EITC — Earned Income Tax Credit
A refundable federal tax credit for working individuals and families with low-to-moderate income.
Official source: irs.gov
The Earned Income Tax Credit (EITC) is a special tax credit from the government for people who work and have low to moderate incomes. It helps reduce the amount of tax you owe, and can even give you a refund if you don't owe any tax! For tax year 2024, some families with three or more children could get around $7,830 back. The amount of EITC you get depends on things like how much money you earn, whether you have children, and how many children you have. To get the EITC, you need to file a tax return, even if you don't usually have to. One common thing to know is that if your income is too high, or if you don't have any earned income (like wages from a job), you might not qualify. It's important to make sure all your information is correct when you file so you get the most credit you're due. You can use the IRS EITC Assistant or BenefitKarma's tools to help you figure out how much you might get. See also: <a href="/glossary/federal-poverty-level">Federal Poverty Level</a>.
In real life
- Sarah, a single mom working part-time, used the EITC to help pay for her kids' school supplies and clothes this year.
- John and Maria, a married couple with two children, got a bigger tax refund because of the EITC, which helped them fix their car.
- When Lily started her first full-time job, she learned about the EITC and got money back at tax time, which she saved for a down payment on an apartment.
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Frequently asked questions about EITC
What is Earned Income Tax Credit (EITC)?+
A refundable federal tax credit for working individuals and families with low-to-moderate income, with credit amounts that increase with earned income up to a maximum then phase out — designed to incentivize and reward work. The maximum EITC for tax year 2024 is approximately $7,830 for families with three or more qualifying children.
Who qualifies for EITC?+
Eligibility rules vary. Use BK's free Benefit Eligibility Screener to see if you may qualify based on your situation.
How do I apply for EITC?+
BenefitKarma's free Benefit Eligibility Screener can point you to the right application path.
Where can I get help?+
Use BenefitKarma's free Benefit Eligibility Screener to see what programs you may qualify for. The Find Benefits tool tool also lets you browse programs by state.
Source: irs.gov