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Tax Credits and Tools

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is designed to help people with low income by lowering the amount of federal income tax they owe. Even if you don’t earn enough money to owe federal income taxes, you may be able to get an EITC.

Eligibility

To qualify, you must have income from employment, self-employment, or employer-paid disability benefits that is below certain limits and you must file your federal taxes.

The amount you get from your EITC depends on your Adjusted Gross Income (AGI), whether you are married, and the number of children you have. For 2024 (filing taxes by April 2025), the EITC ranges from $2 to $7,830.

EITC Adjusted Gross Income (AGI) Limits and Maximum Credits*
	No Children	1 Qualifying Child	2 Qualifying Children	3 or More Qualifying Children
Single	AGI limit: $18,591 Max credit: $632	AGI limit: $49,084 Max credit: $4,213	AGI limit: $55,768 Max credit: $6,960	AGI limit: $59,899 Max credit: $7,830
Married (filing jointly)	AGI limit: $25,511 Max credit: $632	AGI limit: $56,004 Max credit: $4,213	AGI limit: $62,688 Max credit: $6,960	AGI limit: $66,819 Max credit: $7,830
* Figures are for tax year 2024 (filing by April 2025).

To be eligible for the Earned Income Tax Credit you must meet several requirements:

General requirements:

You must meet adjusted gross income requirements (see table above)
You must have earned income from employment, self-employment or employer-paid disability benefits that you got before retirement
You must have a Social Security Number valid for employment
You cannot file your taxes as “married filing separately.” If you’re married, you must file a joint tax return
You must be a U.S. citizen or resident alien. If not, you must be married to a U.S. citizen or resident alien and filing a joint tax return
You must live in the U.S. for more than half of the year

Age Requirements:

If you are claiming qualifying children, you can be any age
If you’re not claiming a qualifying child, you must be 25 to 64 years old

Additional requirements:

You cannot claim foreign income or a foreign housing deduction using Form 2555
You must not have investment income that exceeds $11,600 (for 2024)
You cannot be the dependent of another person
You cannot be the qualifying child of another person

Earned Income

To qualify for an EITC, you must have earned income. This can include your wages, salaries, tips, net earnings from self-employment, or any other form of taxable pay. You can also elect to include nontaxable combat pay as earned income.

The EITC program considers employer-paid disability payments that you get before retirement earned income. But benefits payments from a policy you paid the premiums for, or that you got after retirement, would not be considered earned income.

Other things that do not qualify as earned income under the EITC include:

Interest and dividends
Social Security and railroad retirement benefits
Pensions and annuities
Alimony and child support
Workers’ compensation benefits
Unemployment compensation
Welfare benefits
Veterans benefits

If you are married and filing jointly, at least one spouse must have earned income to be eligible for an EITC.

Adjusted Gross Income and Qualifying Children

In addition to the earned income requirement, you must have an adjusted gross income (AGI) below certain levels to qualify for an EITC.

Your adjusted gross income (AGI) includes all earned income before deductions for taxes, health care or other expenses, minus certain business, education-related, and other expenses. While filling out your annual tax return (IRS Form 1040), you will be asked a series of questions that will let you figure out what your AGI is.

Example

John earned $30,000 in wages for the year, before taxes and other deductions were taken out of his paychecks. He also earned $4,000 in employer-paid disability insurance payments for the year. He had no deductions for business, education-related, or other expenses.

According to the EITC program, John’s adjusted gross income would be $34,000—his gross wages plus payments he got from the employer-paid disability insurance.

For a child to be considered a qualifying child under EITC, several requirements must be met:

Relationship: If you are claiming one or more child, they must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these (for example, your grandchild, niece, or nephew)

Residence: The child must live at the same residence as the taxpayer for more than half the year and have a valid Social Security number

Age: At the end of the tax year, the child must be under 19. Or, if going to school full-time, the child must be under 24. The only exception is for people who are permanently and totally disabled. If the taxpayer’s child is permanently and totally disabled, there is no age requirement

According to the IRS, a person is considered “permanently and totally disabled” if their condition is expected to last continuously for at least one year or is expected to result in death, and if they cannot perform any Substantial Gainful Activity (SGA). For 2024, this means they cannot work and earn more than $1,550 per month ($2,590 if you are blind).

Note: Qualifying children can only be used by one family member to claim an EITC.

How to Get an EITC

If you qualify, you will claim your Earned Income Tax Credit when you file your federal tax return, IRS Form 1040. If you have a qualifying child, be sure to attach a Schedule EIC.

To calculate the value of your EITC, you can use the Earned Income Credit Worksheet in your 1040 instruction booklet. Or you can ask the IRS to calculate it for you by noting an “EIC” on the Earned Income Credit line on your tax return.

To figure out whether or not you are eligible for an EITC, and to see what the value might be, use the IRS EITC Assistant.

Tax Preparation Tips for Claiming the EITC

Keep all your W-2's and keep a record of who you have worked for during the year. This will make things simpler when it comes time to file your taxes.

