Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.

Who qualifies

You may claim the EITC if your income is low- to moderate. The amount of your credit may change if you have children, dependents, are disabled or meet other criteria.

Military and clergy should review our special EITC rules because using this credit may affect other government benefits.

If you claim this credit, your refund may be delayed. By law, we must wait until mid-February to issue refunds to taxpayers who claim the Earned Income Tax Credit

Basic qualifying rules

To qualify for the EITC, you must:

• Have earned income
• Have investment income below the limit
• Have a valid Social Security number by the due date of your return (including extensions)
• Be a U.S. citizen or a resident alien all year
• Not file Form 2555, Foreign Earned Income
• Meet certain rules if you are separated from your spouse and not filing a joint tax return

Special qualifying rules

The EITC has special qualifying rules for:

• Military members
• Clergy members
• Taxpayers and their relatives with disabilities

Valid Social Security number

To qualify for the EITC, you, your spouse if filing jointly, and the child claimed must have a valid Social Security number (SSN) issued on or before the due date of the tax return (including extensions).

An SSN is not valid for the EITC if:

• It was issued after the due date of your return (including extensions) or,
• It was issued solely to apply for or receive a federally funded benefit (such as Medicaid) and does not authorize you to work.

Note: If you, your spouse, or your child has a Social Security card with “Not valid for employment” printed on it and the immigration status has changed to a U.S. citizen or permanent resident, ask the Social Security Administration for a Social Security card without the legend.

For more information about a valid Social Security number for the EITC, see Rule 2 in Publication 596, Earned Income Credit.S. citizen or resident alien

U.S. citizen or resident alien

To claim the EITC, you must be a U.S. citizen or resident alien all year.

If you were a nonresident alien for any part of the tax year, you can only claim the EITC if your filing status is married filing jointly and your spouse is a U.S. citizen or resident alien, and you choose to be treated as a U.S. resident

Married filing separate

You can claim the EITC if you are married, not filing a joint return, had a qualifying child who lived with you for more than half of the tax year and either of the following apply.

• You lived apart from your spouse for the last 6 months of tax year, or
• You were legally separated according to your state law under a written separation agreement, or a decree of separate maintenance and you didn't live in the same household as your spouse at the end of the tax year.

Head of household

You can claim the head of household filing status if you're not married, had a qualifying child living with you more than half the year, and you paid more than half the costs of keeping up your home.

Costs include:

• Rent, mortgage interest, real estate taxes and home insurance
• Repairs and utilities
• Food eaten in the home
• Some costs paid with public assistance

Costs don't include:

• Clothing, education, and vacation expenses
• Medical treatment, medical insurance payments and prescription drugs
• Life insurance
• Transportation costs like insurance, lease payments or public transportation
• Rental value of a home you own
• Value of your services or those of a member of your household

Qualifying surviving spouse

To file as a qualifying widow or widower, all the following must apply to you:

• You could have filed a joint return with your spouse for the tax year they died.
• Your spouse died less than 2 years before the tax year you're claiming the EITC, and you did not remarry before the end of that year.
• You paid more than half the cost of keeping up a home for the year.
• You have a child or stepchild you can claim as a dependent (this does not include a foster child) and the child lived in your home all year.

Note: There are exceptions for temporary absences and for a child who was born or died during the year and for a kidnapped child. For more information, see Qualifying Child Rules, Residency.

Claim the EITC without a qualifying child

You can claim the EITC without a qualifying child if you meet the EITC basic qualifying rules and you:

• Lived in the United States for more than half the tax year. The United States includes the 50 states, the District of Columbia and U.S. military bases. It does not include U.S. territories such as Guam, the Virgin Islands or Puerto Rico
• Cannot be claimed as a qualifying child of another taxpayer or dependent of another person
• Meet the age requirements. You must be at least age 25 but under age 65 at the end of the year. If married and filing a joint return, at least one spouse must meet the age rule.

Other credits you may qualify for

If you qualify for the EITC, you may also qualify for other tax credits.

• Child Tax Credit and the Credit for Other Dependents
• Child and Dependent Care Credit
• Education Credits
• Adoption Credit

Child and Dependent Care Credit information

If you paid someone to care for your child or other qualifying person so you (and your spouse if filing jointly) could work or look for work, you may be able to take the credit for child and dependent care expenses.

Your federal income tax may be reduced by claiming the credit for child and dependent care expenses on your tax return.

Who is eligible to claim the credit? 

• You paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.
• You (or your spouse if filing a joint return) lived in the United States for more than half of the year. However, special rules apply to military personnel stationed outside of the United States.

Find out if you are eligible to claim the Child and Dependent Care Credit.

Who qualifies you for the credit?

A qualifying person generally is a dependent under the age of 13, a spouse or dependent of any age who is incapable of self-care and who lives with you for more than half of the year.

How is the credit calculated?

The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.

Education credits: American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC)

Education credits help with the cost of higher education. They can reduce the amount of tax owed on your tax return or they may increase your refund. There are two education credits available.

