It is important to note, the IRS may delay your tax refund if you claim the EITC. To avoid this potential delay, check your eligibility with a tax expert. Don’t miss out on putting more of your money back into your pockets.
Earned Income Credit is a tax credit for low to moderate-income workers. The EIC credit is calculated based on your family’s earned income and how many qualifying children you have as well as your filing status. Each qualifying child up to 3 increases the amount of the EIC you are eligible for.
So, you may be asking “How much for one child?” or “How much do you get back per child?” This amount changes from year to year and there is a sweet spot for your earned income limits that allows you to claim the full credit. This amount ranges from roughly $21,000 to $59,000 for married filing joint and $16,000 to $53,000 for all other filling statuses, and depending on the number of children claimed the credit goes up by totally different amounts.
To qualify for the maximum annual credit you need to not exceed the particular income limitation for that specific year.
No qualifying children: $560
1 qualifying child: $3,733
2 qualifying children: $6,164
3 or more qualifying children: $6,935
| Children or Relatives | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
|
Zero |
$16,480 |
$22,610 |
|
One |
$43,492 |
$49,622 |
|
Two |
$49,399 |
$55,529 |
|
Three |
$53,057 |
$59,187 |
No qualifying children: $1,502
1 qualifying child: $3,618
2 qualifying children: $5,980
3 or more qualifying children: $6,728
| Children or Relatives | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
|
Zero |
$21,430 |
$27,380 |
|
One |
$42,158 |
$48,108 |
|
Two |
$47,915 |
$53,865 |
|
Three |
$51,464 |
$57,414 |
No qualifying children: $538
1 qualifying child: $3,584
2 qualifying children: $5,920
3 or more qualifying children: $6,660
| Children or Relatives | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
|
Zero |
$15,820 |
$21,710 |
|
One |
$41,756 |
$47,646 |
|
Two |
$47,440 |
$53,330 |
|
Three |
$50,594 |
$56,844 |
No qualifying children: $529
1 qualifying child: $3,526
2 qualifying children: $5,828
3 or more qualifying children: $6,557
| Children or Relatives | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
|
Zero |
$15,570 |
$21,370 |
|
One |
$41,094 |
$46,884 |
|
Two |
$46,703 |
$52,493 |
|
Three |
$50,162 |
$55,952 |
EIC is refundable, which means that even if you do not pay any taxes in during the year (i.e. zero) and you qualify for EIC, you can still get a big refund. In other words, you can get more back than you paid in. Lastly be careful about not filling jointly if you are married it can cause issues with trying to claim the EIC.
For further information please use the EITC tables provided by the IRS.
To qualify for the earned income credit, you must meet certain requirements related to your income (earned vs unearned), filing status (single, head of household, married filing jointly, married filed separately) and whether you have qualifying children.
To qualify for the EIC, you must have earned income from wages, salaries, or self-employment. Your earned income and adjusted gross income (AGI) must be below certain amounts, which vary depending on your filing status and number of qualifying children. These amounts are updated each year for inflation.
Income that you worked for is considered earned, whether that be from an employer or if you are self employed, running a side hustle, or are considered a small business owner.
To qualify for the EIC, you must file a tax return, even if you are not required to do so based on your income level. You must also be a U.S. citizen or resident alien with a valid social security number or tax identification number for the entire tax year.
If you have qualifying children, you must meet additional requirements related to their relationship to you, age, and residence. A qualifying child must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these individuals (for example, your grandchild). The child must also be under the age of 19 (or under the age of 24 if a full-time student) and must have lived with you for more than half the year.
In addition to the above requirements, you must also meet certain rules related to your tax filing status, investment income, and student status. You may not be eligible for the EIC if you are claimed as a dependent on someone else’s tax return, if you have certain types of investment income, or if you are a full-time student.
It is important to note that these are just general guidelines and there may be additional requirements or restrictions that apply. You can find more detailed information about the EIC and its eligibility requirements on the IRS website or by speaking with a tax professional.
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