2025 Earned Income Tax Credit
For 2025, the Earned Income Tax Credit is $4,328 (Maximum credit, one child), $7,152 (Maximum credit, two children), $8,046 (Maximum credit, three or more children) and 5 more figures below.
| Item | One child | Two children | Three or more children | Childless filers |
|---|---|---|---|---|
| Maximum credit | $4,328 | $7,152 | $8,046 | $649 |
| Earned income amount | $12,730 | $17,880 | $17,880 | $8,490 |
Effective 2025-01-01Source: Rev. Proc. 2024-40 (IRS)Verified 2026-08-29
Compared with 2024
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Maximum credit, one child | $4,213 | $4,328 | +$115 (+2.7%) |
| Maximum credit, two children | $6,960 | $7,152 | +$192 (+2.8%) |
| Maximum credit, three or more children | $7,830 | $8,046 | +$216 (+2.8%) |
| Maximum credit, childless filers | $632 | $649 | +$17 (+2.7%) |
| Earned income amount, one child | $12,390 | $12,730 | +$340 (+2.7%) |
| Earned income amount, two children | $17,400 | $17,880 | +$480 (+2.8%) |
| Earned income amount, three or more children | $17,400 | $17,880 | +$480 (+2.8%) |
| Earned income amount, childless filers | $8,260 | $8,490 | +$230 (+2.8%) |
Who it applies to
The earned income credit is claimed by individual taxpayers with earned income, and the amount depends on how many qualifying children the taxpayer has and on filing status. Rev. Proc. 2024-40 sets a maximum credit of $8,046 where there are three or more qualifying children and $649 where there are none, with separate columns for one child and for two. The credit is not a flat payment. The earned income amount is the level of earned income at or above which the maximum credit is allowed, so a taxpayer earning less than that receives less than the maximum. Above the threshold phaseout amount the credit begins to fall, and at or above the completed phaseout amount no credit is allowed. The phaseout amounts shown for married taxpayers filing a joint return include the increase provided in § 32, and the amounts shown for all other filing statuses also apply to married taxpayers who are not filing jointly and satisfy the special rules for separated spouses in § 32.
What changed this year, and why
Rev. Proc. 2024-40 sets the amounts used to determine the earned income credit under § 32 for taxable years beginning in 2025. The maximum credit is $8,046 for a taxpayer with three or more qualifying children and $649 for a taxpayer with none; separate amounts apply for one qualifying child and for two. Alongside the maximum credit the revenue procedure adjusts three other amounts for each family size: the earned income amount, the threshold phaseout amount and the completed phaseout amount, each stated once for married taxpayers filing a joint return and once for all other filing statuses.
Common questions
- What is the maximum earned income tax credit for 2025?
- For taxable years beginning in 2025, the largest maximum credit Rev. Proc. 2024-40 states under § 32 is $8,046, for a taxpayer with three or more qualifying children. A taxpayer with no qualifying children has a maximum credit of $649. The revenue procedure states separate maximum amounts for taxpayers with one qualifying child and with two, which fall between those figures.
- What is the maximum EITC with no children in 2025?
- It is $649 for taxable years beginning in 2025. That figure is the maximum amount of credit for a taxpayer with no qualifying children, and it is reached only at or above the earned income amount the revenue procedure states for that column. Childless filers also have their own threshold phaseout and completed phaseout amounts, which are lower than those for taxpayers with children.
- How much is the EITC for a family with three or more children?
- The maximum credit is $8,046 for taxable years beginning in 2025. Rev. Proc. 2024-40 uses one column for three or more qualifying children, so a fourth or fifth child does not raise the ceiling above $8,046. Reaching that maximum requires earned income at or above the earned income amount for that column, and keeping it requires income below the threshold phaseout amount.
- Do I have to earn a certain amount to get the full EITC?
- Yes. Rev. Proc. 2024-40 defines the earned income amount as the amount of earned income at or above which the maximum amount of the earned income credit is allowed. Below that level the credit is smaller than the maximum, so a taxpayer with three or more qualifying children does not reach $8,046, and a childless taxpayer does not reach $649, on very low earnings.
