The information in this article is up to date for tax year 2023 (taxes filed in 2024).
The Earned Income Tax Credit (EITC), also known as the Earned Income Credit (EIC), is a tax credit for low to moderate-income families who meet specific income and dependent requirements. The EITC is a refundable tax credit that is applied to your tax bill. If the credit you claim is more than your total tax bill, you can keep the difference.
How much is the EITC?
The maximum credit amounts for tax year 2023 (returns filed in 2024) are:
- $600 with no qualifying children
- $3,995 with one qualifying child
- $6,604 with two qualifying children
- $7,430 with three or more qualifying children
The maximum credit amounts for tax year 2022 (returns filed in 2023) are:
- $560 with no qualifying children
- $3,773 with one qualifying child
- $6,164 with two qualifying children
- $6,935 with three or more qualifying children
The maximum credit amounts for tax year 2021 (returns filed in 2022) are:
- $1,502 with no qualifying children
- $3,618 with one qualifying child
- $5,980 with two qualifying children
- $6,728 with three or more qualifying children
The maximum credit amounts for tax year 2020 (returns filed in 2021) are:
- $538 with no qualifying children
- $3,584 with one qualifying child
- $5,920 with two qualifying children
- $6,660 with three or more qualifying children
Do I qualify for the Earned Income Tax Credit?
The EITC has several qualifications. Read each one carefully to see if you qualify.
- You must have earned income (see section below for details).
- You must have a valid Social Security Number. Your spouse and qualifying children must also have one if you are claiming them or using the married filing jointly filing status.
- Your filing status cannot be married filing separately.
- You must be a U.S. citizen or U.S. resident for the whole year, OR a nonresident married to a U.S. citizen or resident filing a joint return.
- You cannot be a qualifying dependent of another person.
- You must meet the earned income, AGI, and investment income limits.
- Your qualifying child cannot be used by more than one person to claim the EITC.
- You cannot file Form 2555/2555-EZ for Foreign Earned Income.
- Your investment income must be $11,000 or less (for tax year 2023).
If you do not have a Qualifying Child, you must:
- Be at least 25 but younger than 65 at the end of the year.
- Live in the United States for more than half the year.
- Not be the Qualifying Child of another person.
What qualifies as earned income for the EITC?
Earned income is any form of payment that you receive from doing work. It will be most likely reported on a W-2 or 1099. There are various types of earned income, including:
- Salaries
- Wages
- Tips
- Commissions
- Royalties
- Jury duty pay
- Long-term disability
- Nontaxable combat pay
- Self-employment income
- Combat pay
To qualify for the EITC, you must have earned income, and it must be below a certain limit for your filing status. If your Adjusted Gross Income (AGI) is equal to or more than the amounts listed below, you cannot claim the EIC.
If your filing status is Single: Your AGI must be less than $17,640 if you have no children; $46,560 with one child; $52,918 with two children; and $56,838 with three or more children.
If your filing status is Married Filing Jointly: Your AGI must be less than $24,210 if you have no children; $53,120 with one child; $59,478 with two children; and $63,398 with three or more children.
Who is a qualifying child for the EITC?
A child must meet the following requirements to be used for the EITC.
Age Requirement
A child must meet at least one of the following requirements.
- Under 19 and younger than you or your spouse
- Under 24 and a full-time student in the last 5 months, as well as being younger than you or your spouse
- Any age and permanently and totally disabled at any time during the year
Relationship Requirement
A child must meet at least one of the following relationship requirements.
- Son, daughter, adopted child, stepchild, eligible foster child, or a descendant of any of them
- Brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them
- A legally adopted child
- A foster child who was placed with you by an authorized placement agency or order of the court
Residency Requirement
A child must have lived in the U.S. with you or your spouse for more than half the year.
Birth or Death of a Child
If the child was born or passed away during the year that you are claiming the EITC, and they lived with you for more than half of the year, you are eligible to claim the EITC.
Temporary Time Away from Home
If the child was away from home for a short amount of time, that counts as time spent with you. For example, if the child spent time in the hospital or was sent to boarding school for a portion of the year, you would still be eligible to claim the EITC.
Do I have to have children to claim the EITC?
No, the EIC is not only for parents. The credit amount is worth more for eligible taxpayers with children, but an eligible person with no dependents can also claim the EITC.
What documents do I need to claim the EITC on my tax return?
In order to claim the EITC, you must file Form 1040 (or 1040 SR for seniors). If you have a qualifying child, you also need to file Schedule EIC to claim the tax credit with their info.
How do I claim the EITC?
To get the EITC, you must file a tax return, even if you are not required to file taxes, and claim this credit on your return. File with TaxSlayer and we’ll suggest all the right tax breaks for you based on your answers to a few simple questions.
If you are filing a prior year return for 2020 and your income in 2020 was less than your income in 2019, the IRS will allow you to use your 2019 earned income amount when you file your return for 2020. This exception is intended to help taxpayers whose income/employment was affected by the COVID-19 pandemic.
Is there a deadline for claiming the EITC?
Yes, you can claim the EITC by filing your tax return by Tax Day. If you need extra time to file your tax return, you can file for an extension by Tax Day.
If you choose to file an extension, you have six additional months to file your tax return. For more on filing an extension, read How Do I File a Tax Extension?
