Earned Income Credit (EITC)
A refundable tax credit for low- to moderate-income workers. The amount depends on income, filing status, and number of qualifying children — worth up to $7,830 in 2025 with three or more children.
The Earned Income Tax Credit (EITC or EIC) is one of the largest anti-poverty programs in the US tax code. It is a refundable credit, meaning it can result in a refund even if you owe no income tax. The credit amount depends on earned income, filing status, and the number of qualifying children.
For 2025, the maximum credit ranges from approximately $632 for taxpayers with no qualifying children to $7,830 for those with three or more qualifying children. The credit increases with income up to a threshold, then plateaus, and eventually phases out at higher income levels.
To qualify, you must have earned income (wages, salaries, or self-employment income), a valid Social Security number, and meet AGI limits that vary by filing status and number of children. Investment income must be $11,600 or less. The EITC is frequently underclaimed, especially by workers without children, so it is worth checking eligibility each year.
Related Terms
Child Tax Credit
A tax credit worth up to $2,200 per qualifying child under age 17 for 2025 and 2026 (raised from $2,000 by OBBBA). Up to $1,700 is refundable as the Additional Child Tax Credit, meaning you can receive it even if you owe no tax.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
Tax Refund
Money returned to you by the IRS when your total tax payments (withholding + estimated payments + refundable credits) exceed your tax liability for the year.
Filing Status
Your tax classification based on marital and family situation — Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.