• American Opportunity Tax Credit (AOTC) – partially refundable
• Lifetime Learning Credit (LLC) – non-refundable

You can claim only one of the credits per qualifying student. You can claim both the AOTC and LLC on the same return only if they are not for the same student and the same expenses. No double benefit is allowed.

Who can claim an education credit?

Use the Interactive Tax Assistant to check your eligibility.

Review the comparison chart below to quickly identify the criteria for each credit and their similarities and differences.

1 Academic period - can be semesters, trimesters, quarters, or any other period of study such as a summer school session. The school determines academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

2 Third-party payer – If someone else paid expenses for the student claimed on your return, the expenses are considered paid by you.

3 TIN issue date - If an ATIN or ITIN is applied for on or before the due date of a 2024 return (including extensions) and the IRS issues an ATIN or ITIN as a result of the application, the IRS will consider the ATIN or ITIN as issued on or before the due date of the return.

Who cannot claim an education credit?

You cannot claim an education credit if:

• You are claimed as a dependent on another tax return, such as your parent’s return.
• Your filing status is married filing separately.
• You (or your spouse) were a non-resident alien for any part of the year and did not choose to be treated as a resident alien for tax purposes (find more information in Publication 519, U.S. Tax Guide for Aliens).
• Your modified adjusted gross income (MAGI), is over $90,000 ($180,000 for joint filers).

For the American Opportunity Credit only: If items 1 (a, b, or c), 2, and 3 below apply to you, your allowed credit is used to reduce your tax as a nonrefundable credit only. You don't qualify for a refundable portion of the AOTC if:

1. You were:

   a. Under age 18 at the end of the tax year, or

   b. Age 18 at the end of the tax year and your earned income4 was less than one-half of your support, or

   c. Over age 18 and under age 24 at the end of 2024 and a full-time student and your earned income was less than one-half of your support.​​​​

2. At least one of your parents was alive at the end of the tax year.
3. You are filing a return as single, head of household, qualifying surviving spouse, or married filing separately for the tax year.

4 Earned income includes wages, salaries, professional fees, and other payments received for personal services actually performed. Additionally, earned income includes the part of any scholarship or fellowship grant that represents payment for teaching, research, or other services performed by the student that are required as a condition for receiving the scholarship or fellowship grant.

How to claim an education credit

Complete the Form 8863, Education Credit and attach it to your Form 1040 or 1040-SR, U.S. Income Tax Return.

To be eligible for an education credit, the law requires the student to have received Form 1098-T, Tuition Statement, from an eligible educational institution, domestic or foreign. Generally, students get the form from their school by Jan. 31.

If you received a Form 1098-T, this statement provides information that will help you figure your credit. The form will have an amount in Box 1 to show the amounts received during the year. However, the amount on Form 1098-T might be different from the amount you actually paid and are deemed to have paid. The form may not reflect the total or accurate amount of qualified education expenses you can claim. For information on what amount to claim, see qualified education expenses in Tax Benefits for Education, Pub. 970. Check the form to make sure it’s correct. If it isn’t correct or you don’t receive the form but should have, contact the institution.

If you didn’t receive Form 1098-T, you may still be eligible to claim a credit. Contact the school to request the missing form and keep documentation of the communication with the college requesting the Form 1098-T.

The institution isn't required to furnish Form 1098-T if the student:

• Is a qualified nonresident alien.
• Has qualified education expenses paid entirely with scholarships or under a formal billing arrangement.
• Is enrolled in courses for which no academic credit is awarded.

To claim a credit without Form 1098-T and you otherwise qualify, show that the student was enrolled at an eligible institution and substantiate the payment of the qualified tuition and related expenses.

How to prevent education credit errors

Make sure you’re qualified before claiming the credit and avoid common education credit errors. Keep copies of all documents you used to determine eligibility and the credit amount.

If we audit your return and find your claim is incorrect and you don’t have the documents to show you qualified, you:

• Must pay back the amount of the credit you received in error with interest.
• May also be charged an accuracy or a fraud penalty.
• Can be banned from claiming AOTC credit for 2 to 10 years.

If your AOTC claim was disallowed in a previous tax year, you may need to file Form 8862  before claiming the credit in future tax years.

 Adoption Credit

Eligibility

You are eligible for the Adoption Credit if you meet these criteria:

• Your modified adjusted gross income (MAGI) was $259,190 or less in 2025. The credit is available but reduced if your MAGI was between $259,191 and $299,189. The credit is unavailable if your MAGI was $299,190 or more. 
• If married, you must file jointly to claim the credit. Exceptions exist for married filing separately, and you can amend past returns to change your filing status if needed.
• You may qualify if you're a registered domestic partner in a State that allows second-parent adoption. However, you cannot claim the credit for expenses related to adopting your spouse’s child.

• A “qualified child” for the Adoption Credit must be:

  • Under age 18, or
  • Physically or mentally incapable of self-care.

