The Earned Income Tax Credit (EITC): What it is, how to qualify, and 2023-2024 credit amounts

As far as tax credits go, you may not know the Earned Income Tax Credit (also known as EIC or EITC) on a by-name basis, but it’s a good one to get to know. Why? For taxpayers, the federal EITC is highly valuable, but shouldn’t be one to miss if you’re eligible so you can keep more of your hard-earned money.

We’ll guide you through EITC specifics, including:

1. What is the Earned Income Tax Credit?
2. The Earned Income Credit amounts 
3. How much is the Earned Income Tax Credit worth?
4. Income limits for the EIC
5. What is earned income?
6. How to qualify for the EITC
7. What disqualifies you from the Earned Income Credit?
8. EIC FAQs

What is the Earned Income Tax Credit?

In short, the Earned Income Tax Credit (EITC or EIC) is a refundable tax credit created to benefit low-and moderate-income working families. If “refundable” is a new term, it means you can lower your taxes by the corresponding credit value. You can receive money back if your tax liability is zero and the credit exceeds what you owe the IRS.

To qualify for this potentially highly valuable credit, you must earn an income of at least $1, and your total income (including investment income) must be below a certain amount. Understanding who qualifies for the Earned Income Tax Credit can be really tricky, so it’s important to have trusted tax expertise on your side. Don’t sweat it, though; we’ll outline every detail below. And when it comes time to file, Block is here to help you get every dollar you deserve!

The Earned Income Credit amounts

The criteria for claiming this beneficial credit are complex, and getting the details right is important, as it can mean more money in your pocket. To give you an idea of how much, the max Earned Income Credit amounts are worth up to $7,430 (for 2023) and $7,830 (for 2023), depending on your filing status, amount of Adjusted Gross Income (AGI), type(s) of income, and number of qualifying children.

How much is the Earned Income Tax Credit worth?

Taking the time to check the Earned Income Credit eligibility can pay off, as the tax benefit can be worth up to $7,830 (for 2023) as mentioned above. One of the larger factors of how much the Earned Income Tax Credit may be worth is based on the number of qualifying children.

Here’s a brief overview of the value of the EIC, based on qualifying children:

• No qualifying children: $632
• 1 qualifying child: $4,213
• 2 qualifying children: $6,960
• 3 or more qualifying children: $7,830

To determine the actual credit amount, head to an article that can help you determine your EIC amount: Earned Income Credit.

Income limits for the EIC

An important qualifier for the EIC is your Adjusted Gross Income level. You can’t claim the Earned Income Credit if your AGI exceeds the income limits. To see if you might qualify, use this table to find the maximum credit amounts for tax year 2023 (taxes filed in 2023) and tax year 2023 (taxes filed in 2025) based on your AGI.

Earned Income Tax Credit table (2023)

This 2023 EIC is claimed on taxes due in 2023. View the credit amounts based on AGI and filing statuses.

Number of qualifying children	Maximum EITC credit allowed	AGI Limits for Filing Statuses: Single, Head of Household, or Qualifying Surviving Spouse	AGI Limits for Filing as Married Filing Jointly
No children	$600	$17,640	$24,210
One	$3,995	$46,560	$53,120
Two	$6,604	$52,918	$59,478
Three or more	$7,430	$56,838	$63,398

Earned Income Tax Credit table (2024)

Browse through the EIC maximum credit amounts based on AGI and filing statuses for the 2024 tax year (for taxes filed in 2025).

Number of qualifying children	Maximum EITC credit amount	AGI Limits for Filing Statuses: Single, Head of Household, or Qualifying Surviving Spouse	AGI Limits for Filing as Married Filing Jointly
No children	$632	$18,591	$25,511
One	$4,213	$49,084	$56,004
Two	$6,960	$55,768	$62,688
Three or more	$7,830	$59,899	$66,819

Investment income limits

You can be eligible for the Earned Income Credit even if you have both earned and investment income. But be sure to check the investment income limits. The Internal Revenue Service (IRS) states that if your investment income exceeds $11,000 (for tax year 2023) and $11,600 (for tax year 2024), you won’t qualify to take the EITC. As a refresher, investment income includes:

• Interest income
• Dividend income
• Capital gains
• Royalties
• Rental income
• Passive activity income

What is earned income?

As the name suggests, you need to earn income to meet the qualifications for the Earned Income Credit. Unearned income like interest, dividends, inheritances, and other income from social programs don’t qualify as earned income.

