What Is the EITC Minimum Income Requirement?
While there is no set minimum income to claim the EITC, your earnings directly determine the amount of your credit. Learn how the calculation works.
The Earned Income Tax Credit (EITC) is a refundable federal tax credit for individuals and families with low-to-moderate incomes. Its purpose is to lower the tax owed and potentially provide a refund as a supplement to wages. To claim the credit, a taxpayer must file a federal income tax return, even if they do not owe any tax or are not otherwise required to file. The credit is also intended to help offset the burden of Social Security taxes and provide an incentive to work.
The “No Minimum Income” Rule Explained
Officially, there is no minimum dollar amount you must earn to be eligible for the EITC. However, the credit is calculated as a percentage of earned income, which means a taxpayer with zero earned income receives a zero-dollar credit. The credit is designed with a “phase-in” range where it increases with every dollar earned at the lowest income levels. This structure means that while no specific minimum is required, you must have some earned income to receive any credit.
Defining Earned Income for the EITC
The Internal Revenue Service (IRS) defines “earned income” as all taxable income and wages from working for an employer or from a business you operate. This includes wages, salaries, tips, and other taxable employee pay. Net earnings from self-employment, which is the gross income from your business minus allowable expenses, also qualify as earned income.
Certain disability benefits can be counted as earned income in specific situations. If you receive long-term disability benefits from a plan paid for by your employer before you reach the minimum retirement age, these payments are considered earned income. This rule assists individuals who are unable to work due to a disability but have not yet reached retirement age.
Many types of income do not qualify as earned income for the EITC. You must separate these sources from your earned income when determining eligibility. Non-qualifying sources include:
- Interest and dividends
- Retirement income, such as pensions and annuities
- Social Security benefits
- Unemployment benefits
- Alimony and child support payments
Other Core EITC Eligibility Requirements
Beyond having earned income, several other requirements must be met to claim the EITC. The taxpayer, their spouse if filing jointly, and any qualifying child must each have a Social Security number that is valid for employment. This SSN must be issued before the due date of the tax return, including extensions.
Filing status is another determining factor. Taxpayers using the “Married Filing Separately” status are ineligible to claim the EITC. The most common filing statuses for claimants are Married Filing Jointly, Head of Household, Qualifying Surviving Spouse, and Single.
There is a limit on the amount of investment income a taxpayer can have. For the 2025 tax year, this limit is $11,950. If your investment income from sources like interest, dividends, and capital gains exceeds this amount, you cannot claim the EITC. This rule ensures the credit is targeted toward those who rely primarily on labor income.
You must also be a U.S. citizen or a resident alien for the entire year. The rules for claiming the credit differ depending on whether you have a qualifying child. If you do not have a qualifying child, you must be between the ages of 25 and 64 at the end of the tax year to be eligible.
How Income Level Determines Your Credit Amount
The amount of your EITC is determined by your income level and family size. The calculation follows a three-part structure: a phase-in, a plateau, and a phase-out. The IRS provides detailed EITC tables to help find exact credit amounts based on where your income falls within these ranges.
During the phase-in period, the credit increases with every dollar of earned income. For example, a single filer with one child will see their credit grow from $0 with their first dollar of earnings up to a specific income point.
Once income reaches a certain level, the credit enters the plateau range, where the taxpayer receives the maximum credit amount for their filing status and number of children. For the 2025 tax year, the maximum credit for a taxpayer with one qualifying child is $4,328. The income range for this plateau represents the peak benefit level.
After the plateau, the phase-out range begins, and the credit amount starts to decrease as income rises. For every dollar earned above the phase-out threshold, the credit is reduced by a percentage until it reaches zero. For a married couple filing jointly with two children in 2025, their earned income must be less than $64,430 to receive any credit. This gradual reduction ensures the benefit is concentrated on low- to moderate-income households.