EITC (Earned Income Tax Credit)
A refundable federal tax credit for low-to-moderate income working individuals and families.
The Earned Income Tax Credit (EITC) is one of the largest federal tax credits available. It is fully refundable, meaning you can receive it even if you owe no tax. The credit amount depends on your earned income, filing status, and number of qualifying children (0 to 3+). For 2025, the maximum credit ranges from $649 (no children) to $7,640 (3+ children). The credit phases in as income rises, reaches a maximum, then phases out at higher income levels.
Related Terms
Earned Income Credit (EITC)
A refundable tax credit for low- to moderate-income workers. The amount depends on income, filing status, and number of qualifying children — worth up to $7,830 in 2025 with three or more children.
Child Tax Credit
A tax credit worth up to $2,000 per qualifying child under age 17. Up to $1,700 is refundable in 2025, meaning you can receive it even if you owe no tax.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
Filing Status
Your tax classification based on marital and family situation — Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.
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Use our free tool to calculate your eitc (earned income tax credit) and see how it affects your taxes.