The Internal Revenue Service (IRS) of the United States is the agency responsible for receiving tax returns, carrying out penalties on those who do not comply with their tax obligations, and ordering refunds when they are due to those who claim tax credits.
The Earned Income Tax Credit (EITC) targets workers with middle and low purchasing power, with or without qualifying children claimed. It is compatible with other tax credits, and its amount is 100% refundable.
What are they, and who can claim them?
To be able to claim the Tax Credit for Earned Income, one must:
- Have earned income, whether from employment, your own business, or fees for services provided.
- Must be a U.S. citizen or a legal resident for the entire year.
- Must have a Social Security Number (SSN).
- If you have children, they must qualify and meet the eligibility requirements.
- If you do not have children, you must be between 25 and 64 years old.
What are the EITC amounts for tax year 2026?
The Earned Income Tax Credit varies depending on how many qualifying children the taxpayer has claimed. The current amounts for tax year 2026 are:
- No children: 664 dollars.
- With 1 child: 4,427 dollars.
- With 2 children: 7,316 dollars.
- With 3 or more children: 8,231 dollars.