The Earned Income Tax Credit (EITC): Don’t Leave Money on the Table
When tax season rolls around, one of the most valuable credits for working families is the Earned Income Tax Credit (EITC)… many eligible taxpayers still miss out.
What Is the EITC?
The EITC is a refundable federal tax credit for people who earn income from work…
Created in 1975 to offset payroll taxes and encourage work…
Who Qualifies?
Income Limits
Your earned income and AGI must be below annual IRS thresholds…
Filing Status
- Single
- Married filing jointly
- Head of household
- Qualifying widow(er)
Not eligible: Married filing separately.
Qualifying Children
Must meet relationship, age, residency, and SSN tests…
Workers Without Children
May qualify for a smaller credit if generally ages 25–65 and meet income rules.
How Much Is the Credit?
- No children: smaller
- One child: higher
- Two children: larger
- Three+: largest
Credit phases out as income rises.
How to Claim the EITC
- Check eligibility with the IRS EITC Assistant.
- Gather W-2/1099s; keep SE records.
- File Form 1040.
- Attach Schedule EIC if claiming children.
Most software checks eligibility. Free help: VITA / TCE.
Common Mistakes
- Ineligible dependents
- Income errors
- Missed deadlines
Why It Matters
Reduces Poverty
Lifts millions—especially children—above poverty.
Boosts Refunds
Refundable credit can increase your refund for essentials.
Special Situations
- Military: May include/exclude combat pay.
- Self-employed/gig: Eligible; track income/expenses.
- Immigrants: Valid SSNs required; ITIN not eligible.
FAQs
1) Can I claim the EITC if I’m self-employed?
Yes—report all SE income, pay SE tax, keep records.
2) Do I need a child to claim the EITC?
No. Workers without children may qualify if they meet income/age rules.
3) What if I claim it incorrectly?
Refund can be delayed/denied; repeated errors risk penalties or a temporary ban.
4) Does unemployment count as earned income?
No—unemployment isn’t earned income for EITC.
5) Can immigrants claim the EITC?
Yes, with valid SSNs and all other rules met. ITIN holders aren’t eligible.
6) When will I get my refund?
By law, refunds with EITC aren’t released until mid-February.
Next step: Use the calculator above, then file to claim your EITC. Official rules and thresholds: IRS: Earned Income Tax Credit .