What Is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC or EIC) is one of the largest refundable tax credits available, designed to help low- and moderate-income workers keep more of what they earn. The credit is "refundable," meaning that if the credit exceeds your tax liability, you receive the difference as a refund — even if you owe zero income tax. The amount of the credit depends on your income, filing status, and how many qualifying children you have; for 2024, the maximum credit ranges from $632 (no children) to $7,830 (three or more children). Income limits also apply — you must have earned income, and the credit phases out as income rises above certain thresholds. The EITC is separate from and can be claimed alongside the Child Tax Credit. Because the EITC is refundable and can deliver large payments to eligible families, the IRS applies extra scrutiny to EITC claims and requires taxpayers to meet specific documentation requirements to support their eligibility.