The Earned Income Tax Credit (EITC) is a refundable federal tax credit for people who work and earn low to moderate income.
It can reduce the tax you owe and may result in a refund, even if you owe no tax.
✅ General Eligibility Requirements
To qualify for the EITC, you must:
- Have earned income from a job or self‑employment
- Have investment income below the IRS annual limit
- Be a U.S. citizen or resident alien for the entire year
- Have a valid Social Security Number (SSN) for:
- Yourself
- Your spouse (if filing jointly)
- Any qualifying children
- Not file Form 2555 (Foreign Earned Income)
- Be age 25 through 64 if claiming the credit without children
- Not be claimed as a dependent on someone else’s return
📌 Income limits and credit amounts change every year.
💳 2025 EITC Credit Amounts
The maximum credit and income limits depend on the number of qualifying children and filing status.
| Qualifying Children | Max Credit | Max Income (Single / HOH) | Max Income (Married Filing Jointly) |
|---|---|---|---|
| 0 | $632 | $18,591 | $25,511 |
| 1 | $4,213 | $49,084 | $56,004 |
| 2 | $6,960 | $55,768 | $62,688 |
| 3 or more | $8,046 | $59,899 | $66,819 |
📌 These are IRS‑published limits for tax year 2025. Actual credit amounts depend on earned income.
🧮 How the EITC Is Calculated
The IRS looks at:
- Earned income (wages, self‑employment income)
- Filing status
- Number of qualifying children
The credit:
- Increases as income rises (up to a point)
- Then phases out as income gets too high
✅ The TaxSlayer software will automatically calculate your Earned Income Credit if you qualify. You can review the amount of your Earned Income Credit on the Summary page within your account. The credit amount is listed under the Payments section of the Tax Return Summary.
📌 Examples
- Single parent with two children earning $25,000
→ Likely eligible for the maximum $6,960 credit - Married couple with no children earning $20,000
→ Likely eligible for up to $632 credit
🪖 Special Rules for Military Members
- Military members may choose to include or exclude nontaxable combat pay
(Form W‑2, Box 12, Code Q) for EITC purposes only - The choice can increase or decrease the credit
- You must include all or none of the combat pay
- If filing jointly, each spouse chooses separately
✅ Military members stationed overseas are treated as having a U.S. home for EITC purposes.
⛪ Special Rules for Clergy
Clergy earned income rules are different:
- Housing allowance or parsonage value is:
- Included for EITC, unless the minister has opted out of Social Security
- If the minister filed Form 4361 or 4029 and was approved:
- Housing allowance is not included for EITC
- Include:
- Wages and salaries
- Fees for weddings, funerals, and similar services
❌ Do not include:
- Gifts or donations not tied to services
🔐 SSN Requirements
To claim the EITC:
- You, your spouse (if MFJ), and each qualifying child must have a valid SSN
- The SSN must:
- Be valid for employment
- Be issued by the return due date
- Not be an ITIN or ATIN
- Not say “Not Valid for Employment”