About EITC

The Earned Income Tax Credit (or EITC) is a credit for people who do not earn high incomes. EITC can reduce your taxes and result in a refund. Meaning, workers keep more of what they earn.

EITC is One of the Largest Antipoverty Programs

  • Last year, over 26.8 million received almost $59.5 billion in EITC for 2010 tax year returns1.
  • Four of five people eligible for the credit claim it.
  • EITC lifted an estimated 6.6 million people out of poverty, including 3.3 million or half of them children 
  • The cost of administering the EITC program ratio to claims paid is less than one percent.

 1Source: Report NR. 701-98-11 As of December 31, 2011, Year to Date

Basic EITC Eligibility Requirements

Determining eligibility for EITC is complicated. You must make over 20 separate determinations. This tool kit presents the basic qualifiers.  Refer to the IRS website for more detailed information.

 

EITC Income Limits and Maximum Credit Amounts

Income and family size determine the amount of the EITC. The income amounts and the amount of EITC are adjusted for inflation each year. See 2011 amounts here or refer to the income limits, maximum credit amounts and tax law updates page on the IRS website for additional years and information. The Earned Income Credit Table, which shows the credit amounts, is included in the Instruction booklets for the Form 1040 series and in Publication 596, Earned Income Credit. Link to the Publication 596 on irs.gov for the tables or Link to Pub 596 SP, Crédito por Ingreso del Trabajo.

 

Who are we missing?

We estimate that four out of five workers claim the EITC they earned. Help IRS reach the potentially qualifying workers who miss out on thousands of dollars every year on EITC.  Help us educate them about the credit and motivate them to joint the four out of file who file and claim it.  This includes workers who are: 

  • living in rural areas,
  • self-employed,
  • receiving certain disability pensions or have children with disabilities,  
  • without a qualifying child,
  • not proficient in English,
  • Grandparents raising their grandchildren, or
  • recently divorced, unemployed, or experienced other changes to their marital, financial or parental status 

 More About EITC

 

Last updated: 1/23/2012