If you are on a limited income, do not pay someone to do your taxes. Use a Volunteer Income Tax Assistance (VITA) Center to file. Most centers can e-file your return for free. If you are self-employed, have all your receipts and a log of expenses ready for the tax preparer.

Be sure to file your taxes, even if your income is lower than the amount at which you are legally required to file. You might be eligible for an EITC or some other tax credit that you can’t get without filing. Many families with children who qualify for an EITC may also be eligible for a Child Tax Credit (CTC).

The following is a summary of the EITC requirements:

Earned Income Credit Requirements for Tax Year 2024 (filing by April 2025)
Requirements	Single Person without Qualifying Child	Single Person with at least one Qualifying Child
Adjusted Gross Income	$18,591 for a single person $25,511 for married couple	*One qualifying child:* $49,084 for a single person $56,004 for married couple *Two qualifying children:* $55,768 for a single person $62,688 for married couple *Three or more qualifying children:* $59,899 for single individual $66,819 for married couple
Social Security Number	Social Security Number valid for employment	Social Security Number valid for employment
Tax Status	Joint tax return if married, unless separated for more than six months	Joint tax return if married, unless separated for more than six months
Citizenship	Must be a U.S. citizen or legal resident. Or if you’re a nonresident alien, you must be married to a U.S. citizen or legal resident and filing a joint tax return	Must be a U.S. citizen or legal resident. Or if you’re a nonresident alien, you must be married to a U.S. citizen or legal resident and filing a joint tax return
Foreign Income	Cannot claim foreign income or a foreign housing deduction using Form 2555	Cannot claim foreign income or a foreign housing deduction using Form 2555
Investment Income	Cannot have investment income that exceeds $11,600	Cannot have investment income that exceeds $11,600
Earned Income	Must have earned income	Must have earned income
Relationship	Does not apply	The child must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendent of any of these (for example, grandchild, niece, or nephew)
Age	*Adult:* Must be 25 to 64 years old	*Adult:* No age requirements *Children*: Under age 19 at end of the year Under age 24 at the end of the year and a full-time student, or Any age if permanently and totally disabled
Residency	Must live in the U.S. for more than half of the year	Must live in the U.S. for more than half of the year
Qualifying Child	Cannot be the qualifying child of another person	Must have at least one qualifying child Each qualifying child can only be used by one family member
Dependent Child	Cannot be the dependent of another person	Cannot be the dependent of another person
Tax Forms	1040 To have IRS figure the amount of your credit, enter “EIC” on the Earned Income Credit line of your tax form	1040 AND Schedule EIC To have IRS figure the amount of your credit, enter “EIC” on the Earned Income Credit line of your tax form

Interaction With Other Disability Benefits Programs

Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI)

You must have some form of earned income to qualify for an EITC. Social Security benefits do not count as earned income under the program. You can, however, be on SSI or SSDI and claim an EITC, as long as you have some form of earned income.

If you're on SSI, you should spend any money you get from an EITC within 12 months. If you don't, Social Security will count that money toward SSI's resource limit.

Individual Development Accounts (IDAs)

Money from an EITC can be put into an Individual Development Account. This lets you get matching funds from the IDA program sponsor.

Plans to Achieve Self-Support (PASS)

Money from an EITC can be set aside in a PASS. This will let you reach your employment goals more quickly, by saving money without affecting the way your income is counted.

Long-Term Disability Insurance

Employer-paid long-term disability insurance benefits that you got before retirement count as earned income under EITC and can therefore be used to qualify for the program. Disability insurance benefits which you pay the premiums for, or that you get after retirement, are not considered earned income and can’t be used to qualify for an EITC.

Volunteer Income Tax Assistance Program (VITA)

The IRS Volunteer Income Tax Assistance Program (VITA) offers free tax help for taxpayers who qualify.

The VITA Program offers free tax help to low- to-moderate income (generally, $64,000 and below) people who can’t prepare their own tax returns. Certified volunteers are available to help prepare your taxes and they will make sure you get special credits, such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Elderly or the Disabled. In addition to free tax return preparation help, most sites also offer free electronic filing (e-filing).

VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. To locate the nearest VITA site, visit Minnesota Revenue or call 1-800-652-9094.

Child Tax Credit (CTC)

The Child Tax Credit (CTC) is available to parents with children under age 17. CTC gives these parents a $2,000 tax credit for each child in the family under 17. Eligible families must be working and earning at least $2,500 a year.

Note that if you're on SSI and get money from a CTC, you should spend it within 12 months. After 12 months, Social Security will count that money toward SSI's resource limit. If you have any questions about this, Chat with a Hub expert.

Other Programs

If you or your spouse is a U.S. citizen who got taxable disability income and was permanently and totally disabled during this tax year, you may be eligible for the Credit for the Elderly or the Disabled.

A guide to other employment supports for people on SSI is available here.