What is the Earned Income Tax Credit (EITC)?

The EITC is a refundable tax credit for low to moderate-income workers. It can reduce your tax liability and result in a refund even if you owe no tax.

Is the EITC refundable?

Yes, the EITC is fully refundable. If the credit exceeds your tax liability, you'll receive the difference as a refund.

EITC Calculator

Calculate your 2025 Earned Income Tax Credit eligibility and amount

Updated August 24, 2026Reviewed for 2025 & 2026 tax yearsIRS-sourcedReviewed by Adam Khale

What is the maximum EITC for 2025?

The maximum Earned Income Tax Credit (EITC) for 2025 is $649 with no qualifying children, $4,328 with 1 child, $7,152 with 2 children, and $8,046 with 3 or more children. The EITC is a refundable tax credit for low-to-moderate income workers, meaning you can receive it as a refund even if you owe no taxes.

EITC is fully refundable — you can receive it even if you owe $0 in taxes
Investment income must be under $11,950 for 2025 to qualify
Over 23 million families claimed EITC in 2024 (IRS Statistics)
Workers without children must be age 25-64 to qualify (on a joint return, either spouse)

Source:IRS Publication 596

The EITC is the most generous federal credit most working families have never heard of. The IRS estimates that one in five eligible filers don't claim it — that's roughly $7 billion left unclaimed every year. The math feels intimidating because it phases in, plateaus, then phases out. The dollars are very real.

Real-world scenario

A single parent, $24,500 earned income, 2 kids

A single parent earning $24,500 from a part-time job, with two qualifying children, sits near the peak of the EITC curve. 2025 maximum credit for two kids: $7,152. Because they're inside the plateau range, they likely get close to the full amount — refundable, meaning it comes back as a check even if they owe zero federal tax.

The part most people miss

Investment income above $11,950 (2025) disqualifies you entirely — even if it's just bank interest, dividends, or capital gains in a brokerage account. Move excess savings into a Roth IRA or 401(k) before year-end. The interest inside those accounts doesn't count toward the EITC investment-income test.

Your Information

Tax Year

Current return

Rev. Proc. 2024-40: max credit $649 / $4,328 / $7,152 / $8,046; investment-income cap $11,950.

Wages, salaries and tips

Net self-employment profit (Schedule C line 31)

Investment Income

Filing Status

Qualifying Children

Your Age

Additional Requirements

I can be claimed as a dependent on someone else's return

Someone else can claim me as their qualifying child (for example a parent, if I'm under 19, or under 24 and a full-time student)

Qualifying Child Requirements

• Under 19, or under 24 if a full-time student, and younger than you (or your spouse); any age if permanently and totally disabled
• Lived with you for more than half the year
• Related to you (child, stepchild, foster child, sibling, etc.)
• Have a valid Social Security number
• Cannot file joint return (except to claim refund)

Your EITC Estimate

Estimated Credit

Eligible for EITC

2025 Income Limits

Max Credit Earned At

$8,490

Phase-out Starts

$10,620

Credit Ends At

$19,104

Investment Limit

$11,950

2025 Maximum EITC by Children

No children$649

1 child$4,328

2 children$7,152

3+ children$8,046

This calculator provides estimates based on 2025 EITC rules. The EITC is a refundable credit, meaning you can receive it even if you owe no tax. You must file a tax return to claim EITC. Additional requirements include having a valid SSN, being a U.S. citizen or resident alien, and not filing Form 2555 (Foreign Earned Income).