EITC: The Biggest Tax Credit Most Working Americans Miss
The Earned Income Tax Credit is the largest anti-poverty tax program in the United States. In 2023, the EITC delivered $64 billion to 23 million working families and individuals. Yet the IRS estimates 1 in 5 eligible workers does not claim it — leaving billions of dollars unclaimed each year. Here is what the credit is, who qualifies, and how to make sure you receive it.
How the EITC works
The EITC is a refundable tax credit — which means it can give you back more money than you paid in taxes. If the credit you qualify for is more than your total tax liability, you receive the difference as a refund.
The credit amount is based on your earned income and number of qualifying children. It phases in as income rises, reaches a maximum, then phases out. Workers without children also qualify, though the credit is much smaller.
2024 EITC amounts
No qualifying children: maximum $632, income limit $18,591 (single) / $25,511 (married). One child: maximum $4,213, income limit $49,084 / $56,004. Two children: maximum $6,960, income limit $55,768 / $62,688. Three or more children: maximum $7,830, income limit $59,899 / $66,819.
These numbers update each year. The IRS publishes current figures at irs.gov/eitc. The income limit depends on filing status and number of children; the above uses single/married filing jointly thresholds for tax year 2024.
Who qualifies
You must have earned income from wages, salary, tips, or self-employment. You cannot claim the EITC on investment income alone. You must have a valid Social Security number. You must be a US citizen or resident alien all year.
For the larger credits with children, the qualifying child must live with you for more than half the year, be under 19 (under 24 if a full-time student), and meet relationship requirements. For the no-child credit, you must be between 25 and 64 (starting with tax year 2024).
Common mistakes that cost people the credit
Not filing at all — the most common way to miss the EITC is not filing a tax return, often because income is below the filing requirement. But you must file to claim the credit, even if you otherwise do not owe taxes.
Missing the 3-year lookback — you can claim the EITC retroactively for up to 3 prior years if you did not claim it when you filed. File an amended return (Form 1040-X) for any of the past 3 years you were eligible but did not claim.
Filing status errors — claiming married filing separately disqualifies you from the EITC. If you are separated or divorced, understanding your filing status can make a significant difference.
Free tax preparation help
VITA (Volunteer Income Tax Assistance) sites offer free, IRS-certified tax preparation for individuals and families earning under about $67,000. VITA sites are often located at community centers, libraries, and schools. Find locations at irs.gov/vita.
AARP Tax-Aide provides free preparation for all taxpayers, with a focus on those 50 and older. Both programs are IRS-certified and can identify all credits you qualify for including the EITC, Child Tax Credit, and Child and Dependent Care Credit.