Step‑by‑Step Guide: How To Claim the Earned Income Tax Credit (EITC) When You File Taxes

The Earned Income Tax Credit (EITC) is a federal tax credit that can lower your tax bill and, in many cases, provide a refund even if you owe little or no tax. Many people who qualify never claim it, often because they are unsure how it works or what steps to take during tax filing.

This guide explains, in plain language, how people typically claim the EITC when filing federal income tax returns, what to prepare, and how to move forward through official IRS and tax-filing channels. HowToGetAssistance.org is an informational site only; it is not an IRS office, application portal, or tax preparer.

What Is the Earned Income Tax Credit (EITC)?

The EITC is a federal tax credit for:

• Low- and moderate-income workers
• People with or without qualifying children
• Those who have earned income from work (wages, salary, self-employment, etc.)

If you qualify:

• The EITC can reduce the amount of tax you owe.
• If the credit is more than your tax owed, you may receive the difference as a tax refund.

You must file a federal tax return and meet all IRS rules to claim it, even if you are not otherwise required to file.

Who Typically Qualifies for the EITC?

Eligibility for the EITC depends on several factors. IRS rules can change, so the most accurate and current details are always on the official IRS website or through the IRS phone line.

In general, to qualify for the EITC, you must:

• Have earned income from employment or self-employment
• Have a valid Social Security number (and so must your spouse and any qualifying children)
• Use a filing status that is allowed for the credit
• Meet income limits set by the IRS for that tax year
• Be a U.S. citizen or resident alien for the entire year (with limited exceptions)
• Not file Form 2555 (related to foreign earned income)

Filing status and EITC

Most of the time, the EITC can be claimed if your filing status is:

• Single
• Head of Household
• Married Filing Jointly
• Qualifying Surviving Spouse

The IRS generally does not allow you to claim the EITC if you file as:

• Married Filing Separately

With or without qualifying children

You can claim the EITC:

• With qualifying children – often a larger credit.
• Without qualifying children – the credit is usually smaller, but still available if you meet age, income, and other rules.

For a child to “count” for the EITC, the child usually must:

• Be your son, daughter, stepchild, adopted child, foster child, or a qualifying relative like a sibling or grandchild
• Live with you in the United States for more than half the year
• Meet age rules (under a certain age, or a full-time student, or permanently and totally disabled)
• Not file a joint return with someone else (except in limited situations)

Because these rules are detailed, many people find it helpful to use:

• The IRS EITC Assistant (an online tool available on the official IRS site)
• A qualified tax preparer or IRS-certified volunteer

Key Documents to Gather Before You Claim the EITC

Being organized before you start your tax return makes it easier to claim the EITC correctly and avoid delays.

Common documents people gather include:

• Personal identification
  • Social Security cards (or numbers) for:
    • You
    • Your spouse (if filing jointly)
    • Any qualifying children
• Income records
  • W‑2 forms from employers
  • 1099 forms (for self-employment, gig work, contract jobs, interest, etc.)
  • Records of cash income or tips (for self-employed work)
• Family and residency documentation (especially if claiming children)
  • Birth certificates or adoption papers for children
  • School, medical, or childcare records showing the child’s address and that the child lived with you
  • Custody or support agreements, if applicable
• Tax-related information
  • Last year’s tax return (if you filed one)
  • Bank routing and account number if you want direct deposit of a refund

If you use a tax preparer or visit a free tax preparation site, they will typically tell you what to bring. It is common to call ahead or check their checklist online.

Step‑by‑Step: How To Claim the EITC When Filing Your Tax Return

You claim the EITC on your federal income tax return, usually using:

• Form 1040 or Form 1040-SR, and
• Schedule EIC if you have qualifying children

The exact forms and schedules can change, so it is wise to check the latest IRS instructions.

Step 1: Confirm that you may qualify

Before you start your return, it helps to check whether you appear to qualify.