- At what income does the earned income credit phase out in 2025?
- The revenue procedure sets two points for each family size and filing status. The threshold phaseout amount is the adjusted gross income, or earned income if greater, above which the maximum credit begins to phase out. The completed phaseout amount is the adjusted gross income, or earned income if greater, at or above which no credit is allowed. Married taxpayers filing jointly have higher amounts than other filers.
- Can investment income disqualify me from the EITC?
- Yes. Rev. Proc. 2024-40 states that for taxable years beginning in 2025 the earned income tax credit is not allowed under § 32 if the aggregate amount of certain investment income exceeds the limit the revenue procedure sets for the year. That rule is a cliff rather than a phaseout: exceeding it removes the credit entirely, whatever the taxpayer's earned income or number of qualifying children.
- Can married taxpayers who file separately claim the earned income credit?
- Rev. Proc. 2024-40 addresses this indirectly. The threshold and completed phaseout amounts it shows for all other filing statuses also apply to married taxpayers who are not filing a joint return and who satisfy the special rules for separated spouses in § 32. The higher amounts, which include the increase provided in § 32 for joint filers, are reserved for married taxpayers filing a joint return.
- Where do the 2025 earned income credit amounts come from?
- From section 2.06 of Rev. Proc. 2024-40, which sets the amounts used to determine the credit under § 32 for taxable years beginning in 2025, including the maximum credit of $8,046 and $649. The revenue procedure adds that the instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.
Every amount on this page is a published figure rather than yours. The Earned income left to the full credit takes the number you enter and works it out against them, showing which published figure it used.
The income at which the credit stops growing
The earned income amount marks the point where the EITC reaches its peak for your filing category. Once your earned income hits this level, the credit stops growing and stays at the maximum until your income passes the threshold phaseout amount. For 2025, taxpayers with one qualifying child reach the maximum credit of $4,328 at $12,730 of earned income. Those with two children or three or more children both reach their maximum credits ($7,152 and $8,046 respectively) at $17,880. Childless filers max out their $649 credit at $8,490 of earned income. If your earned income falls below these amounts, your credit is smaller than the maximum. The IRS measures your earned income against this figure to determine whether you qualify for the full credit before the phaseout begins.
The “earned income amount” is the amount of earned income at or above which the maximum amount of the earned income credit is allowed.
Rev. Proc. 2024-40 (IRS)
Where the credit starts shrinking, and which income counts
The threshold phaseout amount determines where your EITC begins to shrink as your income rises. Once your adjusted gross income or earned income exceeds this level, the credit decreases gradually until it reaches zero at the completed phaseout amount. The IRS uses the greater of your adjusted gross income or earned income when comparing to this threshold. This means if your earned income is higher than your adjusted gross income, the phaseout is triggered by your earned income level rather than your AGI. The threshold sits above the earned income amount at which the credit peaks. For instance, a taxpayer with two children reaches the maximum credit of $7,152 at $17,880 of earned income, but the credit only begins to phase out once income rises past the threshold phaseout amount. Married couples filing jointly receive higher threshold amounts than other taxpayers, as explained in the separate section on joint filer thresholds. Between the threshold and the completed phaseout amount, the IRS tables determine your exact credit.
The “threshold phaseout amount” is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out.
Rev. Proc. 2024-40 (IRS)
The income at which the credit reaches zero
The completed phaseout amount marks the income level where your EITC drops to zero entirely. Once your adjusted gross income or earned income reaches this point, you no longer qualify for any credit, regardless of how many children you have. The IRS compares this amount against the greater of your adjusted gross income or earned income, so either measure can trigger the end of eligibility. For each category of taxpayer, the completed phaseout amount is well above the earned income amount at which the credit peaks. For example, taxpayers with one child see their credit peak at $4,328 once earned income reaches $12,730, but the credit then phases out gradually and vanishes completely once income hits the completed phaseout amount. A taxpayer whose income falls between the threshold phaseout amount and the completed phaseout amount receives a partial credit, which the IRS reads from published tables rather than computing by formula.
