Definition
A refundable federal credit for workers with low to moderate income; for 2026 the maximum is $8,231 for families with three or more children.
What it means
The earned income tax credit, or EITC, rewards work by giving a credit that rises with earnings up to a point, stays flat, and then phases out as income grows. The amount depends on your earned income, AGI, filing status and number of qualifying children. For tax year 2026, the IRS says the maximum credit is $8,231 for taxpayers with three or more qualifying children, with smaller maximums for fewer children and for workers without children. You need a valid Social Security number for work, and so must your spouse and any qualifying child claimed for the credit. Investment income must be under a yearly limit. Because the IRS must hold refunds that include the EITC until mid-February, early filers receive them later. Many states add their own earned income credit.
Example
A married couple with three qualifying children and $25,000 of earned income in 2026 may qualify for the maximum credit of $8,231 or close to it, which is paid even if they owe no federal income tax.
Illustrative numbers only. Your situation will differ.