Earned income sources

This list of earned income sources can help you better understand what earned income is:

• Salary, tips, wages, and other taxable employee pay
• Net earnings from self-employment
• Non-taxable combat pay you elect to include in income
• Union strike and lockout benefits
• Certain disability benefits

(Note: If you’re in the military with nontaxable combat pay, you can elect to include the combat pay in earned income to calculate the EIC.)

Income that’s not considered “earned-income”

The types of income that don’t qualify include passive income or income you aren’t actively generating on your own, such as:

• Alimony
• Child support
• Interest and dividends
• Pay earned while incarcerated
• Retirement income including pensions, and annuities
• Social Security payments
• Unemployment benefits

How to qualify for the Earned Income Tax Credit

We’ve covered income limits, but there’s more to Earned Income Credit eligibility. It’s a lot so hang in there! As you read through the details, you’ll get a better idea of what disqualifies you from the Earned Income Credit.

Earned Income Credit IRS eligibility is bucketed into two categories: eligibility without and with children. Follow along as we guide you through each scenario.

Earned Income Tax Credit eligibility without children

As a taxpayer, you might think that you don’t have Earned Income Tax Credit eligibility unless you have children. Luckily, that’s not the case. The IRS allows you to claim the credit, but there are a few conditions to meet.

You:

• Can’t be a dependent of another taxpayer
• Can’t be a qualifying child of another person

You (and your spouse if filing jointly) must:

• Live in the United States for more than half the year and
• Be at least 25 but under age 65

Earned Income Credit qualifications with children

Generally, the more children you have, the higher the credit you could receive. But, to take the EIC with children, there’s a slew of conditions. We’ll review them now.

To qualify for the EIC with children, the following must be true:

• The child must meet the age, relationship, and residency tests (see these and qualifying child rules below)
• The qualifying child cannot be used by more than one person to claim EIC, and
• The taxpayer cannot be the qualifying child of another person

Certain special rules may apply to children of divorced parents where one parent is a custodial parent who releases the child’s exemption to the other parent.

Age

Your qualifying child must be under 19 or a full-time student under 24 and must be younger than you (or your spouse, if filing jointly). If your child is permanently and totally disabled the age requirements don’t apply.

Relationship

Your qualifying child must be:

• A son/daughter, stepson/stepdaughter, or eligible foster child
• A brother/sister, stepbrother/stepsister, or half-brother/half-sister
• A descendant of any of those people (for example, a grandchild, niece or nephew)

These rules also apply to relationships:

• Relationships established by marriage aren’t ended by death or divorce
• An adopted child is treated as your own child. An adopted child is any child placed with you for legal adoption

Residency

The child must live with you within the U.S. for more than half of the year. This doesn’t include Puerto Rico or other U.S. territories or possessions. Exceptions are allowed for:

• Temporary absences
• Children born or deceased during the year (if your home was the child’s home for over half of the time they were alive)
• Kidnapped children
• Those who are on extended active duty outside of the United States (they can be treated as living within the United States and extended active duty equals more than 90 days or for an indefinite period.)

Social Security number (SSN) requirement

Qualifying children must have an SSN to be counted for EIC purposes. A valid SSN means an SSN issued by the Social Security Administration before you file your tax return for the year. You can claim the “childless” EIC even if your dependent has no valid Social Security number. Previously, if you had a child who didn’t have an SSN, you couldn’t claim the credit.

Qualifying child and dependency requirement

Your qualifying child can’t be used by more than one person to claim the EIC. You don’t have to claim the child as a dependent to qualify for EIC. However, a married child is only a qualifying child for EIC purposes if you could claim the child as a dependent. Special rules may apply to married children with divorced or separated parents.

Related: IRS rules for claiming dependents on taxes.

Marital status

A qualifying child can’t file a joint return unless:

• They only file a return to claim a refund of taxes withheld or estimated taxes paid and
• There’s no tax liability if separate returns were filed

Filing status

EITC Married Filing Separately rules may keep you from claiming this credit.: Specifically, the only filing status that disqualifies you from being eligible to claim the EIC is Married Filing Separately. However, you can claim the credit if you’re “not treated as married” by meeting the following rules:

• You’re married (i.e. not legally separated under a divorce decree or separate maintenance agreement),
• You don’t file a joint return,
• You live with a qualifying child for more than half the year, and either:
• Don’t have the same principal residence as their spouse for the last six months of the year, or
• Have a decree, instrument, or agreement (i.e., other than a divorce decree) and don’t live with your spouse at the end of the year.

What disqualifies you from earned income credit?

