Understanding the earned income tax credit (EITC) can feel overwhelming, especially with the many eligibility rules and income thresholds that come with it. In this guide, we break it down in simple terms. We’ll explain what the credit is, why millions of workers qualify, and how it can put more money back in the pockets of low-to-moderate income earners.
By the end, you’ll know which workers can qualify, how to navigate the eligibility tests, what documentation is required, and how to make sure you receive the full credit you’re entitled to.
The earned income tax credit (EITC) is a federal refundable tax credit designed to help low- and moderate-income workers. If you qualify, the credit reduces the amount of tax you owe on your personal tax return. And if your credit is larger than the amount of tax you owe, the IRS will refund you the difference—meaning it can increase your take-home income even if you owe nothing.
To claim the credit, taxpayers must file a federal tax return, even if they aren’t otherwise required to file.
For the tax year 2026 (taxes that are filed in 2027), the maximum earned income tax credit amounts are $664, $4,427, $7,316, and $8,231, depending on filing status and how many qualifying children you claim.
Below is a chart that shows the EITC maximum credit amounts and the income limits for 2026.
| Number of Children | Maximum Earned Income Tax Credit | Max Income: Single or Head of Household Filers | Max Income: Married Joint Filers |
|---|---|---|---|
| 0 | $664 | $19,540 | $26,820 |
| 1 | $4,427 | $51,593 | $58,863 |
| 2 | $7,316 | $58,629 | $65,899 |
| 3 or more | $8,231 | $62,974 | $70,224 |
To figure out who qualifies for the EITC, the IRS looks at several factors. Here’s a breakdown of the main requirements you’ll need to meet.
To qualify for the EITC without any qualifying children, you must be between ages 25 and 65. If you're filing jointly and do not have a qualifying child, only one spouse needs to meet this age requirement.
Workers who do have qualifying children are not subject to these age limits.
Your investment income must be below a certain threshold to qualify for the EITC. This includes income from interest, dividends, capital gains, and other investment-related sources.
Separated couples may still qualify for the EITC, but there are specific rules. Typically, married couples must file jointly to claim the credit. However, individuals who are legally separated or who did not live with their spouse for the last six months of the year may qualify while filing as “married filing separately.”
Your child must also have lived with you for more than half of the year.
Taxpayers with foreign-earned income are generally not eligible for the EITC if they claim the Foreign Earned Income Exclusion or file Form 2555. The EITC supports workers whose income is taxed by the United States, so excluded income usually disqualifies taxpayers.
In addition to the rules above, workers must also meet a few general eligibility standards. You must have at least $1 of earned income during the year and cannot be claimed as a dependent or qualifying child on another taxpayer’s return. If you’re claiming the EITC without a qualifying child, you also need to have lived in the United States for more than half the year.
For those claiming the credit with qualifying children, the IRS uses four tests to determine if a child meets the criteria.
For the 2026 tax season, taxpayers who file electronically and choose direct deposit typically receive their refund around mid-February, assuming the return is error-free. This timing is set by law. Paper-filed returns may take significantly longer.
To claim the EITC, simply file your tax return (Form 1040 or Form 1040-SR). Tax software can walk you through the steps, often at no cost.
If you claim qualifying children, you will also need to complete Schedule EIC, which includes details such as your child’s Social Security number and birth year.
Yes, workers that don’t have qualifying children can still receive a smaller EITC amount. However, they still need to meet requirements such as income, age, and any other filing requirements.
The best ways to avoid mistakes are ensuring accuracy in income, filing status, and child eligibility. Typical errors are with residency requirements, relationship rules, and just incorrectly reporting income. Using tax software or a tax professional can help you avoid any mistakes.
In this guide, we explored what the earned income tax credit is, who qualifies, and why this credit remains a powerful financial tool for low- to moderate-income workers and their families. By reducing tax burdens and potentially generating a refund, the EITC helps millions of households improve financial stability each year.