What Is the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) is one of the most powerful anti-poverty tools available to working Americans. It's a refundable federal tax credit designed to supplement wages for low-to-moderate income workers, particularly those raising children. In 2025, the maximum credit ranges from about $632 for workers without children to over $7,830 for families with three or more qualifying children.
Who Qualifies for the EITC?
Earned Income Requirement
You must have earned income from employment or self-employment.
Income Limits (2025 Tax Year)
| Qualifying Children | Single/Head of Household | Married Filing Jointly | Maximum Credit |
|---|---|---|---|
| 0 | $18,591 | $25,511 | $632 |
| 1 | $49,084 | $56,004 | $3,995 |
| 2 | $55,768 | $62,688 | $6,604 |
| 3 or more | $59,899 | $66,819 | $7,830 |
Investment Income Limit
Your investment income must be $11,600 or less for the tax year.
Other Requirements
- Valid Social Security number for employment
- Cannot file Married Filing Separately
- Must be a U.S. citizen or resident alien
- Workers without children must be age 25-64
Who Is a Qualifying Child?
- Relationship: Son, daughter, stepchild, foster child, sibling, or descendant
- Age: Under 19 (or under 24 if a full-time student)
- Residency: Lived with you for more than half the year
How to Claim the EITC
File a Federal Tax Return
You must file even if your income is below the filing threshold. Use Schedule EIC if you have qualifying children.
Use Free Filing Options
- IRS Free File for AGI of $84,000 or less
- VITA (Volunteer Income Tax Assistance) sites in Volusia County
- Tax Counseling for the Elderly (TCE) for taxpayers age 60+
The Impact of the EITC on Your Finances
For a Daytona Beach family earning $30,000 with two children, the EITC could provide a refund of over $5,000. The EITC does not count as income for Medicaid, SNAP, SSI, or public housing. Your refund is protected as a resource for 12 months.
See What Benefits You Qualify For
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Start Free Assessment →Frequently Asked Questions
Can I claim the EITC if I'm self-employed or do gig work?
Yes. Self-employment income counts as earned income. Report net self-employment income on Schedule C.
What if I didn't claim the EITC in a previous year?
You can file an amended return (Form 1040-X) for any tax year within the past three years.
Does Florida have a state earned income tax credit?
No. Florida does not have a state income tax, so there is no state-level EITC. The federal EITC goes directly into your pocket.
Will claiming the EITC affect my SNAP or Medicaid benefits?
No. Federal law prohibits counting the EITC refund as income for means-tested programs. The refund is excluded as a countable resource for 12 months.
