The earned income tax credit or earned income credit (EITC or EIC) by the United States federal government is a refundable tax credit for low to moderate-income working individuals, couples, and families, particularly the ones with children.

The amount of this benefit depends on the taxpayer’s income and the number of children at home. Even adults with no children are eligible for EITC. 

For the 2022-23 tax year, the EITC range is from $560 to $6,935. This depends on the status of the tax filer (single or joint), annual income and the number of children. If you are eligible for the credit, don’t forget to claim it when you file your taxes. Even if you did not claim your EITC in the last three years while filing your taxes, you can still file an amended tax return to get your money back. This is encouraged by the IRS.

What is the income limit to qualify for Earned Income Tax Credit?

For the taxes due in April 2023, the following are the limits to be eligible for EITC.

Number of childrenMaximum earned income tax creditMax AGI,single or head of household filersMax AGI, married joint filers
3 or more$6,935$53,057$59,187

Things to note

How does Earned Income Tax Credit work?

For the financial year of 2022-23, you file your tax returns in 2023. Your earned income credit for this year ranges from $560 to $6,935, depending on your filing status and how many kids you have.

Remember that it is not necessary to have kids in order to qualify for EITC.

The earned income tax credit has many benefits. It not only reduces the tax amount you owe to the government, but you can also get a refund on the amount paid. Sometimes, the refund you get is actually more than the amount you paid in taxes. 

You also need to remember that if you claim your earned income tax credit now, it will take the IRS at least till mid-February to issue the refund. 

Who qualifies for Earned Income Tax Credit?

Apart from having low to moderate income, there are several other factors that determine whether you qualify for earned income tax credit. Given below are the rest of the eligibility criteria:

Things to keep in mind if you have children and are claiming EITC

If you have one or more children dependent on your income and tax credit, each of them need to qualify under the following criteria:

How to claim EITC if you don’t have kids?

By now you know that you can qualify for EITC even without kids, there are three more criteria that you need to adhere to:

What to do if you make an error while claiming your EITC?

Making any error in your EITC claims can cost you a lot. It delays your refund by several months. That’s not all, the IRS could also deny you the entire refund amount.

This is what will happen if the IRS denies your entire tax refund: