{"id":353986,"date":"2022-08-19T07:44:43","date_gmt":"2022-08-19T12:44:43","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/tax\/federal-taxes\/what-is-the-earned-income-tax-credit.html"},"modified":"2024-01-08T11:14:34","modified_gmt":"2024-01-08T16:14:34","slug":"what-is-the-earned-income-tax-credit","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-the-earned-income-tax-credit.html","title":{"rendered":"What Is the Earned Income Tax Credit?"},"content":{"rendered":"\n
\n \n
\n

What Is the Earned Income Tax Credit?<\/h1>\n
\n
\n By J.P. Finet, J.D.<\/a> | Legally reviewed by FindLaw Staff<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

\n
\n
\n

Key Takeaways<\/h2>\n

The Federal Earned Income Tax Credit (EITC or EIC), is a federal income tax credit that provides financial help to low-income and moderate-income families. It is only available to taxpayers who have earned income from a job, self-employment, or certain types of disability benefits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

One of the most important features of the EITC is that it is refundable. That means the taxpayer will receive the full amount of the credit, even if the amount is larger than their tax liability. For example, a taxpayer eligible for a $2,500 EITC who owes $1,000 in federal taxes will still receive a refund of $1,500.
\r\n<\/p>\r\n

Another feature of the EITC that is often overlooked is that you can claim it for previous tax years, even if you have already filed a return for that year. If you did not know you were eligible when you filed a return for a prior tax year, you can file an amended return<\/a> for that year claiming the credit.<\/p>\r\n

You have up to three years from the date the return for a tax year is due to file an amended return. Because returns for the 2021 tax year were due April 18, 2022, you have until April 18, 2025, to file an amended 2022 return.<\/p>\r\n

The credit is only available to qualified individuals who file a tax return, so if you think you are eligible, file an individual income tax return, even if you aren’t otherwise required to do so<\/a>. Most taxpayers eligible for the credit can take advantage of the Internal Revenue Service’s free file service.<\/p>\r\n

Who Qualifies for the Credit?<\/h2>\r\n

To qualify for the EITC, taxpayers must meet specific requirements. They must have:<\/p>\r\n