Qualified expenses

Qualified adoption expenses are reasonable and necessary expenses you paid to adopt, including:

• Adoption fees
• Attorney fees
• Court costs
• Travel expenses (including meals and lodging) while away from home
• Other expenses directly related to, or for the principal purpose of, the legal adoption
• Expenses paid before identifying an eligible child, such as home study fees

Expenses that don’t qualify for the credit

Expenses aren’t eligible if they are:

• To adopt your spouse’s child
• For a surrogate parent arrangement
• Allowed for another federal tax credit or deduction
• Paid by a Federal, State or local program
• Reimbursed by your employer

Exclude expenses from income

If your employer provides adoption benefits for qualified expenses, you may not have to include those benefits in your income, which means you may not have to pay taxes on them. You can exclude up to $17,280 from your income in 2025 if your employer paid you those benefits:

• Under a written qualified adoption assistance program
• Directly or through a third party

You can find these payments on your Form W-2, Box 12, Code T, or your salary may have been reduced to pay these benefits.

Subtract this employer-provided benefit from your income before you calculate the adoption tax credit. See Employer-Provided Adoption Benefits for more information.

Rules for children with special needs

Beginning in 2025, Indian tribal governments have the same authority as State governments to determine whether a child has special needs for the purpose of claiming the Adoption Credit.

For special needs adoptions, a child qualifies if they:

• Are a U.S. citizen, and

• A state or Indian tribal government has determined the child: 

  • Can't or shouldn't be returned to their parents’ home, and
  • Is not likely to be adopted without assistance to the adoptive family.

Acceptable documentation of the state or Indian tribal government’s determination of special needs includes, but is not limited to:

• An adoption assistance or subsidy agreement issued by the state, tribal court or tribal government representative
• Certification from the state, county or tribal welfare agency, or tribal government verifying that the child is approved to receive adoption assistance
• Certification from the state, county, or tribal welfare agency, or tribal government verifying that the child has special needs
• An official letter on state, county, or tribal government letterhead confirming the special needs determination

Find examples of State and Indian tribal government determinations for special needs in the Instructions for Form 8839, Qualified Adoption Expenses.

If you adopt a child with special needs, you may be able to claim:

• The full income exclusion, even if your employer didn’t pay expenses (if your employer has a written qualified adoption assistance program)
• The full credit even if you didn't pay any qualified adoption expenses

When to claim the credit

• Domestic adoptions: Claim expenses each year as you incur or pay them as long as the adoption is finalized. Claim expense the year after you incur or pay them if the adoption is still in progress and not final. If the child is a U.S. citizen or resident, you may claim the credit even if the adoption is unsuccessful.
• Foreign adoptions: Claim expenses once the adoption is final. When it’s final, you can claim all eligible expenses you paid, including in past years.
• Adoption of children deemed by a state or Indian tribal government welfare agency as special needs or hard to place: Claim expenses when the adoption is final.

Find examples of these timing rules to claim the credit in the Instructions for Form 8839, Qualified Adoption Expenses.

Figure the credit and exclusion amounts

The credit amount applies to the adoption of each child individually, not each calendar year. If you claim expenses in more than one year for the same adoption (final or in progress), you must subtract past credit amounts you claimed from your remaining credit.

Example: You claimed a $3,000 Adoption Credit in 2024 for expenses incurred in 2023 for the adoption of a child that was not finalized during that year.  In 2025, you paid $17,280 for additional expenses related to the adoption of the same child, which was finalized during the year.  Since you are claiming expenses related to the adoption of the same child and have already claimed a $3,000 Adoption Credit in past years, you can only claim a credit of $14,280 in 2025 ($17,280 less the $3,000 credit you previously claimed).

The income exclusion is in addition to the credit, but you can’t claim both for the same expenses. You must claim any allowable exclusion before claiming any allowable credit. To do this, complete Part III of Form 8839 before you complete Part II.

Example: In 2025, you paid $10,000 in qualified adoption expenses, and your employer reimbursed you for $4,000. You can exclude $4,000 from your income. Your maximum credit is $6,000 ($10,000 less the $4,000 employer reimbursement).

If you adopt a child deemed to be special needs (previously defined), you may be able to take the income exclusion even if your employer didn’t pay qualified expenses.

Claim the credit

To claim the Adoption Credit or exclusion:

• Complete Form 8839, Qualified Adoption Expenses, and attach the form to your tax return.
• Report the required information about the eligible child on Form 8839, Part I. The child’s identifying number can be their Social Security number, adoption taxpayer identification number (ATIN) or individual taxpayer identification number (ITIN). Use Form W-7A PDF, Application for Adoption Tax Identification Number for Pending U.S. Adoptions (Instructions PDF), to receive an ATIN. Note: See Instructions for Form 8839 if you can’t give complete information about an eligible child you tried to adopt in prior years because the adoption was either unsuccessful or wasn’t final by the end of 2025.
• Keep the adoption documentation for your records.

Amend an incorrect return

If you claimed an incorrect credit amount, file an amended return. You can check the status of an amended return around 3 weeks after you submit it. You should generally allow 8 to 12 weeks for your Form 1040-X to be processed.

If you claimed the credit and we reject or reduce it, you can consider appealing it.