You can:

• Use the EITC questionnaire/tool on the IRS official site
• Talk with a qualified tax preparer
• Visit an IRS-certified Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site, if you qualify for free help

You’ll usually be asked about your:

• Income and type of work
• Filing status
• Children (if any) and where they lived during the year

Step 2: Choose how you will file your taxes

You can typically file your federal return in one of these ways:

1. IRS Free File (online, for eligible incomes)

   • Available each year through the official IRS website
   • Uses partner software for those under certain income thresholds

2. Free tax preparation programs (in person)

   • VITA (Volunteer Income Tax Assistance) – usually for people with lower/moderate income, people with disabilities, and those with limited English
   • TCE (Tax Counseling for the Elderly) – often focused on taxpayers age 60 or older
   • These are usually located at community centers, libraries, nonprofit agencies, or local organizations
   • You can find them through the IRS official site or toll-free IRS phone number

3. Commercial tax software or paid preparers

   • Many people use online tax software or visit a paid tax preparation office
   • If you choose a paid preparer, you may want to:
     • Ask if they are experienced with EITC rules
     • Request a clear explanation of fees before they start

4. Paper return by mail

   • You can fill out Form 1040 (and related forms) by hand using the official IRS instructions
   • This method often takes longer to process, especially for refunds

Regardless of method, the EITC is claimed on your return itself; there is no separate EITC application form.

Step 3: Fill out the main tax return (Form 1040 / 1040-SR)

On your federal return, you’ll provide:

• Your name, address, and Social Security number
• Your filing status (Single, Head of Household, Married Filing Jointly, etc.)
• Your income and adjustments (from W‑2s, 1099s, self-employment, etc.)

The return will guide you to the section about tax credits. Most tax software and VITA/TCE volunteers ask you EITC questions automatically as you enter your income and family information.

Step 4: Complete Schedule EIC (if you have qualifying children)

If you are claiming the EITC with qualifying children, you typically fill out Schedule EIC. This schedule usually asks for each child’s:

• Name
• Social Security number
• Relationship to you
• Year of birth
• Months lived with you in the United States during the year
• Whether the child is a full-time student or disabled

It is important to:

• Use the exact name and Social Security number shown on the child’s official documents
• Answer truthfully about where the child lived and for how long

Tax software often fills Schedule EIC automatically based on your answers. With paper forms, you fill this schedule by hand.

Step 5: Let the tax software or instructions calculate your EITC amount

The EITC amount depends on:

• Your earned income
• Your adjusted gross income (AGI)
• Number of qualifying children (0, 1, 2, or 3+)
• Your filing status

Most people rely on:

• Tax software that calculates the EITC automatically, or
• VITA/TCE volunteers or professional preparers who use IRS tables and worksheets

If you are filing on paper, the IRS instructions for Form 1040 and EITC generally include:

• EITC worksheets
• Credit tables where you can look up your amount based on income and number of children

Step 6: Review your information carefully

Before you sign and file your return, check for common EITC mistakes:

• Names and Social Security numbers typed correctly for each person
• Kid’s residency: You did not count a child who did not live with you long enough to qualify
• Filing status is correct (for example, Head of Household vs. Single)
• Self-employment income is reported accurately, even if you did not receive a 1099

Errors can cause:

• Delays in your refund
• Reduced or denied EITC
• Future years where the IRS requires extra documentation before allowing you to claim EITC again

Step 7: File your tax return through an official IRS channel

You can submit your return:

• Electronically (e‑file) through:
  • IRS Free File (if eligible)
  • Participating tax software
  • A preparer that offers e‑file
• By mail to the IRS address listed in the official instructions for your area and filing type

HowToGetAssistance.org does not receive, transmit, or process tax returns; filing must be done directly through IRS-approved methods or authorized tax preparers.

If you expect a refund (including EITC), many people choose:

• Direct deposit to a checking or savings account for faster access

What Happens After You Claim the EITC?

After you file:

1. The IRS processes your return.

   • E‑filed returns are usually processed faster than paper returns.
   • If you claimed the EITC, your refund may be held until a certain date each year due to federal law that aims to reduce fraud.

2. You may receive your refund.

   • If everything is correct, your refund (which may include your EITC) is typically:
     • Deposited into your bank account if you chose direct deposit, or
     • Mailed as a paper check

3. The IRS may ask for more information.

   • If something on your return is unclear or doesn’t match IRS records, the IRS may:
     • Send you a letter asking for documents (like proof a child lived with you)
     • Delay your refund until you respond

Always read IRS letters carefully and respond by the deadlines listed in the letter.

