The Earned Income Tax Credit is one of the largest anti-poverty programs in the U.S. and one of the most valuable tax credits available. It provides up to $7,830 to working families — and many eligible workers don’t claim it.
2026 EITC: Maximum Amounts
| Number of Qualifying Children | Maximum Credit | Max AGI (Single) | Max AGI (Married Filing Jointly) |
|---|---|---|---|
| 0 | $632 | $18,591 | $25,511 |
| 1 | $4,213 | $49,084 | $56,004 |
| 2 | $6,960 | $55,768 | $62,688 |
| 3 or more | $7,830 | $59,899 | $66,819 |
Investment income must be $11,600 or less to qualify.
EITC Eligibility Requirements
Income Requirements
- You must have earned income (wages, salary, tips, self-employment income)
- Your adjusted gross income must be below the limits shown above
- Investment income must be $11,600 or less
Personal Requirements
- Valid Social Security number for you, your spouse (if filing jointly), and qualifying children
- U.S. citizen or resident alien for the entire year
- Cannot be claimed as a dependent or qualifying child of another person
- Cannot file Form 2555 (foreign earned income)
- Filing status cannot be married filing separately
Qualifying Child Requirements
Each qualifying child must:
- Be your son, daughter, stepchild, foster child, sibling, or descendant of any of these
- Be under age 19 (or under 24 if a full-time student)
- Live with you in the U.S. for more than half the year
- Have a valid Social Security number
- Not file a joint return (unless only to claim a refund)
EITC by Income Level
The EITC phases in as income rises, reaches a maximum plateau, then phases out:
Single Filer With 2 Children
| Earned Income | EITC Amount |
|---|---|
| $5,000 | $2,000 |
| $10,000 | $4,000 |
| $15,000 | $6,164 |
| $20,000 | $6,960 |
| $25,000 | $6,960 |
| $30,000 | $6,140 |
| $35,000 | $5,090 |
| $40,000 | $4,040 |
| $45,000 | $2,990 |
| $50,000 | $1,940 |
| $55,000 | $300 |
| $55,768 | $0 |
Why Millions of Workers Miss the EITC
The IRS estimates that roughly 20% of eligible workers don’t claim the EITC, leaving billions of dollars unclaimed each year. Common reasons:
- Don’t know it exists — especially workers without children (eligible for up to $632)
- Don’t file a tax return — many low-income workers aren’t required to file but must do so to receive the EITC
- Income fluctuates — workers who were ineligible in past years may qualify now
- Complex rules — the eligibility requirements can be confusing, especially for non-traditional families
- Fear of audit — the EITC has a higher audit rate than many other provisions, which can discourage claims
EITC vs. Child Tax Credit
| EITC | Child Tax Credit | |
|---|---|---|
| Maximum (per child) | $7,830 total (3+ kids) | $2,000 per child |
| Refundable | Fully refundable | Up to $1,700 refundable |
| Income phase-out starts | ~$20,000–$21,000 | $200,000 (single) |
| Available without children | Yes ($632 max) | No |
| Age limit for children | Under 19 (24 if student) | Under 17 |
Many families qualify for both credits, which can result in significant refunds.
How to Claim the EITC
- File a federal tax return — even if your income is low enough that you’re not required to file
- Use Free File — if your income is under $84,000, you can file for free through IRS Free File
- Complete Schedule EIC if you have qualifying children
- Use the IRS EITC Assistant tool to check eligibility
- Consider VITA — Volunteer Income Tax Assistance provides free tax preparation for qualifying individuals
State EITC Programs
Many states offer their own earned income credits, amplifying the federal benefit:
| State | State EITC (% of federal) |
|---|---|
| California | Up to 85% |
| Colorado | 38% |
| Connecticut | 30.5% |
| Illinois | 20% |
| Maryland | 45% (refundable) |
| Massachusetts | 40% |
| Michigan | 30% |
| Minnesota | Varies (up to 45%) |
| New Jersey | 40% |
| New York | 30% |
| Oregon | 12% |
| Vermont | 38% |
| Washington | $300+ (Working Families Tax Credit) |
| Wisconsin | 4%–34% |
Combined with the federal EITC, a family with 2 children in New York could receive over $9,000 in total earned income credits.
EITC History: Maximum Credit Over Time
The EITC was created in 1975 and has grown substantially. Congress periodically expands the credit for families with multiple children.
| Year | No Children | 1 Child | 2 Children | 3+ Children |
|---|---|---|---|---|
| 2026 | $632 | $4,213 | $6,960 | $7,830 |
| 2025 | $632 | $4,213 | $6,960 | $7,830 |
| 2024 | $632 | $4,213 | $6,960 | $7,830 |
| 2023 | $600 | $3,995 | $6,604 | $7,430 |
| 2022 | $560 | $3,733 | $6,164 | $6,935 |
| 2021 | $1,502 | $3,618 | $5,980 | $6,728 |
| 2020 | $538 | $3,584 | $5,920 | $6,660 |
2021 temporarily expanded the credit for workers without children as part of COVID relief.
EITC and Self-Employment
Self-employed workers and gig workers (1099-NEC, 1099-K) can claim the EITC, but the calculation is slightly different:
- Net self-employment income = gross receipts minus business expenses
- You must pay self-employment tax on net SE income (15.3% on the first $176,100 in 2026)
- Net SE income counts as earned income for EITC purposes
- A net loss from self-employment reduces your EITC-qualifying income
Example: A freelancer with $35,000 in gross income and $10,000 in business expenses has $25,000 in net SE income. That $25,000 is their earned income for EITC calculation.
EITC Audit Risk
The EITC has a higher audit rate than most other tax provisions — about 2-3x the average — because errors and fraud are common. The most audited issues:
| Risk Factor | What the IRS Checks |
|---|---|
| Qualifying child residency | Did child live with you 6+ months? |
| Relationship test | Is the child actually your dependent? |
| Filing status | Married filing separately is ineligible |
| Investment income | Must be $11,600 or less |
| Self-employment income | Matches Form 1099 and Schedule C |
The best defense is accurate records: school enrollment letters, medical records, utility bills showing the child’s address, and clear documentation of your earned income.
Related: Federal Income Tax Brackets | Tax Deductions and Credits | Average Income by State | Minimum Wage by State
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