How the EITC works
The EITC is refundable, which means the credit can be larger than your tax bill. If you owe $500 and qualify for a $3,000 credit, your tax bill is brought down to zero, and you get the $2,500 difference back as a refund.
Note: You need earned income to qualify for this credit.
Who qualifies for the earned income credit
To be eligible for the EITC, you generally must:
- Have earned income from a job or self-employment.
- Have a valid Social Security number (SSN) for you, your spouse, and any qualifying children.
- Have an adjusted gross income (AGI) under the limit for your filing status and number of kids.
- Have investment income at or below the cap ($12,200 for 2026 and $11,950 for 2025).
- Have resided in the US more than half the year.
You generally can’t claim the EITC if you file married filing separately (MFS) or you’re someone else’s qualifying child. Workers with no children can still qualify if they’re at least 25 and under 65, though the maximum is $664 for 2026 ($649 for 2025).
An exception exists for a MFS taxpayer who can claim the EITC if they had a qualifying child who lived with them more than half the year and they either didn’t live with their spouse during the last six months of the year, or are legally separated and didn’t live together by year-end.
EITC income limits and maximum credit
For tax year 2026:
| Qualifying children | Max AGI: Single/HOH/QSS | Max AGI: Married Filing Jointly | Max credit |
|---|---|---|---|
| 0 | $19,540 | $26,820 | $664 |
| 1 | $51,593 | $58,863 | $4,427 |
| 2 | $58,629 | $65,899 | $7,316 |
| 3 or more | $62,974 | $70,244 | $8,231 |
For tax year 2025:
| Qualifying children | Max AGI: Single/HOH/QSS | Max AGI: Married Filing Jointly | Max credit |
|---|---|---|---|
| 0 | $19,104 | $26,214 | $649 |
| 1 | $50,434 | $57,554 | $4,328 |
| 2 | $57,310 | $64,430 | $7,152 |
| 3 or more | $61,555 | $68,675 | $8,046 |
Source: Internal Revenue Service (1, 2)
Self-employment and gig income counts
Self-employment income for the EITC includes net earnings from:
- Freelance
- Gig work
- Rideshare
- Delivery
- Small business activities
Qualifying child requirements
To be included in this credit, a qualifying child must pass four tests:
- Relationship
- Age
- Residency
- Joint return
Generally, only the custodial parent can claim the EITC for a child, even if the other parent claims the dependent.
When to expect your EITC refund
If you claim the EITC, the Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold your entire refund until mid-February to combat fraud. Filing early won’t impact the timeline for receiving your refund.
How to claim the EITC
To claim the EITC, file Form 1040 and attach Schedule EIC if you have qualifying children. Use the IRS EITC Assistant or tax software to confirm your exact amount.
