The Earned Income Tax Credit (EITC), Explained
The EITC is the single largest tax break for working low- and moderate-income Americans — worth up to $7,830 in 2024. About 1 in 5 eligible people never claims it.
What makes the EITC special
It's refundable: if the credit exceeds your tax liability, you get the difference as a refund. Most credits just zero out tax — this one can put money in your pocket beyond what you paid in.
You must have earned income
Wages, salaries, tips, or net self-employment earnings. Pure investment income, unemployment, Social Security, and pensions don't count as 'earned' for EITC purposes.
2024 income limits and max credit
| Children | Max credit | AGI limit (Single) | AGI limit (MFJ) |
|---|---|---|---|
| 0 | $632 | $18,591 | $25,511 |
| 1 | $4,213 | $49,084 | $56,004 |
| 2 | $6,960 | $55,768 | $62,688 |
| 3+ | $7,830 | $59,899 | $66,819 |
Other qualifying rules
- Valid SSN for you, spouse, and any qualifying children
- US citizen or resident alien all year
- Investment income under $11,600 (2024)
- Not filing Form 2555 (foreign earned income exclusion)
- Age 25–64 if no qualifying children
Qualifying children rules
- Relationship — child, stepchild, sibling, foster child, descendants
- Age — under 19, under 24 if full-time student, any age if permanently disabled
- Residency — lived with you in the US over half the year
Refund timing — the PATH Act
By law, the IRS cannot issue EITC refunds before mid-February. If you e-file early with EITC, expect your refund in late February at the earliest.
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