The Earned Income Tax Credit is a refundable tax credit from the US federal government; it is created to help the families with low to moderate income. For the tax year 2025, to be filed in 2026, it can reduce the tax you owe significantly and qualify you for a refund.
To claim the EITC for the tax year 2025, it is mandatory that a family meet the requirements set by the IRS. For the 2026 tax season, the qualifying rule is slightly changed because the income threshold is adjusted; not only this, but the amount of credit is also increased.
If you don’t owe any tax, you may get a minimum of $649 and a maximum of up to $8,046 by claiming the EITC with your tax refund for the tax year 2025. Read it to check if you qualify to claim it, and it can reduce the amount you owe or give you a refund.
Who qualifies for the EITC for tax year 2025?
In order to claim the EITC for the 2026 tax season, it is mandatory that your adjusted gross income is not above the threshold set by the IRS. Refer to the listed points to check if you are eligible to claim this tax credit.
- In case of filing as single, head of household, married filing separately, or widowed, your AGI with 0, 1, 2, and 3 or more qualifying children or relatives should not be above $19,104, $50,434, $57,310, and $61,555, respectively.
- If you file jointly, your AGI with 0, 1, 2, and 3 or more qualifying children or relatives shouldn’t exceed the income of $26,214, $57,554, $64,430, and $68,675, respectively.
Additionally, your investment income shouldn’t be above $11,950. If it exceeds it by even a single dollar, you can claim the Earned Income Tax Credit for the tax year 2025.
Note that a qualifying child is the child who meets age, relationship, residency, and support rules, and a qualifying relative is someone whom you support financially and who meets income and relationship rules. The details about the same are listed below.
Qualifying Child
- Must be your child or close family member.
- Must be under 19, or under 24 if a full-time student, or any age if disabled.
- Must live with you more than 6 months of the year.
- Must not pay more than 50% of their own support.
Qualifying Relative
- Cannot be a qualifying child.
- Must be related to you or live with you all 12 months.
- Must have income below $4,700.
- You must provide over 50% of their total support.
What’s the amount of EITC for tax year 2025?
For the 2026 tax season, the EITC rates are revised. As per the IRS, those who meet eligibility requirements can claim it and can reduce the owed taxes or get a refund up to $8,046. The listed points carry the EITC rates for the tax year 2025.
- If you have no qualifying child or relative, you can claim up to $649.
- For one qualifying child or relative, the maximum you can get is $4,328.
- In case of having two qualifying children or relatives, you can claim a maximum credit of $7,152.
- Individuals with three or more qualifying children or relatives can claim up to an $8,046 tax credit.
The maximum tax credit can be claimed only if the AGI isn’t exceeding the threshold. If your adjusted gross income is above a certain limit, it starts to phase out. The reduction rules are as follows:
- It is reduced by 7.65% for 0 qualifying children, child, or relative.
- For one qualifying child or relative, it is reduced by 15.98%.
- In case of having two or more qualifying children or relatives, the benefit is reduced by 21.06%.
Let’s understand it by an example. Suppose that for the tax year 2025, you file as an individual, you have 0 children or relatives, and your AGI is $20,000.
As the threshold for an individual with 0 children who has a relative is $19,104, firstly you need to reduce $19,104 from $20,000, and the figure you get is $896.
Now, you need to find 7.65% of 896; it is $68.54. To find the amount you get claimed with the Earned Income Tax Credit for the tax year 2025, it is ($649 – $68.54), i.e., $580.46.
Disclaimer: Updated EITC eligibility details for the 2026 tax season are for general awareness only; official rules and qualifications are determined by the IRS.
