Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a federal tax credit for low- and moderate-income working people. The EITC reduces poverty by supplementing the earnings of low-wage workers and by rewarding those who work.

Currently, working families with children who have annual incomes below $41,100 — and up to $56,000, depending on marital status and the number of dependent children — may be eligible for the federal EITC. In addition, working-poor people who have no children may be eligible to receive a small EITC if their income is below $15,570 — or $21,370 for a married couple.

In 2018, the EITC lifted about 5.6 million people — including 3 million children — out of poverty and reduced the severity of poverty for another 16.5 million people, including 6.1 million children. Without this support, the proportion of kids in poverty would rise by more than 25%.