By Pedro Bianco
En esta noticia
The IRS released the inflation adjustments for tax year 2027 and, among them, confirmed the increase in one of the most valuable benefits for low- and middle-income workers: the Earned Income Tax Credit (EITC).
For next year, the maximum amount rises to $8,496, and the best part is that it is a refundable credit, meaning money that can come back to your pocket in the form of a refund.
What the EITC is
The Earned Income Tax Credit is a tax benefit designed for people and families who work but have low or moderate incomes. Its big advantage is that it is refundable: if the credit is greater than the tax a person owes, the difference is paid back as a cash refund. It can be claimed even when no tax is owed, as long as the return is filed.
IRS confirms it will pay up to $8,496 to everyone who qualifies for the credit
The amount of the credit depends mainly on the number of qualifying children. According to the IRS’s official table for tax year 2027, the maximum amounts are:
- No children: up to $685.
- One child: up to $4,573.
- Two children: up to $7,552.
- Three or more children: up to $8,496.
That $8,496 cap for larger families is, in fact, the highest amount and represents an increase from the $8,231 that applied in 2026.
How much income can you have and still qualify?
The credit is aimed at low- and middle-income earners, so it decreases as income rises and disappears once certain limits are exceeded. For tax year 2027, the maximum income at which a person can still receive some credit is:
- With three or more children: $72,512 for married couples filing jointly, or $65,002 for other filing statuses.
- With two children: $68,029 (married filing jointly) or $60,519 (others).
- With one child: $60,787 (married filing jointly) or $53,277 (others).
- No children: $27,684 (married filing jointly) or $20,164 (others).
There is also a limit on investment income: if it exceeds $12,600 in 2027, the person is ineligible for the credit, regardless of anything else.
What are the requirements to qualify?
Beyond income, to claim the EITC, several conditions must be met:
- Have earned income (from a job or self-employment); passive income alone does not count.
- Have a valid Social Security number for work: the taxpayer, their spouse (if filing jointly), and each qualifying child must have one.
- Be a U.S. citizen or resident alien for the entire year.
- Stay under the investment income limit.
- Generally, not file as married filing separately, except in limited cases.
- If there are no qualifying children, also meet an age range (generally, 25 to 64) and residency requirements.
When and how it is paid
These amounts apply to tax year 2027, meaning they will be used on the tax return filed in early 2028. To claim it, taxpayers must file a return (Form 1040) and, if they have qualifying children, Schedule EIC, even if they are not otherwise required to file because of their income level.