The Earned Income Tax Credit, usually called the EITC, is a federal tax credit for people who work and earn below certain income thresholds. It is refundable, which means if the credit is larger than the taxes you owe, you get the difference back as a refund. For some households it amounts to several thousand dollars. Despite this, roughly 20 percent of people who qualify do not claim it each year.
Who qualifies
To qualify for the EITC, you must have earned income from employment or self-employment and your income must fall below IRS limits that change annually. For 2025 taxes, the income limit for a single person with no children was around $18,600. With one qualifying child it rises to about $49,000. With three or more qualifying children, the limit for a married couple reaches around $66,000. You must be a US citizen or resident alien, have a valid Social Security number, and cannot file as married filing separately in most cases.
How much it is worth
The credit amount depends on your income, filing status, and number of qualifying children. For 2025 taxes, the maximum credit was $7,830 for families with three or more qualifying children. For taxpayers with no children, the maximum was $632. The credit phases in as income rises and then phases out after a certain point. The IRS EITC Assistant tool at irs.gov lets you enter your situation and see an estimate of what you might receive.
Why people miss it
People miss the EITC for several reasons. Self-employed individuals sometimes do not realize they qualify. People who had a major income change during the year may not realize they now fall within the limits. Some people assume the credit is only for families with children and do not know that workers without children can also qualify, albeit for smaller amounts. And some people who do not normally file a tax return do not realize they need to file to claim the credit.
How to claim it
The EITC is claimed on your federal tax return by completing Schedule EIC. Free filing options are available through the IRS Free File program for people below the income threshold, and VITA sites, which are IRS-sponsored free tax preparation services, can help you claim the credit correctly at no cost. If you believe you qualified in prior years and did not claim the credit, you can file an amended return for up to three years back.
The EITC is one of the most direct financial support programs available to working people. If you are not certain whether you qualify, the few minutes it takes to check is worth it.