What is the Earned Income Tax Credit?
Editor’s Note: Read more about the Earned Income Tax Credit (EITC), a tax credit where 25 million eligible workers and families receive a collective $60 billion in EITC funds.
What is the EITC?
Wondering what the EITC is? The Earned Income Tax Credit is a tax credit that helps low to medium income working taxpayers. The EITC is subtracted from what you owe on your tax return and usually leads to a larger refund or less tax to pay. To claim the EITC, a taxpayer must have earned income from working. But not all types of income qualify. Read about qualifying income for the EITC.
What will my Earned Income Tax Credit look like?
If you qualify for an EITC, your tax credit changes depending on the number of qualifying children you have and your income.
For 2021 tax returns, regardless of filing status, if you qualify, your maximum Earned Income Tax Credit will be:
- $1,502, no children
- $3,618, one child
- $5,980, two children
- $6,728, three or more children
Still questioning “What is the EIC Credit?” We can help.
Still have questions about “What is the EIC?” Claiming the EIC on your taxes is easier with the help of H&R Block! It just requires a few extra steps when filling out your return.
If you’re filing in an office, the experts at H&R Block can look at your personal situation and help determine if you qualify for this credit.
Was this topic helpful?