What is Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) helps low to moderate income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe and maybe increase your refund.
Who Qualifies for the EITC?
You may claim the EITC if your income is low to moderate. The amount of your credit may change if you have children, dependents, are disabled or meet other criteria.
To qualify for the EITC, you must:
- Have worked and earned income under $63,398
- Have investment income below $11,000 in the tax year 2023
- Have a valid Social Security number by the due date of your 2023 return (including extensions)
- Be a U.S. citizen or a resident alien all year
- Not file Form 2555, Foreign Earned Income
- Meet certain rules if you are separated from your spouse and not filing a joint tax return
Earned Income
Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.
Types of Earned Income
- Wages, salary or tips where federal income taxes are withheld on Form W-2, box 1
- Income from a job where your employer didn’t withhold tax (such as gig economy work) including:
- Driving a car for booked rides or deliveries
- Running errands or doing tasks
- Selling goods online
- Providing creative or professional services
- Providing other temporary, on-demand or freelance work
- Money made from self-employment, including if you:
- Own or operate a business or farm
- Are a minister or member of a religious order
- Are a statutory employee and have income
- Benefits from a union strike
- Certain disability benefits you got before you were the minimum retirement age
- Nontaxable Combat Pay (Form W-2, box 12 with code Q)
Earned income does not include:
- Pay you got for work when you were an inmate in a penal institution
- Interest and dividends
- Pensions or annuities
- Social Security
- Unemployment benefits
- Alimony
EITC Table
| Children or Relatives Claimed | Filing as Single, Head of Household, or Widowed | Filing as Single, Head of Household, or Widowed |
| 0 | $17,640 | $24,210 |
| 1 | $46,560 | $53,120 |
| 2 | $52,918 | $59,478 |
| 3 or more | $56,838 | $63,398 |
Maximum Credit Amounts:
- No qualifying children: $600
- 1 qualifying child: $3,995
- 2 qualifying children: $6,604
- 3 or more qualifying children: $7,430
Check out if you are eligible to claim the EITC
Other Credits You May Qualify
If you qualify for the EITC, you may also qualify for other tax credits.
