Earned Income Tax Credit (EITC): What It Is, How to Qualify
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The earned income tax credit is a refundable tax credit for low- to middle-income workers.
The credit amount depends on income, filing status and number of children.
Taxpayers without children can qualify for the EITC, though the credit amount will be smaller.
The IRS cannot release EIC-related refunds until mid-February as a result of the 2015 PATH Act.
What is the earned income tax credit?
The earned income tax credit, sometimes shortened to "earned income credit," is a refundable tax credit for low- and moderate-income workers. For taxes filed in 2023, the credit ranges from $560 to $6,935 depending on tax-filing status, income and number of children. People without children can qualify.
If you fall within the guidelines for the credit, be sure to claim it on your return when you do your taxes. And if you didn’t claim the earned income credit when you filed your taxes in the last three years but think you qualified for it, the IRS encourages you to file an amended tax return so you can get that money back.
How does the earned income credit work?
Here are some quick facts about the earned income credit:
For the 2022 tax year (the tax return you'll file in 2023), the earned income credit ranges from $560 to $6,935 depending on your filing status and how many children you have.
For the 2023 tax year (taxes filed in 2024), the credit will be worth $600 to $7,430.
You don't have to have a child in order to claim the earned income credit.
The earned income tax credit doesn't just cut the amount of tax you owe — the EITC could also score you a refund, and in some cases, a refund that's more than what you actually paid in taxes.
If you claim the EITC, the IRS cannot issue your refund until mid-February by law.
Income limit for the earned income tax credit
Below are the maximum earned income tax credit amounts, plus the max you can earn before losing the benefit altogether.
2022 Earned Income Tax Credit
(for taxes due in April 2023)
Number of children | Maximum earned income tax credit | Max AGI, single or head of household filers | Max AGI, married joint filers |
|---|---|---|---|
0 | $560 | $16,480 | $22,610 |
1 | $3,733 | $43,492 | $49,622 |
2 | $6,164 | $49,399 | $55,529 |
3 or more | $6,935 | $53,057 | $59,187 |
Both your earned income and your adjusted gross income each have to be below the levels in the table.
In general, the less you earn, the larger the earned income credit.
Your earned income usually includes job wages, salary, tips and other taxable pay you get from your employer. Your adjusted gross income is your earned income minus certain deductions.
2023 Earned Income Tax Credit
(for taxes due in April 2024)
Number of children | Maximum earned income tax credit | Max AGI, single or head of household filers | Max AGI, married joint filers |
|---|---|---|---|
0 | $600 | $17,640 | $24,210 |
1 | $3,995 | $46,560 | $53,120 |
2 | $6,604 | $52,918 | $59,478 |
3 or more | $7,430 | $56,838 | $63,398 |
Who is eligible for the earned income credit?
Besides staying below the income thresholds noted above, there are other qualification rules and requirements. Here are the big eligibility rules, but you can also check out our quiz below for a quick read on whether you might qualify for the earned income credit.
You must have at least $1 of earned income (pensions and unemployment don't count).
Your investment income must have been $10,300 or less in 2022. In 2023, it can't exceed $11,000.
You can qualify for the EITC if you’re separated but still married. To do so, you can’t file a joint tax return and your child must live with you for more than half the year. You also must not have lived with your spouse during the last six months or you must have a separation agreement or decree.
You must not have to file Form 2555, Foreign Earned Income; or Form 2555-EZ, Foreign Earned Income Exclusion.
If you're claiming the EITC without any qualifying children, you must be at least 25 years old but not older than 65. If you're claiming jointly without a child, only one spouse needs to meet the age requirement.
There are special EIC rules for members of the military and the clergy, as well as for people who have disability income or who have children with disabilities.
Kids and the earned income credit
If you claim one or more children as part of your earned income credit, each must pass certain tests to qualify:
The child can be your son, daughter, adopted child, stepchild, foster child or grandchild. The child also can be your brother, sister, half-brother or half-sister, stepbrother or stepsister or any of their children (your niece or nephew).
The child must be under 19 at the end of the year and younger than you or your spouse if you're filing jointly, OR the child must be under 24 if he or she was a full-time student. There's no age limit for kids who are permanently and totally disabled.
The child must have lived with you or your spouse in the United States for more than half the year.
For each child you're claiming with the EITC, you’ll also need:
A Social Security number (be sure to use the child’s name and Social Security number exactly as they appear on the Social Security card).
Their birthdate.
If you don't have kids
You may be able to get the EITC if you don’t have a qualifying child but meet the income requirements for your filing status. To qualify, you typically must meet three more conditions:
You must have resided in the United States for more than half the year.
No one can claim you as a dependent or qualifying child on their tax return.
You must be at least 25 years old but not older than 64. If married filing jointly, at least one spouse must meet the age requirement.
Consequences of an EIC-related error
Not only does an error on your tax form delay the EIC part of your refund — sometimes for several months — but it also means the IRS could deny the entire earned income credit.
If the IRS denies your whole EIC claim:
You must pay back any EIC amount you’ve been paid in error, plus interest.
You might need to file Form 8862, "Information To Claim Certain Credits After Disallowance" before you can claim the EIC again.
You could be banned from claiming EITC for the next two years if the IRS finds you filed your return with “reckless or intentional disregard of the rules.”
You could be banned from claiming EITC for the next 10 years if the IRS finds you filed your return fraudulently.
Most tax software walks you through the EITC with a series of interview questions, greatly simplifying the process. (Plus, if you qualify for the EITC, you might be able to get free tax software.) But remember: Even if someone else prepares your return for you, the IRS holds you responsible for all information on any return you submit.
Past years' earned income tax credit
If you need the income thresholds and credit amounts from past years, take a look back.
Promotion: NerdWallet users get 25% off federal and state filing costs. | |
| |
Promotion: NerdWallet users can save up to $15 on TurboTax. | |
Promotion: NerdWallet users get 30% off federal filing costs. Use code NERD30. |
