More Than a Tax Refund: The Earned Income Credit (EIC)
The Earned Income Credit (EIC) is the most powerful tax benefit for low- and moderate-income working families. The key is that it's a **'refundable' credit**, meaning you can get money back even if you owe no tax. This guide will help you understand the EIC benefits and eligibility requirements.
Does My Child Qualify for the EIC?
The EIC amount varies significantly depending on whether you have a Qualifying Child. Use the interactive checker below to see if your child meets the four key tests.
How Much is the Benefit?
The EIC amount is determined by your income and the number of qualifying children. The more children you have, the larger the potential credit. The chart below shows the maximum credit amounts for the 2024 tax year.
Must-Know Rules Before You Claim!
Because the EIC is a valuable credit, the IRS rules are strict. Be sure to understand the following points to avoid mistakes and penalties.
Valid Social Security Number (SSN)
Your child's name and SSN must match their Social Security card exactly. Mismatches can delay or deny your credit.
Strict Residency Rule
You cannot claim the EIC if your child did not live with you for more than half the year. Keep records like school or medical documents to prove residency.
Penalties for Incorrect Claims
If you claim the EIC incorrectly, due to error or fraud, you could be banned from claiming it for up to 10 years and face penalties.