What is the earned income tax credit, and do you qualify?

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If you earned money from working in 2025, you might qualify for the earned income tax credit (EITC). It’s designed to help low-income to moderate-income workers get a tax break and pocket more of their wages. The earned income credit could put hundreds or thousands of extra dollars in your pocket if you qualify. But about 1 in 5 eligible taxpayers miss out on the credit, often because they’re not required to file a tax return, or they aren’t aware that they qualify.

Not sure if you can claim the earned income tax credit? Read on to learn more about how this tax benefit works, the eligibility requirements, how much it’s worth, and how to claim it.

The earned income tax credit, or EITC (also sometimes shortened to earned income credit or EIC), is a dollar-for-dollar credit you can claim if you meet certain criteria. If you qualify, the EITC can lower your tax bill or increase your refund.

But the earned income tax credit isn’t available to all filers. To qualify, you’ll need to meet several criteria, but two of the most basic requirements are:

You need to have earned income: Money you earn from a job (including tips), self-employment, or working as an independent contractor all count. However, child support, Social Security benefits, retirement income, and unemployment compensation don’t count.
Your income can’t exceed certain thresholds for the year: The maximum amount of income you can earn and still qualify for the EITC varies based on your filing status and the number of dependent children you have. In 2025, a single filer with no dependents can only claim the credit if their income is less than $19,104, but a married couple with three or more children could get the EITC if their income is below $68,675.

The amount of the EITC also varies by filing status, family size, and income.

The earned income tax credit is a refundable tax credit that can take your liability below zero and trigger a tax refund. In the case of the earned income tax credit, you’ll typically receive a larger credit if you have a child, but you don’t have to claim a dependent to be eligible for the credit.

For instance, if you owe $1,000 in taxes and your credit amount from the EITC is $700, you’d only need to pay the IRS $300. But if your EITC credit was $4,000 because of a qualifying child, you’d receive a refund of $3,000 on your tax filing.

The Internal Revenue Service can’t issue EITC refunds until mid-February by law. If you claim the credit, your tax refund may be slightly delayed, no matter how early you file. However, the IRS says that most people who file online and choose direct deposit to a bank account should receive their EITC refunds by March 3, 2026, if there are no other issues with the return.

Families with multiple children benefit from larger EITC credit amounts. Below are the eligibility requirements for a qualifying child for EITC purposes. For tax preparation, separated spouses should note that only one person can claim each qualifying child on their tax return.

A qualifying child must be under 19 at the end of the tax year for which you are filing or under 24 if they are a full-time student. There is no age limit for claiming the EIC credit for a dependent who is permanently or totally disabled.

The child can be your biological or adopted child or a stepchild, foster child, sibling, step-sibling, grandchild, niece, or nephew. In all cases, the child has to have lived with you or your spouse for more than half the year and have a valid Social Security number.

If you don’t have qualifying children, you may still be able to claim the EITC depending on your marital status and adjusted gross income (AGI).

If you don’t have qualifying children, you must be at least 25 years old, but not older than 64. You also can’t be claimed as a dependent on anyone else’s tax return.

The IRS also has a special rule that may enable military members and clergy to claim the EITC.

In general, taxpayers who are married filing separately are not eligible to claim the earned income tax credit. In addition to meeting the filing status and income requirements, you can’t claim the 2025 EITC if you have any foreign earned income or investment income that totals more than $11,950.

Still not sure if you qualify? You can use the IRS EITC assistant to check your eligibility and ensure you get the maximum credit amount.

Here’s how to claim the earned income tax credit on your 2025 tax filing (due April 15, 2026) if your status is single or married filing jointly:

Most tax software will walk you through filling out these forms, including calculating your adjusted gross income. Just note that you can claim the EIC whether you’re using a Form 1040 or a Form 1040-SR.

If you have qualifying children, you’ll be prompted by the schedule to enter information about each child, including birth date, Social Security number, and more. Again, this is a fairly straightforward form, but double-check to ensure the info you provide is accurate.

As mentioned, the IRS is not allowed by law to release these funds until mid-February, so whether you file a joint return or an individual one, you may have to sit tight for a few weeks before certain credits are applied. If the IRS denies your claim to the EITC credit, you’ll have to submit a Form 8862 before you can correct your filing and submit again.

Yes, investment income can disqualify you from claiming the 2024 federal earned income tax credit, but only if it exceeds $11,950. Investment income includes interest, dividends, capital gains, royalties, and passive income like rental income. You’ll also be disqualified if you have to fill out a form claiming foreign-earned income. See the full IRS eligibility requirements for claiming the earned income tax credit on their website.

Calculating your adjusted gross income is an important first step to see if you’re eligible to claim the earned income tax credit. Adjusted gross income is your taxable income, which includes an individual taxpayer’s wages, tips, and other self-employment earnings, minus any deductions. The IRS provides a free tool to estimate adjusted gross income.

The IRS allows qualified taxpayers to file for previously unclaimed federal EITC credits for up to three previous tax years. To claim this federal credit, you’ll have to amend your tax return for prior years. You can check the previous EIC credit amounts for 2024, 2023, and 2022 on the IRS website.