The Earned Income Tax Credit (EITC) is a tax credit for low- and moderate-income working individuals and families. The EITC reduces the amount of tax you owe, and may also result in a refund.
To qualify for the EITC, you must meet certain requirements, including:
- You must have earned income from working.
- Your investment income must be below a certain amount.
- You must meet certain residency requirements.
- You must file a tax return.
The maximum amount of EITC you can receive depends on your filing status, the number of qualifying children you have, and your earned income.
| Filing Status | Maximum EITC (2023) |
|---|---|
| Single, Head of Household, or Widowed | $600 |
| Married Filing Jointly | $3,995 |
| Married Filing Jointly with 3 or More Qualifying Children | $7,430 |
| Earned Income | Maximum EITC (2023) |
|---|---|
| $0 – $17,640 | $600 |
| $17,641 – $46,560 (with 1 qualifying child) | $3,995 |
| $46,561 – $52,918 (with 2 qualifying children) | $6,604 |
| $52,919 – $56,838 (with 3 or more qualifying children) | $7,430 |
| Investment Income | Maximum EITC (2023) |
|---|---|
| $0 – $11,000 | $600 |
| $11,001 – $11,600 | Reduced EITC |
| $11,601 or more | No EITC |
Additional Rules
- You cannot claim the EITC if you are claimed as a dependent on someone else’s tax return.
- You must have a valid Social Security number.
- You must meet certain residency requirements.
How to Claim the EITC
You can claim the EITC by filing a tax return. You can use the EITC Assistant tool on the IRS website to help you determine if you qualify for the EITC and to calculate the amount of your credit.
Benefits of the EITC
The EITC can help you save money on your taxes and increase your refund. The EITC can also help you qualify for other government benefits, such as the Child Tax Credit and the Supplemental Nutrition Assistance Program (SNAP).
The EITC is a valuable tax credit for low- and moderate-income working individuals and families. If you meet the eligibility requirements, you should claim the EITC on your tax return.