What are the basics of the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a refundable credit for working people with low to moderate income, meaning it can pay you a refund even if you owe no tax. For 2025 it's worth up to roughly $8,046 with three or more qualifying children, less with fewer kids, and a small amount (a few hundred dollars) for workers with no children. You need earned income from a job or self-employment, a valid Social Security number, and investment income under about $11,950. Income limits scale with family size, reaching roughly $61,000–$67,000 for larger families filing jointly. Many eligible workers miss it because they don't file a return; you must file to claim it. If your income is modest, it's one of the most valuable credits available and worth checking every year.