1 in 5 Taxpayers Eligible For This Tax Credit Do Not Claim It. See If You Qualify

KEY TAKEAWAYS

• About 20% of eligible taxpayers do not claim the Earned Income Tax Credit.
• This tax credit can reduce taxes owed by more than $8,000, depending on the taxpayer’s income, age, and number of children.
• Taxpayers must be aged 25 to 65, unless they have a child who qualifies, and meet an income limit.

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If you’ve made money this year, you may be leaving a tax credit on the table.

About 20% of eligible taxpayers do not claim the Earned Income Tax Credit, according to the IRS. During the last filing season, about 24 million tax units claimed the EITC. The average taxpayer received about $2,894 in EITC during that tax year.

The EITC provides more than $8,000 in tax credits that low- to moderate-income families can subtract from the taxes they owe. This tax credit is also refundable, meaning taxpayers can receive a refund even if they don’t owe any taxes.

Why This Matters

Many Americans depend on tax credits and deductions to lower their tax burden or increase their tax refund. Especially as many will need their tax refund to pay down debt they incurred in 2025, it is important that they know whether they qualify for the EITC.

Who Qualifies For This Tax Credit?

The maximum adjusted gross income eligible for the EITC varies by taxpayers’ filing status and the number of qualifying children they have.

The EITC amount shrinks based on a taxpayer’s income level, filing status, and number of children. Taxpayers can also use an IRS calculator to estimate their EITC credit amount.

This table refers to Adjusted Gross Income in the 2025 tax year.

To be eligible, the taxpayer must have earned income during the 2025 tax year. Earned income refers to taxable income and wages received while working. It does not include any interest earned throughout the year, alimony or child support, or government benefits, such as unemployment.

Eligible taxpayers also cannot have earned more than $11,950 in investment income during the last tax year.

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Some additional requirements for the EITC for the 2025 tax year include:

• Qualifying taxpayers must be between the ages of 25 and 65, unless they have a qualifying child and their earned income is less than $19,104, or $26,214 if they are married filing jointly.

  • A qualifying child includes a taxpayer’s child, stepchild, foster child, grandchild, sibling or step-sibling.
  • The child must have been under the age of 19 at the end of 2025 or under 24 if they were a full-time student. Children who are permanently and totally disabled qualify at any age.
  • The child cannot be married and file a joint 2025 tax return.
  • The child must have lived with you in the U.S. for more than half of 2025.
  • The child cannot have been used on another 2025 tax return to claim the EITC.

• Taxpayers must have a valid Social Security number.

• The taxpayer must have been a U.S. citizen or resident for all of 2025.

• Taxpayers cannot have received foreign earned income in 2025.

• Taxpayers cannot be claimed as a dependent on another person’s tax return.

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