Earned Income Tax Credit (EITC)
Refundable credit up to $7,430 for families with 3+ children, designed to boost take-home pay.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Low to moderate-income workers and families
Requirements
- 1Earned income below limits
- 2Investment income under $11,600
- 3Valid SSN
- 4US citizen or resident alien
Required Tax Forms
Understanding the Earned Income Tax Credit (EITC)
Refundable credit up to $7,430 for families with 3+ children, designed to boost take-home pay.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. The Earned Income Tax Credit (EITC) can reduce your tax liability by up to $7,430.
To claim this credit, you will need to file Schedule EIC and Form 1040 with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Earned Income Tax Credit (EITC)?
Refundable credit up to $7,430 for families with 3+ children, designed to boost take-home pay.
How much is the Earned Income Tax Credit (EITC) worth?
The Earned Income Tax Credit (EITC) is worth up to $7,430 per year. The average taxpayer saves approximately $3,995.
Who is eligible for the Earned Income Tax Credit (EITC)?
Low to moderate-income workers and families. Key requirements include: Earned income below limits; Investment income under $11,600; Valid SSN; US citizen or resident alien.
What forms do I need to claim the Earned Income Tax Credit (EITC)?
You will need to file Schedule EIC, Form 1040 with your tax return to claim this credit.
Is the Earned Income Tax Credit (EITC) refundable?
Most business and energy tax credits are nonrefundable but can be carried forward to future tax years.
Can I claim the Earned Income Tax Credit (EITC) with other tax credits?
Yes, in most cases you can claim the Earned Income Tax Credit (EITC) along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.