The IRS is set to roll out updated Earned Income Tax Credit (EITC) amounts for the 2025 tax year, offering eligible workers a chance to claim thousands of dollars in tax credits. Designed to help low-to-moderate-income earners, the EITC can reduce the amount of taxes owed—or even boost refunds significantly.
What is the EITC and Why Does it Matter?
The Earned Income Tax Credit is a refundable tax credit, meaning if the credit exceeds the tax you owe, the IRS sends you the difference as a refund. Millions of Americans qualify for this credit every year, but many miss out simply because they don’t claim it.
For 2025, the IRS has adjusted the maximum credit amounts to keep up with inflation. Here’s how much you could receive based on the number of qualifying children:
- 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
Do You Qualify for the EITC?
To be eligible, your income must fall below specific thresholds. Here’s a quick breakdown of the maximum income limits based on your filing status:
For Single or Head of Household Filers:
- No children: $19,104
- One child: $50,434
- Two children: $57,310
- Three or more children: $61,555
For Married Couples Filing Jointly:
- No children: $26,214
- One child: $57,554
- Two children: $64,430
- Three or more children: $68,675
In addition, your investment income (such as dividends or stocks) must be $11,950 or less to qualify.
Who Counts as a “Qualifying Child”?
A qualifying child must meet these conditions:
- Be your biological, adopted, stepchild, foster child, sibling, or a descendant (like a grandchild or niece/nephew).
- Be under 19 years old (or under 24 if a full-time student).
- Have lived with you in the U.S. for at least six months of the year.
- Not file a joint return with someone else (unless they’re filing only to get a refund).
How to Claim Your EITC in 2025
Even if you don’t owe any taxes, you must file a tax return to get the EITC. The IRS recommends using Form 1040 or 1040-SR, along with Schedule EIC if you have children. Filing electronically and opting for direct deposit can speed up your refund.
If you’re unsure whether you qualify, the IRS has a free EITC Assistant Tool to check eligibility and estimate your credit.
Don’t Leave Money on the Table!
The EITC is one of the most valuable tax credits available, yet every year, millions of eligible Americans fail to claim it. With potential refunds reaching over $8,000, checking your eligibility could mean a major financial boost in 2025. Make sure to file your taxes on time and claim every dollar you’re entitled to!
