The Earned Income Tax Credit (EITC) remains one of the most significant tax breaks for low- and moderate-income workers. Every year, millions of Americans rely on this credit to boost their tax refunds. But if you’re counting on the EITC in 2025, pay close attention—new income limits could determine whether you qualify.
What is the EITC and Why Does It Matter?
The EITC is a refundable tax credit, meaning that even if you don’t owe taxes, you can still receive money back. It’s designed to help working individuals and families by reducing their tax burden and increasing their refund. The amount you can receive depends on your income, filing status, and number of qualifying children.
For the 2025 tax year (which will be filed in early 2026), the maximum credit amounts have increased slightly:
- No Children: Up to $649
- One Child: Up to $4,328
- Two Children: Up to $7,152
- Three or More Children: Up to $8,046
However, not everyone will qualify. Your income must be below certain thresholds to claim the EITC.
EITC Income Limits for 2025
To receive the EITC, your earned income and adjusted gross income (AGI) must be below the following limits:
Single, Head of Household, or Widowed Filers:
- No Children: Less than $19,104
- One Child: Less than $50,434
- Two Children: Less than $57,310
- Three or More Children: Less than $61,555
Married Filing Jointly:
- No Children: Less than $26,214
- One Child: Less than $57,554
- Two Children: Less than $64,430
- Three or More Children: Less than $68,675
If your income is even a dollar over these limits, you won’t qualify for the credit. That’s why it’s crucial to know where you stand before filing your taxes.
Other Requirements to Claim the EITC
Beyond income limits, the IRS has several other rules for EITC eligibility:
- Valid Social Security Number: You, your spouse (if filing jointly), and any children listed on your return must have valid Social Security numbers by the tax deadline.
- Filing Status: You cannot claim the EITC if you file as “Married Filing Separately.”
- Investment Income: Your total investment income must be $11,950 or less for the year.
- Citizenship: You must be a U.S. citizen or resident alien for the entire tax year.
- Foreign Income: If you file Form 2555 (Foreign Earned Income), you are not eligible for the EITC.
- Age Requirement: If you don’t have a qualifying child, you must be at least 25 years old but under 65 at the end of the tax year.
Who Counts as a “Qualifying Child”?
If you have children, they must meet the following criteria to be counted for EITC purposes:
- Relationship: The child must be your son, daughter, stepchild, foster child, sibling, half-sibling, or a descendant (like a grandchild or niece/nephew).
- Age: The child must be under 19 at the end of the year (or under 24 if a full-time student). If they are permanently disabled, there is no age limit.
- Residency: The child must have lived with you in the U.S. for more than half the year.
- Tax Filing: The child cannot file a joint tax return unless it’s solely to claim a refund.
How to Claim the EITC
Even if you don’t normally file a tax return, you must file one to claim the EITC—the IRS won’t automatically send it to you. Filing electronically and using tax preparation software can help ensure accuracy and avoid delays.
If you’re unsure about your eligibility, consider using the IRS EITC Assistant on their website or consulting a tax professional.
Final Thoughts
The EITC can put thousands of dollars back into the pockets of eligible taxpayers, but it’s important to stay within the income limits and meet all the IRS requirements. With tax season approaching, now is the time to check your earnings, review your filing status, and ensure you don’t miss out on this valuable credit.