Simple Overview: Your EITC Claim Process at a Glance

Common Reasons EITC Claims Get Delayed or Denied

People often run into problems claiming the EITC for a few predictable reasons:

• Incorrect Social Security numbers or names

  • Typo or mismatch with Social Security Administration records

• Child does not meet EITC residency or relationship rules

  • The child did not live with the taxpayer more than half the year
  • The child is not a qualifying relative as defined by the IRS

• Multiple people claim the same child

  • For example, both parents try to claim the same child in a shared custody situation
  • The IRS uses specific “tie-breaker” rules to decide who can claim the child

• Unreported or incorrectly reported income

  • Self-employment or gig income not listed
  • Confusion between earned income and other types of income

• Ineligible filing status

  • Filing as Married Filing Separately, which generally cannot claim EITC

• Prior disallowance of EITC

  • If a past EITC claim was reduced or denied for certain reasons, the IRS may require you to:
    • File Form 8862 (Information to Claim Certain Credits After Disallowance)
    • Provide extra documentation

If your EITC is denied, the IRS usually sends a notice explaining why and what you can do next.

If Your EITC Claim Is Questioned or Denied

If you receive a letter from the IRS about your EITC:

1. Read the notice carefully.

   • Note any deadlines and what documents they want (for example, school letters, lease, medical records showing your address and the child’s address).

2. Gather the requested proof.

   • Common documents include:
     • Lease agreements or utility bills
     • School or daycare records with addresses
     • Medical records with addresses
     • Court documents or custody orders

3. Respond by the deadline using official instructions.

   • The letter usually tells you whether you can:
     • Mail documents
     • Fax documents
     • Respond online (for certain types of notices)

4. Ask for help if you’re unsure.

   • You can contact:
     • The IRS directly using the phone number on the notice
     • A tax professional
     • A local Low-Income Taxpayer Clinic (LITC), if you qualify; they may assist with IRS disputes, sometimes at low or no cost

If you disagree with the IRS decision, the notice generally describes appeal or review options, including how to request an appeal within given timeframes.

What If You Didn’t Claim the EITC in a Past Year?

Many people learn about the EITC after they already filed their taxes. In some situations, you may be able to go back and claim the credit for earlier years by filing an amended tax return.

Typical steps include:

1. Check if you were eligible in that year.

   • Income, filing status, and family situation for that specific year matter.

2. Get the correct year’s forms.

   • The IRS provides prior-year Form 1040 and instructions.

3. File an amended return (Form 1040‑X).

   • You may need to add or update:
     • EITC information
     • Schedule EIC for qualifying children

Time limits generally apply to amending and claiming refunds, so it is important to review IRS rules or ask a tax professional about how many years back you can go.

If You Don’t Qualify for the EITC: Other Options to Explore

If you find that you do not qualify for the EITC, you may still be eligible for other tax benefits or support programs. Some people look into:

• Child Tax Credit (CTC) or Additional Child Tax Credit
• Child and Dependent Care Credit (for childcare expenses)
• Education credits (such as American Opportunity Credit or Lifetime Learning Credit)
• State or local credits
  • Some states have their own state-level earned income credits or similar benefits
  • Check with your state revenue department or official state tax website

Outside of tax credits, you can explore:

• State and local benefits portals for help with:
  • Food assistance (such as SNAP)
  • Health coverage (such as Medicaid or CHIP)
  • Housing programs or utility assistance
• 2‑1‑1 information lines in many areas, which can connect you with local assistance organizations

These services are generally accessed through official websites, agency offices, or recognized community organizations, not through HowToGetAssistance.org.

How To Make Sure You’re Using Official Channels and Avoid Scams

Because the EITC often results in a refund, it can be a target for scams. A few practical tips:

• Confirm you are on an official IRS site or line.

  • Official IRS web addresses typically end in “.gov”.
  • Official IRS phone numbers are listed on IRS publications and the IRS website.

• Be cautious about tax preparers who:

  • Base their fee on a percentage of your refund
  • Refuse to sign your return or do not include a Preparer Tax Identification Number (PTIN)
  • Promise “guaranteed” large refunds without seeing your information

• Protect your personal data.

  • Never send your Social Security number or tax documents through unsecured channels like unencrypted email or text messages.
  • Be wary of anyone asking for payment in gift cards, prepaid debit cards, or cryptocurrency in connection with tax services or supposed IRS debts.

• If unsure, verify.

  • Contact the IRS through its official phone line.
  • Check with local consumer protection offices or state attorneys general if you suspect fraud.

By understanding how the EITC works, gathering the right documents, and filing your tax return through official IRS-approved channels, you can take clear, confident steps toward claiming the Earned Income Tax Credit you qualify for.