About EITC

Why EITC is Important?

The earned income tax credit, EITC is the federal government’s largest benefit for workers. For people who have earned income from working for someone or running a business or farm, it’s money that positively impacts change in their life, family and community.

We know four out of five eligible taxpayers receive their EITC. This means millions of taxpayers are putting EITC dollars to work for them. But missing that one in five means millions of people are not taking advantage of this valuable credit they earned. Almost a third of those who qualify for EITC qualify for the first time this year due to changes in their marital, parental or financial status. Outreach every year is so important.
 

EITC is one of the Largest Antipoverty Programs

• Nationwide, as of December 2019, about 25 million taxpayers received about $63 billion in EITC. The average amount of EITC received nationwide was $2,476.¹ 

 

• Approximately four of five people eligible for the EITC claim it.²

 

• EITC and the child tax credit (CTC), greatly reduce poverty for working families. These working family credits lifted an estimated 8.9 million people out of poverty in 2017, including 4.8 million or more than half of them children.³  
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• The cost of administering the EITC program ratio to claims paid is less than one percent.⁴

 

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¹Source: Calendar Full Year Report, December 2019.

² Source: The national EITC participation rate is 78% (TY2016), estimated in cooperation with the Census Bureau. The TY2016 estimates based on the Current Population Survey (CPS) is 78%, while the TY2016 estimate based on the American Community Survey (ACS) is 78.6%.

³Source: Center on Budget and Policy Priorities, Policy Basics: The Earned Income Tax Credit, June 21, 2019.

⁴Source:  House Committee on Ways and Means, Subcommittee on Oversight, Hearing on Improper Payments in the Administration of Refundable Credits, May 25, 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 on who qualifies for EITC.

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 2019 tax year income limits and maximum credits here and find links to tax year 2018, 2017 and 2016 income limits and maximum credit amounts.
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• The tables showing the full range of EITC for different filing statuses and income amounts is shown in the Instruction booklets for the Form 1040 series and in Publication 596, Earned Income Credit. Publication 596 or Publication 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 join the four out of five 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

• Income Limits and Range of EITC
• EITC Basic Qualifications