The Earned Income Tax Credit is money the federal government returns to you at tax time if you work and earn below certain income limits

The Earned Income Tax Credit (EITC) is a refundable tax credit, which means the IRS can send you money even if you owe no taxes. You receive it when you file your federal tax return. The credit is designed for people who work but earn modest wages — it phases out as your income rises, and disappears entirely above a certain threshold that depends on your filing status and how many children you claim.

The amount you receive depends on three things: how much you earned, whether you have children, and your filing status. A single person with no children can receive up to $600. A person with one child can receive up to $3,733. A person with three or more children can receive up to $3,995. These amounts change slightly each year. The credit is not automatic — you must claim it on your tax return, either by filing yourself or working with a tax preparer.

Key Takeaways

  • The EITC is a refund you receive at tax time if you work and earn below the income limit for your situation, which ranges from roughly $17,000 to $63,000 depending on filing status and children.
  • You must file a federal tax return to receive the credit, even if you earned so little that you normally would not have to file.
  • The IRS does not contact you to claim the credit — you or a tax preparer must include it on your return.
  • Free tax preparation services exist specifically for people with low to moderate income, and many can help you claim the EITC.
  • The credit is refundable, meaning you can receive money back even if you paid no federal income tax during the year.

Income limits and credit amounts by household type

The EITC has different income limits and maximum credit amounts depending on whether you are single, married filing jointly, or head of household, and how many children you claim. The IRS publishes these limits each year because they adjust for inflation.

For the 2023 tax year (filed in 2024), the income limits were roughly $17,000 for a single person with no children, $44,000 for a single person with one child, $56,000 for a single person with two children, and $63,000 for a single person with three or more children. Married couples filing jointly had higher limits — roughly $24,000 with no children and $71,000 with three or more children. Head of household filers fell between these two. The exact limits for the year you are filing are on the IRS website or on your tax form instructions.

Your income includes wages from employment, self-employment income, and some other sources. It does not include certain types of income like Social Security benefits or child support received. If you are unsure whether a particular income counts, ask a tax preparer or call the IRS directly.

How the credit amount is calculated

The EITC is not a flat payment — it grows as your earned income grows, then shrinks as your income rises above a certain point. This means two people earning the same total income might receive different credit amounts depending on the mix of wages and other income.

For someone with one child, the credit increases by roughly 34 cents for every dollar earned, up to a maximum income called the "plateau." Once you earn above the plateau, the credit decreases by roughly 16 cents for every dollar earned until it reaches zero. This structure means the credit is largest for people earning in the middle range — not the lowest earners, and not those near the income limit.

The exact calculation is complex, which is why using tax software or a tax preparer is common. Many free tax preparation programs (described below) will calculate your EITC for you.

Who can claim the EITC

You must have earned income from work to claim the EITC. This includes wages from a job, self-employment income, or certain other types of work-related pay. You cannot claim the credit if your only income is from investments, rental property, Social Security, unemployment benefits, or other non-work sources.

You must also be a U.S. citizen or resident alien for the entire tax year. If you are married, you can file jointly and claim the credit together, but you cannot claim it if you are married filing separately. If you have children, they must meet specific requirements: they must be your biological child, stepchild, adopted child, or foster child; they must be under age 17 at the end of the tax year; they must live with you for more than half the year; and they must have a valid Social Security number.

You do not need to own a home, have a certain immigration status beyond being a resident alien, or meet any other requirement beyond earned income and the rules above. Many people who are self-employed, work part-time, or work seasonal jobs can claim the EITC.

How to claim the EITC on your tax return

You claim the EITC by filing a federal tax return. If you earned very little, you might not be required to file a return, but you should file anyway to receive the credit — the IRS will not send it to you automatically.

If you file using tax software, the software will ask you questions about your income, filing status, and children, then calculate your EITC and include it on your return. If you work with a tax preparer, tell them about any children and your total earned income, and they will claim the credit for you. If you file by hand using IRS forms, you will use Schedule EIC (for children) and Form 1040 or 1040-SR to claim the credit.

The form you use depends on your situation. Most people use Form 1040. The IRS instructions for that form explain how to fill in the EITC lines. If you have children, you will also complete Schedule EIC, which asks for each child's name, age, and Social Security number.

Free tax preparation services that help with the EITC

The IRS partners with nonprofit organizations to offer free tax preparation through a program called VITA (Volunteer Income Tax Assistance). VITA sites are located in libraries, community centers, and nonprofit offices across the country. They serve people who earned less than a certain amount that year — usually around $60,000 — and they will prepare your entire return for free, including claiming the EITC.

To find a VITA site near you, visit the IRS website or call 211 and ask for tax preparation services. You will need to bring documents: your Social Security card or ITIN, photo ID, proof of income (W-2s or 1099s), and if you have children, their Social Security numbers and birth dates. VITA sites are busiest in March and April, so calling ahead to schedule an appointment is common.

Another option is Tax Counseling for the Elderly (TCE), which serves people age 60 and older. TCE sites also prepare returns for free and claim the EITC. The process and required documents are the same as VITA.

Some tax software companies offer free filing for people below a certain income threshold. You can file online yourself using this software, and it will calculate your EITC. The IRS maintains a list of free software options on its website.

What happens after you claim the EITC

When you file your return, the IRS processes it and calculates your refund, which includes your EITC. If you are owed money, the IRS sends it to you by direct deposit (if you provided banking information) or by check, usually within 21 days of processing your return. If you file early in the tax season, you may receive your refund within two to three weeks. If you file later, it may take longer.

The IRS may verify your return before sending your refund. This is more common if you claim the EITC with children, because the IRS randomly audits some of these returns to prevent fraud. If the IRS contacts you, they will ask for documents proving your income, your children's relationship to you, and that they lived with you. Keeping copies of your tax return and supporting documents for at least three years is standard practice.

If the IRS determines you claimed the EITC incorrectly, they will reduce or eliminate your refund and send you a notice explaining why. You have the right to respond to the notice and provide additional documents if you disagree.

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 earned so little that you are not required to file. Filing is free through VITA, tax software, or a tax preparer.

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 then claim the EITC on your return. A tax preparer can help you calculate both correctly.

What if I have a child who does not have a Social Security number?

You cannot claim that child on the EITC. The child must have a valid Social Security number. If your child was born in the U.S. but does not have a number yet, you can obtain one from the Social Security Administration before filing your return.

Can I claim the EITC if I am married but file separately?

No. Married couples must file jointly to claim the EITC. If you file separately, neither spouse can claim the credit, even if one spouse has children and earned income.

What if the IRS says I claimed the EITC incorrectly?

The IRS will send you a notice explaining what they found and how much they are reducing your refund. You have the right to respond within 30 days. If you disagree, you can provide additional documents or request a hearing. A tax preparer or legal aid organization can help you respond.