The information in this article is up to date for tax year 2024 (returns filed in 2025).
Have you ever heard of the Earned Income Tax Credit (EITC)? If you haven’t, you may be missing out on thousands of dollars at tax time. Every year, nearly 1 in 5 eligible workers fail to claim the EITC due to a lack of awareness. To help remedy the issue, we’ve broken down everything you need to know about the Earned Income Tax Credit and how to claim it.
What is the Earned Income Tax Credit?
The EITC is a refundable credit specially designed to help low to moderate-income workers. As with all tax credits, the EITC can reduce your tax liability but it also offers an additional perk. Since it’s refundable, you can receive a portion back as a refund once your tax obligation has been fulfilled.
This is why you still need to file a tax return even if you didn’t earn much money. The best way to do your taxes is with ezTaxReturn. It’s fast, ez and you’ll get the biggest possible refund guaranteed.
Who qualifies for the Earned Income Tax Credit?
According to the IRS, 23 million workers and families received about $57 billion in EITC for tax year 2022, with an average credit of $2,541. While Uncle Sam doesn’t just give the money away, meeting the qualifications is fairly ez.
Aside from having earned income, all it takes is:
- Having a valid Social Security Number
- Using any filing status except “married filing separately”
- Being aged 25-64 by the end of the year or having qualifying children
What are the EITC income limits?
The maximum income limit varies based on your filing status and the number of qualifying children being claimed. Don’t worry, you may still be eligible even if you don’t have any kids.
Earned Income Tax Credit 2024
The 2024 Earned Income Tax Credit is for people making up to $66,819 a year and can give families up to $7,830 back when they file taxes. For tax year 2024 (tax returns due in 2025), to take the EITC your adjusted gross income must be no more than:
Single, head of household or widowed
- $59,899 when claiming three or more qualifying children
- $55,768 when claiming two qualifying children
- $49,084 when claiming one qualifying child
- $18,591 when not claiming a qualifying child
Married filing jointly
- $66,819 when claiming three or more qualifying children
- $62,688 when claiming two qualifying children
- $56,004 when claiming one qualifying child
- $25,511 when not claiming a qualifying child
Additionally, your investment income must be less than $11,600 for the entire year.
Earned Income Tax Credit 2023
Eligible taxpayers who have yet to file their 2023 taxes should make sure to claim the EITC before the October 15th extended deadline. For tax year 2023, the EITC income limits are as follows:
Single, head of household or widowed
- $56,838 when claiming three or more qualifying children
- $52,918 when claiming two qualifying children
- $46,560 when claiming one qualifying child
- $17,640 when not claiming a qualifying child
Married filing jointly
- $63,398 when claiming three or more qualifying children
- $59,478 when claiming two qualifying children
- $53,120 when claiming one qualifying child
- $24,210 when not claiming a qualifying child
Additionally, your investment income must be less than $11,000 for the entire year.
How much money is the Earned Income Tax Credit worth?
The 2024 EITC maxes out at $632, $4,213, $6,960 and $7,830. The largest share of the pie goes to workers with the lowest incomes, particularly those who have qualifying children.
Earned Income Tax Credit 2024
Below you will find the maximum 2024 Earned Income Tax Credit amounts:
- $7,830 with three or more qualifying children
- $6,960 with two qualifying children
- $4,213 with one qualifying child
- $632 with no qualifying children
Please note, if you claim the Earned Income Tax Credit next year, the IRS must hold on to your refund until mid-February. This applies to your entire refund, not just the portion based on the credit. Although you may hate the extra waiting time, this delay is to minimize the risk of fraudulent returns.
Earned Income Tax Credit 2023
When filing your 2023 taxes, working families with children can get back up to $7,430. For tax year 2023 (returns due 2024), the EITC is potentially worth:
- $7,430 with three or more qualifying children
- $6,604 with two qualifying children
- $3,995 with one qualifying child
- $600 with no qualifying children
Claim your 2023 Earned Income Tax Credit now with ezTaxReturn. Hurry! The extended deadline is October 15, 2024.
How to claim the Earned Income Tax Credit
You can claim the EITC on your annual tax return (Form 1040 or Form 1040-SR). If you have qualifying children, you’ll also need to fill out Schedule EIC. When you file with ezTaxReturn, we’ll walk you through all the steps to see if you qualify for the EITC and claim the biggest return possible.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
