The Earned Income Tax Credit (or “EITC” for short) is an excellent option for low-income families and individual filers to utilize for a larger return and overall cash back from the government when you file your taxes.
While fairly straightforward to understand, many tax filers do not understand how the EITC works, and if they qualify. It’s estimated that nearly 1/5 of qualified applicants don’t use the credit.
The American Tax Cuts and Jobs Act changed some of the fundamental ways we determine tax rates and credits, but these changes will not have a huge impact on the earned income credit overall.
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What is the Earned Income Tax Credit?
The earned income tax credit was developed to help working individuals and families with lower incomes supplement their wages and offset the burden of social security.
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Because this benefit is a “credit,” this means you actually get more money credited back on your return (IE in your pocket!), which is much more desirable than a deduction.
Bottom line – if you make under the threshold amounts in the table below and qualify, you will get a specific amount of money credited back on your tax return!
How Do I Qualify for the Earned Income Tax Credit?
The EITC is available for both single-filing individuals and families. All family members and filers must have a valid Social Security number and be between the ages of 25 and 65 to qualify.
The credit is available for self-employed workers, hourly workers, and families with joint incomes.
What can be confusing about this credit is distinguishing between “earned” income and other types of income. The IRS will recognize that standard wage income, hourly earnings, and tips are included in your calculation of earned income.
Certain incomes, such as Child support, retirement income, social security payments, unemployment benefits, and alimony, do not count towards your earned income credit.
Note – if you earn more than $11,000 in investment income, you will not qualify for the EITC.
The specific conditions for qualification depend on your income level, family size, and specific requirements that may make you ineligible, such as investment income.
What is the Maximum Income to Qualify for Earned Income Credit?
The first thing to determine if you qualify for the earned income tax credit is your income. Based on the 2025 specifications for the earned income tax credit table limits, the following will apply to your tax filing:
You can use tax preparation software like TurboTax Online to claim the EITC Credit. When you file your taxes online, the tax preparation software or service will guide you through the process.
We recommend filing your taxes online this tax season. They will ask you questions to determine your eligibility for the EITC and calculate the credit amount for you.
