With the goal of reducing the amount of taxes owed and even generating a refund, the Earned Income Tax Credit (EITC) is one of the options to address the restrictive economy under Trump. In 2025, the maximum refund has been set at $8,046, with much higher amounts for families with three or more eligible children.
Accessing the EITC requires having income from employment, a valid Social Security number, and living in the United States for more than half of the year. The amount received will depend on income, the state in which the return is filed, and the number of children. Filing a federal tax return is also necessary, using Form 1040 or 1040-SR and attaching Schedule EIC if there are children.
Earned Income Tax Credit (EITC)
According to the official website of the Internal Revenue Service (IRS), the Earned Income Tax Credit (EITC) helps workers and families with low to moderate income receive a tax credit. If you qualify, you can use the credit to reduce the taxes you owe, and possibly increase your refund. It is one of the most useful and valued tax benefits for workers in the United States. It is primarily intended for those with lower incomes, although this can vary depending on the children they have. In 2025, the maximum available EITC amount reaches $8,046, but it increases significantly when the application includes eligible children.
EITC Eligibility
EITC eligibility depends on several factors. On one hand, it depends on receiving earned income, either from self-employment or as an employee. According to the IRS, the allowed amount from investment income cannot exceed $11,950. It also depends on whether you file individually or jointly. If filing jointly, both you and your spouse must have valid Social Security numbers, file under a status other than “married filing separately,” and live in the United States for more than half the year. If claiming with children, it depends on whether the couple is married or not. The amount you will receive depends on your income, the state you file in, and the number of children claimed.
- Married couples. Those who submit a joint application with three or more children may receive up to $68,675.
- Single individuals or heads of households with the same number of children will receive a maximum of $61,555.
- People with fewer dependent children. The maximum credit for one qualifying child is $4,328, for two children it increases to $7,152.
- In the case of a worker without children, the amount is limited to $649.
Necessary paperwork
Regardless of the amount of income, to claim this credit, a federal tax return must be filed. Form 1040 or 1040-SR should be included, and if you have children, you must attach Schedule EIC. Before submitting the documentation, make sure that all paperwork is in order. The IRS provides citizens with detailed tables showing the exact credit amounts and income limits for each category, so make sure you meet the exact figures before submitting your documentation.
These types of options provided by the Internal Revenue Service (IRS) are very helpful for Americans who see their debt disappear or even receive amounts if they don’t have any. Remember to always check these kinds of requests through official channels and websites, as otherwise rumors can spread, like the one circulating on social media about an IRS stimulus check payment in December. This information is false; here are all the details!