About EITC

EITC, the Earned Income Tax Credit, sometimes called EIC or Earned Income Credit is a refundable tax credit. Meaning, EITC can reduce the federal tax to zero and any left over credit is refunded. But, workers must file a tax return to get the credit even if their income is below the filing requirement. To qualify, workers must have taxable income from working for someone or from running a business or farm.

EITC is One of the Largest Antipoverty Programs

• Last year, over 27 million received nearly $62 billion in EITC for 2011 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 children²  



• The cost of administering the EITC program ratio to claims paid is less than one percent

¹Source: EITC Calendar Year Report, December 2012
²Center on Budget and Policy Priorities, Earned Income Tax Credit, Overpayment and Error Issues, April 19, 2011

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 EITC Home Page on irs.gov IRS 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 the 2012 tax year income limits and maximum credits here



• See the income limits, maximum credit amounts and tax law updates page on the IRS website for the 2011, 2010, and 2009 tax years 



• The tables showing the full range of EITC for differnet filing statuses and income amounts is shown 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

• 2012 EITC Income Limits and Credit Amounts
• EITC Basic Qualifications

Last updated: 3/18/2013