers with no children to over $63,000 for married couples with three or more children.
- The credit is refundable, meaning you can receive money back even if you owe no federal tax.
- You claim the EITC by filing a federal tax return; you cannot receive it without filing, even if you are not required to file.
- Some states offer their own earned income tax credits that stack on top of the federal credit.
Income limits and credit amounts for 2024
The IRS sets new income limits and maximum credit amounts every year. For the 2024 tax year (filed in 2025), the federal EITC maximum credit is $3,995 for filers with three or more may have access to children, $3,733 for those with two children, $2,176 for those with one child, and $600 for those with no may have access to children.
Income thresholds also vary by filing status. A single filer with no children can earn up to roughly $17,000 and still receive some credit. A married couple filing jointly with three or more children can earn up to roughly $63,000. These numbers shift annually, and the IRS publishes updated limits in January each year.
The credit phases out as income rises — you do not lose it all at once when you cross the threshold. Instead, the amount you receive gradually decreases as your earnings increase, until you reach the income ceiling and receive nothing.
Who can claim the EITC
To claim the EITC, you must have earned income. This includes wages from an employer, net self-employment income, or tips reported to your employer. Income from investments, unemployment benefits, or disability payments does not count as earned income and does not make you ineligible, but it does not help you may have access to either.
You must also meet an age requirement if you have no may have access to children. Filers with no children must be at least 25 and under 65 years old during the tax year. If you have may have access to children, there is no age limit.
A may have access to child must be your biological child, stepchild, adopted child, or foster child; a sibling or descendant of any of these; or your sibling. The child must be under 17 at the end of the tax year, live with you for more than half the year, and be a U.S. citizen, national, or resident alien.
How to claim the EITC on your tax return
You claim the EITC by filing a federal tax return, even if you are not required to file. The IRS will not send you the credit automatically — you must file to receive it. You can file on your own using tax software, through a tax preparer, or at a free tax preparation site.
When you file, you report your income and family situation. If you have may have access to children, you list them on Schedule EIC (the EITC worksheet). The tax software or preparer calculates the credit based on your information and enters it on your return.
If you receive the credit, it appears on your tax return as a line item. If the credit is larger than the tax you owe, the IRS sends you the difference as a refund. Processing times vary, but refunds typically arrive within 21 days of the IRS accepting your return if you file electronically and choose direct deposit.
State earned income tax credits
Twenty-nine states and the District of Columbia offer their own earned income tax credits on top of the federal credit. Some states offer a flat percentage of the federal credit — for example, 20 percent of what you receive federally. Others set their own income limits and credit amounts.
If your state has an EITC, you claim it on your state tax return using a separate form or schedule. The rules and income limits may differ from the federal credit, so you could receive a federal credit but not a state one, or vice versa. Check your state's tax authority website to see whether your state offers a credit and what the current limits are.
Free tax preparation and EITC outreach
The IRS funds free tax preparation through the Volunteer Income Tax Assistance (VITA) program and Tax Counseling for the Elderly (TCE). VITA sites serve people who earn under a certain income threshold — usually around $60,000 — and can help you file your return and claim the EITC at no cost.
To find a VITA site near you, visit the IRS website or call 211. Many community organizations, libraries, and nonprofits host VITA clinics during tax season, typically from January through April. You will need to bring documents showing your income, filing status, and information about any may have access to children.
Some states and nonprofits also run EITC outreach campaigns to reach people who are may have access to to the credit but do not file. If you think you may have been owed an EITC in prior years, you can file amended returns for up to three years back.
What happens if you claim the EITC incorrectly
If you claim the EITC and the IRS later determines you did not meet the requirements, you will owe the credit back. The IRS may also impose penalties and interest. Common errors include claiming a child who does not meet the relationship or residency test, reporting incorrect income, or filing when your income exceeded the limit.
If the IRS questions your EITC claim, they will send you a notice. You can respond by providing documents that support your claim — for example, a birth certificate for a child, a lease showing where you lived, or pay stubs showing your income. Keep records of anything you use to support your return for at least three years.
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 a federal tax return to claim it, even if you owe no tax and are not required to file. Filing electronically and choosing direct deposit is the fastest way to receive your refund.
Can I claim the EITC if I am self-employed?
Yes. Self-employment income counts as earned income. You will need to report your net self-employment income on Schedule C and pay self-employment tax, but you can still claim the EITC if your income is below the limit.
What if my income changes during the year?
You claim the EITC based on your total income for the entire tax year, not your income at any single point. If you earned less than the income limit for your situation when you add up all months, you may receive the credit even if you earned more in some months.
Can I claim a child who does not live with me full-time?
No. A may have access to child must live with you for more than half the tax year. If a child lives with you for part of the year but spends significant time with another parent or guardian, you cannot claim that child for the EITC.
What if I received the EITC but later found out I was not supposed to?
The IRS will contact you and ask you to repay it. You can respond with documents showing you met the requirements, or you can repay the amount. If you cannot repay in full, you can request a payment plan. Do not ignore an IRS notice about the EITC.