The Earned Income Tax Credit (EITC) is one of the most valuable credits available for working individuals and families with low to moderate income. If you qualify, it can significantly reduce the amount of tax you owe—or increase your refund.
For 2025, the credit amounts and income thresholds have been adjusted for inflation. Whether you’re single, married, or have children, it’s worth checking if you’re eligible to claim this benefit.
What Is the EITC?
The Earned Income Tax Credit is a refundable tax credit, meaning it can reduce your tax bill to zero—and if the credit is larger than your tax owed, you can receive the difference as a refund. It’s designed to support workers with lower incomes, especially those raising children.
Eligibility is based on your earned income, filing status, and the number of qualifying children you have. You must meet certain requirements, such as having a valid Social Security number and not being claimed as a dependent on someone else’s return.
2025 EITC Amounts by Family Size
Here’s a breakdown of the maximum EITC amounts for 2025:
- No children: $649
- One child: $4,328
- Two children: $7,152
- Three or more children: $8,046
Income Limits for Single or Head of Household Filers
- Phaseout begins: $10,620
- Credit phases out completely at:
- No children: $19,104
- One child: $50,434
- Two children: $57,310
- Three or more children: $61,555
Income Limits for Married Filing Jointly
- Phaseout begins: $17,730
- Credit phases out completely at:
- No children: $26,214
- One child: $57,554
- Two children: $64,430
- Three or more children: $68,675
How to Claim the Credit
To claim the EITC, you must file a tax return—even if you don’t owe any taxes. You’ll need to report all forms of earned income (such as wages, self-employment income, or certain disability benefits) and list any qualifying children with valid Social Security numbers.
The IRS may require additional documentation to verify residency for dependents, such as school or medical records, especially if you’re claiming children as part of your credit.
Why It Matters
The EITC is one of the most powerful tools for reducing your overall tax burden or boosting your refund. It’s designed to reward work and support families, and even if your income is on the lower end, the benefit can be significant.
By staying aware of the income thresholds and credit amounts, you’ll know where you stand and what to expect. Don’t leave this credit unclaimed—it can be a meaningful source of financial support during tax season.
