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The Earned Income Tax Credit: The Refund Working Families Most Often Miss

By CalculateBenefits Editorial Team · Reviewed by Mark Phaneuf, Publisher · September 2026

The Earned Income Tax Credit, or EITC, is a federal tax credit for people who work and earn low to moderate pay. It's the credit the IRS itself says people miss most. The IRS says one in four workers who could get it never claim it. because they didn't know about it, thought they earned too much, or didn't know it can apply even without kids.

For tax year 2025. the return most working families file or amend during 2026. the credit is worth up to $649 with no qualifying children, up to $4,328 with one qualifying child, up to $7,152 with two qualifying children, and up to $8,046 with three or more qualifying children, the IRS says. How much you might get depends on your earned income, your adjusted gross income (AGI), your filing status, and how many qualifying children you have. Applying costs nothing. you claim it on your federal tax return, and free filing help may be available too.

Who can get it?

The IRS has rules for who can claim the EITC for 2025. You must meet all of these:

• You have earned income from a job or self-employment. Money from investments alone doesn't count.
• Your investment income for the year is $11,950 or less.
• You, your spouse (if you file jointly), and any qualifying child each have a valid Social Security number by the due date of your return.
• You're a US citizen or resident alien for the whole year. You file as single, head of household, qualifying surviving spouse, married filing jointly, or. if you're separated from your spouse. married filing separately under a special rule.
• If you don't have a qualifying child, you must be at least age 25 but under age 65 at the end of the year. (If you're married filing jointly, only one spouse needs to meet this age rule.) You must have lived in the United States for more than half the year.

A "qualifying child" is a child, stepchild, foster child, sibling, or their descendant, such as a grandchild, niece, or nephew. They must have lived with you for more than half the year. They must be under 19. or under 24 if they're a full-time student, or any age if they have a permanent and total disability. They can't file a joint return for the year, unless it's only to claim a refund.

How much is it worth in 2025?

Your earned income and your AGI must both fall below the limits below to claim the EITC for tax year 2025.

The credit starts small and grows as your earned income goes up. It reaches its highest point at the amounts in the table. Then it shrinks again as your income gets close to the limit for your family size. Because of this, most people get less than the maximum amount. The IRS's EITC Assistant tool can estimate your actual credit based on your income and household.

Why do so many people miss it?

A few patterns show up again and again among people who miss this credit:

• Workers without kids think it's not for them. The EITC is open to workers age 25-64 without qualifying children, though the income limit is lower and the maximum credit is smaller. Many people assume it's only for parents and never check.
• Income dropped partway through the year. A job loss, fewer hours, or a new lower-paying job can push your earned income into EITC range for the first time. If you've never qualified before, you may not think to check again.
• People with very low income skip filing a return. If your income is low enough that you don't have to file taxes, you still must file a return to claim the EITC. It's a refundable credit. you can get it even if you owe no tax. but only if you file.
• Confusion about cost. Ads for "instant refund" tax products make some people think there's a catch or a fee tied to this credit. There's no fee to claim the EITC itself. Free filing help may be available too (see below).

Does it affect your other benefits?

Federal law protects your EITC refund. It doesn't count as income when an agency decides if you can get other help. Agencies also don't count it as a resource for at least 12 months after you get it. This protects programs like Temporary Assistance for Needy Families, Medicaid, Supplemental Security Income (SSI), and SNAP.

If you already get any of these benefits, claiming the EITC shouldn't put them at risk. If you're not sure how a refund affects your case, ask your caseworker. Want to see other cash help you might get along with the EITC? Check our cash assistance guide.

What to do next

Applying for the EITC happens on your federal tax return. It's always free to apply. no fee, no catch.

1. Use the IRS EITC Assistant at IRS.gov. It can check whether you might qualify and estimate your credit before you file.
2. Read IRS Publication 596 for the full rules and worksheets. This matters most if you're self-employed, clergy, or filing as a separated spouse.
3. If you want free help filing, find a VITA or TCE site near you. These IRS-certified volunteers prepare returns, including EITC claims, at no charge.
4. File a return even if you don't normally have to. The EITC is refundable. So you can get it even if you owe no federal income tax. but only if you file.
5. Expect a short wait for your refund if you claim the EITC. By law, the IRS can't send EITC refunds before mid-February, no matter how early you file.
6. If you could have claimed the EITC in a past year but didn't, the IRS usually gives you up to three years from your original filing deadline to file and claim it. Check our full programs directory for other benefits worth a look too.

Applying for the EITC is always free. Watch out for any paid preparer who charges an extra fee just to "get you" the EITC. the credit itself costs nothing to claim.

Programs mentioned in this guide