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. Even people who owe no federal income tax can receive a refund through the EITC.
→ Use the IRS EITC Assistant or BenefitKarma's tools to estimate your credit.
Also known as
Related terms
- Federal Poverty Level
An income measure published annually by the U.S. Department of Health and Human Services (HHS), used to determine eligibility for dozens of federal benefit programs.
- SNAP
The nation's largest food assistance program (formerly known as Food Stamps) that provides monthly benefits via EBT card to help low-income individuals and families purchase groceries.
- TANF
A federal block grant program that provides states with funding for cash assistance, childcare, job training, and other supports for low-income families with children.
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Frequently asked questions about EITC
What is the Earned Income Tax Credit?+
The Earned Income Tax Credit (EITC) is a special tax refund from the federal government. It helps working individuals and families who make low to moderate incomes. The amount of money you get back depends on how much you earn. It's designed to encourage and reward people for working.
Who can get the Earned Income Tax Credit?+
Many working individuals and families with low to moderate incomes can get the EITC. To qualify, you must have earned income from a job or from self-employment. The credit amount changes based on your income, how many children you have, and your filing status. Income limits vary each year.
How do I claim the Earned Income Tax Credit?+
To claim the EITC, you need to file a federal income tax return. Even if you don't owe any tax, you still need to file to get this credit. You must fill out a Schedule EIC and attach it to your tax return if you have a qualifying child. Be sure to check all the rules to make sure you qualify.
How much money can I get from the EITC?+
The amount you can get from the EITC changes each year and depends on your income, how many children you have, and your filing status. The credit increases as you earn more, up to a certain point, and then starts to go down. It can be a significant refund for eligible families.