Earned Income Credit (EIC)

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The Earned Income Credit is a refundable credit for lower income taxpayers. There are a number of factors that determine if you qualify for the Earned Income Credit. Our software makes it easy to claim the EIC. If you qualify, the credit will be automatically included on your return. The rules for calculating the EIC are listed below.

First, in order to take the EIC, you must have earned income (such as wages, tips or self-employment income).

To claim the EIC, your adjusted gross income (AGI) must be less than:

• $61,555 ($68,675 if married filing jointly) with 3 or more qualifying children;
• $57,310 ($64,430 if married filing jointly) with 2 qualifying children;
• $50,434 ($57,554 if married filing jointly) with 1 qualifying child;
• $19,104 ($26,214 if married filing jointly) with no qualifying children.

The following are some things that may make you ineligible for the EIC:

• If your investment income, such as interest, dividends and capital gains, is over $11,950.
• If you're younger than 25 or older than 64 and you don't have any qualifying children for the EIC.
• If you have an ITIN instead of a Social Security Number.
• If your home was outside the United States for more than half the year.
  Except, if you're a military member on extended duty overseas, then you're still considered to have a home in the U.S.
• If the IRS sent you a notice saying you can't claim the EIC because you had your EIC disallowed on previous tax returns. The IRS can ban taxpayers from claiming the EIC for two to ten years if they believe an EIC claim was fraudulent, reckless, or intentionally disregarded the rules.
• If you're a nonresident alien (a noncitizen who doesn't live in the United States) at any point during the year.
• If your filing status is Married Filing Separately or you're filing using the Head of Household filing status as a married person.
  Except, if you have a qualifying child and qualify for the special rule for separate spouses.

A qualifying child for the EIC must be a child who meets the following three tests:

1. Is a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
2. Lived with you in the United States for more than half of the year. Temporary absences for special circumstances (such as for school, vacation, medical care, military service, or detention in a juvenile facility) count as time lived at home. Also, a child who was born or died in during the year and lived with you for more than half of the time they were alive is considered to have lived with you more than half the year. Similarly, an adopted child or eligible foster child is considered to have lived with you for all year if the child lived with you the entire time since they were adopted or placed with you.
3. Was under age 19 or was a student under age 24 on December 31, 2025 (or any age and permanently and totally disabled).

If your ex-spouse claims your child as a dependent, but you're the custodial parent whom your child lives with the majority of the year, you can still claim your child for the EIC. Enter your child on the Your Dependents and Qualifying Children screen and answer the questions letting us know that your ex-spouse is claiming the child due to a custody agreement. You will still be eligible to claim your child for the EIC and Child Care Credit even though your ex-spouse claims your child for the Child Tax Credit.