The Earned Income Tax Credit is the federal government's largest anti-poverty program delivered through the tax code. Unlike most credits, the EITC is fully refundable — you receive it even if you owe no tax. In 2025, the maximum credit ranges from $649 (no children) to $8,046 (3+ children); for 2026 it rises to $664 and $8,231. The credit phases in as earned income rises, plateaus, then phases out. Understanding these zones is key to maximizing your benefit.
Key Takeaways
- ✓Refundable credit — you get a refund even with $0 tax liability
- ✓Phases in at 7.65% to 45% depending on number of children
- ✓Phase-out starts at $22,090 (single) / $29,290 (joint) for 1+ children
- ✓Married Filing Separately is ineligible for EITC
