Advertisement
Tax Breaks

Earned Income Tax Credit: A Tax Break for the Middle Class

The EITC can top $6,000 if you have three or more qualifying children.

Even if you don’t owe tax or aren’t required to file a return, there’s a strong incentive for people who work to file anyway: the Earned Income Tax Credit. Depending on your income and how many children you have, this tax credit can be worth as much as $6,242.

The income limits are fairly low. If you have no kids, for example, your earned income and adjusted gross income must each be less than $14,820 if you're single. If you’re married filing jointly, the limit is $20,330. If you have three or more kids and are married, though, your earned income and AGI can be as high as $53,267.

Advertisement - Article continues below

When the tax credit exceeds the amount of taxes owed, the IRS will issue a refund to you. But you must file a return to claim the credit—a step many working Americans fail to take.

Check out 8 more tax breaks for the middle class.

Advertisement
Advertisement

Most Popular

What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
August 13, 2020
5 Tips to Minimize Your Taxes in Retirement
tax planning

5 Tips to Minimize Your Taxes in Retirement

Don’t pay more than you have to. It all starts with a thorough understanding of the basics of how retirement income is taxed.
August 2, 2020
10 Things to Know Before Going to the Hospital (from a Legal Perspective)
personal finance

10 Things to Know Before Going to the Hospital (from a Legal Perspective)

A trip to the ER can be chaotic and scary, but getting your ducks in a row now can definitely help.
August 11, 2020

Recommended

What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
August 13, 2020
Gifts to Minors: LLCs Can Protect Them from Creditors and Predators
family savings

Gifts to Minors: LLCs Can Protect Them from Creditors and Predators

You’ve decided to fund a Uniform Gifts to Minor Account, but have you thought about how to make sure that legacy will be secure?
August 11, 2020
How a Second Stimulus Check Could Differ from Your First One
Tax Breaks

How a Second Stimulus Check Could Differ from Your First One

The HEROES Act, which the House passed in May, would authorize another round of stimulus checks. While the new payments would be similar to the first …
August 11, 2020
Calculating Taxes on Social Security Benefits
social security

Calculating Taxes on Social Security Benefits

Uncle Sam can tax up to 85% of your Social Security benefits if you have other sources of income, such as earnings from work or withdrawals from tax-d…
August 4, 2020