In reviewing the EIC qualifications, it may still not be easy to see if you’re able to claim it.  Instead, it may be easier to see what won’t qualify you. This includes if:

1. You or your spouse don’t have a valid SSN.
2. Your AGI is too high: your earned income and AGI exceed certain limits, you may not be eligible for the EIC.
3. Your investment or foreign income is too high: Both scenarios disqualify you from taking the credit.
4. You have a certain filing status: You must file your tax return using the status of Single, Head of Household, or Qualifying Widow(er) with a Dependent Child to be eligible for the EIC. Generally, the Married Filing Separately status doesn’t qualify. (More on this above.)
5. You claim the foreign earned income exclusion on Form 2555.
6. Improper filing: If you have filed your tax return using an improper filing status or have provided incorrect information, you may be disqualified from claiming the credit.

EIC FAQs

There’s still a lot to know about the Earned Income Credit. For many, it helps to see EIC questions in real scenarios. Follow along as we outline some commonly asked EIC questions.

How do I claim the EITC?

You can claim the Earned Income Credit on your individual tax return on Form 1040. You should include Schedule EIC if you have dependent qualifying children. This schedule is used to determine the credit amount you’re eligible for and to provide additional information required to claim the credit accurately. The form will ask for details such as your filing status, qualifying children, earned income, investment income, and any nontaxable combat pay you received within a tax year.

If I didn’t claim the Earned Income Credit last year, can I amend my return and claim it?

To claim the credit for previous tax years, amend your tax return with  Form 1040-X by the later of these dates:

• Three years from the due date of your original return
• Two years from the date you paid the tax

If you now have a valid SSN but didn’t claim the EIC last year because you or your child didn’t have a valid SSN by the due date of the return, unfortunately, you can’t amend your return to claim the EIC for earlier years.

If I claim the EIC, could I experience refund delays?

Perhaps, but it depends on when you file. If you file early in the tax season and claim the federal EIC, your tax refund won’t be sent before mid-February. This is due to fraud and security measures put in place by a tax law called the Path Act, so the slight delay is there to help protect taxpayers. The IRS expects most refunds to be issued in less than 21 days after filing and acceptance.

What happens if I have an EIC error?

When claiming tax credits, errors happen, resulting in consequences like refund delays on your federal tax return, not receiving the credit at all, or jeopardizing claiming the credit in the future. If the IRS denies your whole claim you:

• Must pay back the EIC amount you’ve been paid in error, plus interest
• Need to file Form 8862: Information to Claim Certain Credits After Disallowance, before you can reclaim the credit if you received a credit disallowance

Note: The IRS may send you a letter questioning your EIC eligibility. If this happens, follow the instructions on the notice to provide whatever additional information is needed to claim the EIC.

If you claim the EIC when you are not entitled to the credit, you may be barred from claiming the EIC in a future year. For example, if the IRS determines the error was due to reckless or intentional disregard for the EIC rules, you could be barred from claiming the EIC for 2 years. In cases involving fraudulent claims of EIC, you can be barred from claiming the EIC for 10 years. It’s important to claim the EIC only if you qualify, H&R Block can help you determine if you qualify for the EIC.

If I have self-employment income can I claim the EIC?

Earned Income Credit self-employed rules on top all the other EIC criteria adds a bit more complexity. Here’s what you need to know: Your self-employment income, minus expenses, counts as earned income for the Earned Income Credit.

You must claim all deductions allowed and resulting from your business. This determines your net self-employment income.

You should also claim all deductions — including depreciation. If you don’t, you might owe a penalty for any misrepresentation you made to obtain the EIC or other tax benefits, such as the Child Tax Credit.

Head of Household and Earned Income Credit question: If I’m married but separated from my spouse, can I file as Head of Household to get the EIC?

If you file as Head of Household, you can claim the EIC if you qualify for it. You can file as Head of Household if you meet the tests and were unmarried or considered unmarried for the tax year. The IRS considered you unmarried if:

• You file a separate return
• You paid more than half the cost of keeping up the home for the year
• Your spouse didn’t live in the home during the last six months of the year
• Your home was the main home of one of these for more than half of the year:
  • Your child
  • Stepchild
  • Eligible foster child

Do I have to claim the EITC on a state return?

You can’t take this federal tax credit on a state return, but many states offer their own version of the Earned Income Credit. If you file a state return, the state EITC will be calculated on it. Review the instructions for the state you’re filing in for more guidance.

Get help claiming the Earned Income Tax Credit

Ready to file your taxes and claim the EIC? Don’t worry, claiming this valuable credit on your taxes is easier with the help of H&R Block! Whether you choose to file with a tax pro or file with H&R Block Online, you can rest assured that we’ll get you the biggest refund possible.