Federal: Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a refundable federal tax credit designed to help low-to-moderate income workers and families by reducing the amount of tax owed and potentially providing a refund even if no tax is due. Eligibility is based on earned income (such as wages, salaries, tips, or self-employment income), filing status, investment income limits, and whether you have qualifying children. The amount of the credit increases as earned income rises, phases in to a maximum amount, and then gradually phases out as income exceeds IRS thresholds. For the 2026 filing year (reporting 2025 income), taxpayers must file a return to claim the credit, report all earned income (including tips), and meet residency, age, and Social Security number requirements. Because the EITC is refundable, it can result in a cash refund, making it one of the most valuable credits for eligible workers, especially those with children.