The “completed phaseout amount” is the amount of adjusted gross income (or, if greater, earned income) at or above which no credit is allowed.
Rev. Proc. 2024-40 (IRS)
Married filing jointly gets a higher phaseout range
Married couples filing jointly receive higher phaseout thresholds than single filers, heads of household, and other filing statuses. The IRS adds an extra amount to both the threshold phaseout amount and the completed phaseout amount for joint filers, as provided in § 32(b)(2)(B) and adjusted for inflation each year. This means a married couple filing jointly can earn more before their credit begins to shrink and before it phases out entirely. However, the earned income amounts at which the credit peaks remain the same regardless of filing status. For example, whether filing jointly or as head of household, a taxpayer with one child reaches the maximum credit of $4,328 once earned income hits $12,730. The joint-filer advantage applies only to the phaseout range, not to the credit's growth phase or its maximum dollar value. Separated spouses who meet special rules under § 32(d) may also qualify for the higher thresholds even without filing jointly.
The threshold phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase provided in § 32(b)(2)(B), as adjusted for inflation for taxable years beginning in 2025.
Rev. Proc. 2024-40 (IRS)
Too much investment income disqualifies you outright
Even if your earned income is low enough to otherwise qualify for the EITC, excessive investment income disqualifies you from the credit entirely. For 2025, if the total of certain investment income items exceeds $11,950, the earned income tax credit is not allowed at all. This is a hard cutoff with no partial credit available. The rule applies under § 32(i) and operates independently of the phaseout based on earned income or adjusted gross income. Investment income includes items such as interest, dividends, capital gains, and similar passive income. A taxpayer whose investment income is at or below $11,950 is not subject to this disqualifier and may proceed to determine their credit based on their earned income and number of qualifying children. Those whose investment income exceeds the limit receive zero credit regardless of how much they earned from wages or self-employment.
For taxable years beginning in 2025, the earned income tax credit is not allowed under § 32(i) if the aggregate amount of certain investment income exceeds $11,950.
Rev. Proc. 2024-40 (IRS)
Why your credit is read off a table, not multiplied out
The IRS does not publish a simple formula or multiplier to calculate the EITC. Instead, the instructions for the Form 1040 series provide tables that list the exact credit amount for each combination of income level and number of qualifying children. Taxpayers look up their credit by finding the row that matches their income range and the column that matches their filing status and number of children. This table-based approach is necessary because the credit is calculated differently depending on whether income is in the growth phase (below the earned income amount), the plateau (at or above the earned income amount but below the threshold phaseout amount), the phaseout range (between the threshold and completed phaseout amounts), or beyond the completed phaseout amount where no credit is allowed. The tables incorporate all the applicable rates and rounding rules so that taxpayers do not need to perform complex calculations themselves.
The instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.
Rev. Proc. 2024-40 (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2024-40 (IRS)
- Maximum credit, one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $12,730 $17,880 $17,880 $8,490 Maximum Amount of Credit $4,328 $7,152 $8,046 $649
- Maximum credit, two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $12,730 $17,880 $17,880 $8,490 Maximum Amount of Credit $4,328 $7,152 $8,046 $649
- Maximum credit, three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $12,730 $17,880 $17,880 $8,490 Maximum Amount of Credit $4,328 $7,152 $8,046 $649
- Maximum credit, childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $12,730 $17,880 $17,880 $8,490 Maximum Amount of Credit $4,328 $7,152 $8,046 $649
- Earned income amount, one child
Earned Income Amount $12,730
- Earned income amount, two children
Earned Income Amount $12,730 $17,880
- Earned income amount, three or more children
Earned Income Amount $12,730 $17,880 $17,880
- Earned income amount, childless filers
Earned Income Amount $12,730 $17,880 $17,880 $8,490