Millions of Americans could see a bigger tax refund in 2025 thanks to the Earned Income Tax Credit (EITC). This federal tax benefit is designed to support low- and middle-income workers by reducing their tax bill – and in many cases, leading to a significant refund.
For the 2024 tax year (filed in 2025), the maximum EITC has increased to $7,830 for qualifying taxpayers with three or more children. This is great news for families struggling with rising costs, as it puts more money back into their pockets.
Who Qualifies for the $7,830 EITC?
To claim the EITC, you must meet certain income and eligibility requirements. The credit is available to workers with or without children, though the highest amounts go to those with dependents.
Here’s a breakdown of the maximum credits based on family size:
- No children – Up to $632
- One child – Up to $4,213
- Two children – Up to $6,960
- Three or more children – Up to $7,830
To be eligible, your earned income must be within these limits:
-
Single or Head of Household
- No children: $18,591
- One child: $49,084
- Two children: $55,768
- Three or more children: $59,899
-
Married Filing Jointly
- No children: $25,511
- One child: $56,004
- Two children: $62,688
- Three or more children: $66,819
Additionally, investment income must be $11,600 or less for the 2024 tax year. You’ll also need a valid Social Security number, be a U.S. resident or citizen, and not file as “Married Filing Separately.”
How to Claim the EITC?
To receive the credit, you must file a federal tax return – even if you don’t owe taxes. The IRS offers free tax preparation assistance through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs for those who qualify.
For families with children, Schedule EIC must be completed along with your tax return to claim the credit. If you’re eligible, the credit either reduces the taxes you owe or increases your refund.
What’s Changing for the 2025 Tax Year?
Looking ahead, the IRS has announced that EITC amounts will increase for the 2025 tax year (filed in 2026). The new maximum credit amounts are:
- No children: $649
- One child: $4,328
- Two children: $7,152
- Three or more children: $8,046
These adjustments reflect annual inflation increases and will provide even more relief to working families.
Bottom Line: Don’t Miss Out on Free Money!
The Earned Income Tax Credit is one of the most valuable tax benefits available, yet millions of eligible taxpayers miss out every year because they don’t file a return. If you qualify, be sure to claim the credit and get the money you deserve.
For more details, visit the IRS website or consult a tax professional to ensure you maximize your refund.
