Earned Income Tax Credit (EITC) 2026: Who qualifies and how to claim it 

What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a tax benefit for low- to moderate-wage or self-employed earners working hard to make ends meet. The EITC can reduce the amount of taxes you owe or could even result in a refund if the credit you qualify for is greater than the tax you owe.

How much is the federal Earned Income Tax Credit? 

The EITC is worth up to $8,231 for 2026, but the amount you qualify for depends on several factors, including the number of children you have, your filing status, and your adjusted gross income (AGI).

2026 EITC income limits and maximum credit amounts

Is the EITC refundable?

Yes, the EITC is a fully refundable tax credit. That means you’ll get any credit left over as a refund after your tax is zeroed out. Not only could this mean a bigger refund, but in many instances, that refund could be even more than you actually paid in withholding or estimated payments.

Who qualifies for the Earned Income Tax Credit?

To claim the EITC…

• You must have a valid Social Security number (SSN). Your spouse and dependents must have valid SSNs as well.
• You must have earned income (more on that next). If filing a joint return, you satisfy this rule if at least one spouse has earned income.
• You must not file as married filing separately.
• You must be a US citizen or resident alien all year.
• Your adjusted gross income (AGI) must not exceed the IRS’s maximum limits.
• You must not have filed Form 2555, Foreign Earned Income.
• You must not have more than $12,200 of investment income for 2026 (i.e., interest, dividends, net income from rent, net capital gain, and net passive income that is not self-employment income).
• If you are claiming qualifying children for the credit, they must meet the relationship, age, joint return, and residency tests. A qualifying child cannot be used by more than one person to claim the EITC.
• If you are not claiming any qualifying children for the credit, you may still qualify for some EITC if you are at least age 25 and under age 65 and meet the other requirements.
• You or your spouse must not be the qualifying child of another person or be claimed as a dependent on another return.
• You must have lived in the United States for more than half of the year. Members of the military on extended active duty outside the United States are considered to be in the United States during the duty period.

What counts as earned income?

The IRS defines "earned income" for the EITC as, "all the taxable income and wages received for working for someone else, yourself, or from a business or farm you own." It includes:

• Employee pay, including wages, salary, and tips reported on a W-2
• Self-employment pay, including income from a side gig or freelance work
• Taxable union benefits during a strike or lockout
• Payments from an employer’s disability plan, if you received them before the minimum retirement age
• Non-taxable combat pay, if you are military personnel on active duty (This is an optional benefit you can take advantage of to qualify for the EITC. It won’t make your non-taxable pay taxable.)

The IRS does not count all income as earned income for the EITC, even if it’s taxable. It excludes:

• Investment income, including capital gains, interest, dividends, etc.
• Government benefits, like Social Security benefits, unemployment benefits, and workers’ compensation
• Retirement income, such as 401(k) withdrawals, pension, and annuities
• Alimony or child support payments
• Inmate pay earned while incarcerated

What is a qualifying child for the EITC?

In most cases, a qualifying child is a child who meets the following tests: 

• Relationship test: Your child must be your:
  • Child (son, daughter, stepchild, adopted child, or eligible foster child) or descendant (for example, grandchild or great grandchild)
  • Sibling, half sibling, stepsibling, or descendant (for example, nephew or niece)
• Age test: Your child must be under age 19, a full-time student under age 24, or any age if permanently and totally disabled.
  • NOTE: The child must be younger than the taxpayer unless disabled. 
• Residency test: Your child must have the same main home in the United States as you for more than half the year. Living in a homeless shelter for over half the year satisfies the test.
• Joint return test: The child cannot file a joint tax return with a spouse unless they are filing solely to claim a refund of withheld income tax or estimated tax paid.

Multiple taxpayers cannot claim the EITC for the same qualifying child. If a child is the qualifying child for you and another person, you will need to decide who will claim that child. If both of you claim the same child, the IRS will use the tie-breaker rules to determine who can claim the child as a qualifying child and receive the allowed tax benefits, including EITC.

Tie-breaker rules

If more than one person claims the credit based on the same qualifying child...

• If only one of you is the child's parent, the parent will receive the credit for that child.
• If both of you are the child's parents and you do not file a joint return together:
  • The parent the child lived with for the longest period during the year will receive the credit for the child.
  • If the child lived with both parents for the same amount of time, the parent with the highest AGI will receive the credit for the child.
• If neither of you is the child's parent, the person with the highest AGI will receive the credit for the child if that person has a higher AGI than either parent.

Can I claim the EITC without children?

Even if you do not have any qualifying children, you may still be eligible for the EITC if you meet all of the applicable rules and you (or your spouse if filing a joint return) are at least age 25 and under age 65 at the end of the year. 

If you do not have any qualifying children, the maximum credit you could qualify for under the EITC is $664. 

The maximum income limit for EITC with no children is $26,820 if your filing status is married filing jointly and $19,540 if your filing status is single or head of household.   

How do I claim the EITC on my tax return? 

To claim the EITC, you must file Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors, even if you aren’t required to file a tax return otherwise.

If you are claiming the EITC for a qualified child, you must also attach Schedule EIC, Earned Income Credit. You are not required to attach Schedule EIC if you are not claiming a child.

Make sure that you have birthdates and Social Security numbers for everyone you list on your return, including any qualified children.

When will I get my refund if I claim the EITC?

The PATH Act requires the IRS to hold all tax refunds for returns claiming the EITC and/or the Child Tax Credit (CTC) or the American Opportunity Tax Credit (AOTC) until February 15. This is to allow the IRS to spend more time reviewing claims to reduce and prevent fraud and identity theft. 

What happens if the IRS denies my EITC claim?

If the IRS denies your EITC claim, you may have to pay back the money you received, plus interest. The IRS may also charge you an erroneous claim penalty, which is 20% of the extra credit you claimed.

Additionally, if the IRS finds that your claim was the result of a reckless or intentional mistake, it can ban you from claiming the EITC for 2 years. If the IRS finds proof that your claim was fraudulent, it can ban you from claiming the EITC for 10 years.  

If you plan to claim the EITC after the exclusionary period is over, you must file Form 8862, Information to Claim Certain Credits After Disallowance, along with your tax return.

Why would someone not qualify for Earned Income Credit?

If your Social Security card says, "Not valid for employment," and was issued solely for the purpose of receiving a federally funded benefit (such as Medicaid), you cannot claim the EITC. 

You cannot get the credit if you, your spouse, or your qualifying child has: 

• An Individual Taxpayer Identification Number (ITIN) which is issued to a non-citizen who cannot get an SSN
• An Adoption Taxpayer Identification Number (ATIN) which is issued for a child to adopting parents who have not yet received an SSN for the child being adopted
• If you (or your spouse if married filing jointly) do not have an SSN, you can apply for one by filing Form SS-5 with the Social Security Administration. If you do not have a valid SSN by the filing deadline for your tax return, you can:
  • Request an automatic 6-month extension of time to file your return. You can request this extension by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
  • If you do not receive your SSN prior to the extended deadline, generally October 15, or you did not file an extension, you cannot claim the EITC. You cannot amend your tax return and claim EITC on back returns once you get your SSN.

Can I estimate my EITC using an online calculator? 

Yes, you can estimate your EITC using Jackson Hewitt’s EITC calculator, and see if you qualify.

Don’t overlook this valuable tax benefit, even if you otherwise don’t have to file. Claiming the EITC if you qualify could mean hundreds or even thousands of dollars back, and your local Jackson Hewitt Tax Pro is available year-round to ensure you get every dollar you deserve. Find tax services near you, then walk in or book now.