Earned Income Tax Credit (EITC)

What Is the EITC?

The Earned Income Tax Credit (EITC) is one of the largest federal tax credits available to low- and moderate-income workers. It's a refundable credit, which means it can give you a refund even if you don't owe any tax.

Eligibility Requirements

To qualify for the EITC, you must:

• Have **earned income** (wages, salary, tips, or self-employment income)
• Have a valid **Social Security Number** for you, your spouse (if filing jointly), and any qualifying children
• Be a **U.S. citizen or resident alien** for the entire tax year
• **Not** file as Married Filing Separately
• **Not** have investment income exceeding **$11,600**
• **Not** be a qualifying child of another person

Income Limits and Credit Amounts (2025 Tax Year)

The maximum credit and income limits depend on how many qualifying children you have:

Who Is a Qualifying Child?

A child qualifies if they meet these tests:

• **Age:** Under 19 at year-end (under 24 if a full-time student), or permanently and totally disabled at any age
• **Relationship:** Your son, daughter, stepchild, foster child, sibling, or descendant of any of these
• **Residency:** Lived with you in the U.S. for more than half the year
• **Joint return:** The child didn't file a joint return (unless only to claim a refund)

How FileJoy Calculates It Automatically

Here's the great part: you don't need to do anything special. FileJoy automatically determines your EITC eligibility based on the information you've already entered:

1. Your **earned income** from W-2s and self-employment
2. Your **filing status**
3. The **number of qualifying children** in your household profile
4. Your **AGI**

If you qualify, you'll see the EITC appear automatically in your refund estimate on the dashboard. To review the details:

1. Click **Deductions & Credits** in the left sidebar
2. Look for the **Earned Income Credit** section
3. Confirm the credit amount and qualifying children count

Tips

• The EITC is one of the most commonly missed credits—make sure your household profile is complete
• Self-employment income counts as earned income, but investment income does not
• If you don't have children, you can still qualify for a smaller credit (you must be 25–64 years old)
• The IRS may delay refunds for EITC filers until mid-February to prevent fraud