This article was updated for Tax Year 2023, last edited on December 21st, 2023.
What is the Earned Income Credit?
The Earned Income Tax Credit (EITC) is meant to help low to moderate income households lower their taxes and possibly increase their refund. Earned income includes taxable income from your W-2, your 1099 as an independent contractor or gig worker, self-employment or any business you own.
How can I claim the Earned Income Credit?
To qualify for this credit, you need:
Qualifying earned income
A valid social security number
Status as a U.S. citizen or resident alien
No filing of Form 2555 (related to foreign earned income)
The adjusted gross income (AGI) for your household meets the threshold.
Below is the EITC table for the tax year 2023
Children or Relatives Claimed | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
Zero | $17,640 | $24,210 |
One | $46,560 | $53,120 |
Two | $52,918 | $59,478 |
Three or more | $56,838 | $63,698 |
There is an investment income limit of $11,000 or less.
Children or relatives claimed | Maximum credit amount for 2023 |
Zero | $600 |
One | $3,995 |
Two | $6,604 |
Three or more | $7,430 |
What does not qualify as earned income for this credit?
Pay you got for work when you were an inmate in a penal institution
Interest and dividends
Pensions or annuities
Social Security
Unemployment benefits
Alimony
Child support
Note: Claiming this credit may cause your refund to be delayed. By law, the IRS must wait until mid-February to issue refunds to taxpayers who claim the Earned Income Tax Credit.
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