The Internal Revenue Service (IRS) of the United States is the agency responsible for receiving tax returns, enforcing penalties on those who do not meet their tax obligations, and ordering refunds when they are due to those who claim tax credits.
The Earned Income Tax Credit (EITC) targets middle- and low-income workers with or without qualifying children. It is compatible with other tax credits and is 100% refundable.
What are they, and who can claim them?
To claim the Tax Credit for Earned Income, you must:
- Have earned income, whether from employment, your own business, or fees for services rendered.
- You must be a U.S. citizen or a legal resident throughout the year.
- You 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.