The information in this article is up to date for tax year 2025 (returns filed in 2026).
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. Even though millions of people claim the EITC, around 20% of workers miss out 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?
To qualify for the Earned Income Tax Credit (EITC), you must meet certain basic qualifying rules. These rules ensure that the credit is given to those who truly need it. Here are the essential criteria you need to meet:
- You must have earned income from a job or self-employment.
- You need a valid Social Security number.
- You must be a U.S. citizen or resident alien for the entire tax year.
- You must file a tax return, even if you owe no tax or are not required to file.
- You must meet the income and filing status requirements.
According to the IRS, 23 million workers and families received about $64 billion in Earned Income Credit (EIC) for tax year 2023, with an average credit of $2,743.
Qualifying Children
Having qualifying children can significantly increase the amount of your Earned Income Tax Credit. A qualifying child must meet several criteria:
- The child must be under age 19 at the end of the tax year, or under age 24 if they are a full-time student.
- The child must be your son, daughter, stepchild, foster child, or a descendant of any of them (such as your grandchild).
- The child must have lived with you for more than half of the tax year.
- The child must not have filed a joint return with another person.
If your child meets these requirements, they can be considered a qualifying child, which can help you maximize your tax credits.
Claiming the EITC without a Qualifying Child
You can still claim the Earned Income Tax Credit even if you don’t have a qualifying child. To do so, you must:
- Meet the basic EITC qualifying requirements.
- You must have resided in the United States at least half of the year.
- You not be claimed as a dependent on someone else’s tax return.
- You must be between the ages of 25 and 64. If married filing jointly, one spouse must meet the age requirement.
Meeting these requirements allows you to benefit from the Earned Income Tax Credit, even without a qualifying child.
What Are the EITC Income Limits?
The maximum credit amount 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 2025
The Earned Income Tax Credit 2025 is for people making up to $68,675 a year and can give families up to $8,046 back when they file taxes. Here are the income limits for claiming the Earned Income Credit (EIC) based on your filing status:
Single, head of household or widowed
- $61,555 when claiming three or more qualifying children
- $57,310 when claiming two qualifying children
- $50,434 when claiming one qualifying child
- $19,104 when not claiming a qualifying child
Married filing jointly
- $68,675 when claiming three or more qualifying children
- $64,430 when claiming two qualifying children
- $57,554 when claiming one qualifying child
- $26,214 when not claiming a qualifying child
Additionally, your investment income must be less than $11,950 for the entire year. In addition to the EITC, families may also be eligible for the Child Tax Credit, which can further reduce their tax liability.
How Much Money Is the Earned Income Tax Credit Worth?
The 2025 EITC maxes out at $8,046. The largest share of the pie goes to workers with the lowest incomes, particularly those who have qualifying children.
Earned Income Tax Credit 2025
Below you will find the maximum 2025 Earned Income Tax Credit amounts:
- $8,046 with three or more qualifying children
- $7,152 with two qualifying children
- $4,328 with one qualifying child
- $649 with no qualifying children
Please note, if you claim the Earned Income Tax Credit early in the season, 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.
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 any other tax breaks you deserve.
Disallowances for Reckless or Fraudulent Claims
The IRS takes the accuracy of Earned Income Tax Credit claims very seriously. If your claim is found to be reckless or fraudulent, you could face severe consequences. These may include:
- Penalties and fines, which can be substantial.
- Interest on the amount of the credit claimed.
- A penalty of up to $5,000 for reckless or fraudulent claims.
- Potential imprisonment for severe cases of fraud.
The IRS has robust measures in place to detect and prevent EITC fraud. If you are found to have made a reckless or fraudulent claim, you could face significant penalties and legal consequences. Always ensure your claim is accurate and truthful to avoid these risks.
Ready to claim your Earned Income Tax Credit? File your taxes with ezTaxReturn today.
Frequently Asked Questions
What is the Earned Income Tax Credit (EITC)?
The EITC is a refundable tax credit for low- to moderate-income workers and families. It reduces your tax liability and can result in a refund even if you owe no taxes.
Who qualifies for the EITC?
You may qualify if you have earned income from work, meet certain income limits, and, if applicable, have qualifying children. Age and filing status rules also apply.
How much can I get from the EITC?
The credit amount depends on your income, filing status, and number of qualifying children. For 2025, the maximum credit is $8,046 for families with three or more children.
Can single taxpayers claim the EITC?
Yes. Single taxpayers without children may qualify if they meet the age and income requirements, while those with children have higher credit amounts.
Do I need children to claim the EITC?
No. Taxpayers without children can claim a smaller EITC if they meet age and income requirements, but having qualifying children increases the credit substantially.
Are there income limits for the EITC?
Yes. Income limits vary based on filing status and number of qualifying children. Exceeding these limits makes you ineligible for the credit.
Can I claim the EITC if I am self-employed?
Yes. Self-employed individuals with earned income can claim the EITC, but they must also account for self-employment taxes when calculating eligibility.
How do I claim the EITC on my tax return?
You claim the EITC on Form 1040 using the EIC worksheet or by entering your qualifying children’s information on the appropriate schedule.
Can I get the EITC if I file jointly with my spouse?
Yes. Filing jointly often increases eligibility and the maximum credit amount, as long as you meet income limits and other requirements.
How can tax software help me claim the EITC?
Tax software like ezTaxReturn can check eligibility, calculate your maximum credit, and guide you through the forms to ensure you don’t miss out on this valuable tax benefit.
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.
