With the rapidly increasing costs and less job opportunities right now, you may want your tax return to pay you, not the other way around. The best credit to help raise your refund is the Earned income credit. This credit is available for low to moderate income families and some single taxpayers.
The Earned Income Tax Credit
The earned income credit is the largest refundable credit, which means you can get money back even if you do not have a tax liability. To qualify for the earned income credit, you must have earned income either from wages, salaries, tips or self-employed income.
The Earned Income credit increases with every qualifying child. In 2026, the maximum EITC with no children is $664, and with one child it is $4,427, with two children it is $7,316, and with three children it is $8,231.
What qualifies as Earned Income?
Earned income can be wages, salaries or tips, but can also be gig income such as selling goods online, renting equipment, or driving a car. Money earned while operating a business or farm is also earned income. Surprisingly taxable benefits from a union strike and nontaxable combat pay can be included in earned income.
Income that is not considered earned income are interest, dividends, pensions, annuities, social security benefits, unemployment benefits, alimony and child support.
What disqualifies someone from the Earned Income Credit?
The earned income credit is for low-to-moderate income earners. While you can be self-employed, investment income can disqualify you. You will not be able to claim the Earned Income Tax Credit in 2026 if your investment income is more than $12,200.
Everyone included in the EITC claim must have a valid social security number by the due date of the return.
You also must be a US citizen or resident alien for the entire year. If you are a nonresident alien for any part of the year, you must be married to a US citizen or resident and choose to be treated as a US resident to be able to participate in the credit.
The EITC phases out completely for single taxpayers with three or more children with $62,974 or for married filing joint taxpayers with $70.244.
Can you qualify for the Earned Income Credit Without Children?
You can qualify for the EITC without children but there are special rules to meet eligibility. You also must have lived in the United States for at least half a year and not be a dependent on another person.
Age is another factor as you must be at least 25 years old but under 65 if you have no qualifying children.
The credit is also completely phased out for singles with no qualifying children with $19,450 o and for married filing joint filers with $26,820.
What if the parents are divorced?
Most of the credits stay with the custodial parent, or the parent that has the children for most nights of the year. The credits that always stay with the custodial parent are Head of Household status, Earned Income Credit, Child and Dependent Care Credit. Some of the credits can be given away to the noncustodial parent by signing Form 8332. These include the Child Tax Credit, the Additional Child Tax Credit, and the Credit for Other Dependents.