The IRS usually updates credit amounts annually. The Earned Income Tax Credit is not an exception. For example, the EITC maximum amount in 2024 is $7,830 if you have 3 or more children that qualify. After the cost of living adjustment, it will become $8,046 if you have 3 or more qualifying kids during the Tax Year 2025.
IRS has increased EITC amounts considerably since 2020. The maximum amount of the EITC in 2020 was just $6,660 for taxpayers with 3 or more qualifying children.
New IRS maximum amounts for EITC – Tax Year 2025
The maximum Earned Income Tax Credit amounts for the Tax Year 2025 will be:
If you have no qualifying children, you may qualify for the lowest maximum amount for the EITC in the 2025 Tax Year. In fact, it will be just $649, up from the $632 in the 2024 Tax Year.
Some taxpayers may qualify for the EITC and they just have a single child. One qualifying child can provide you with an Earned Income Tax Credit worth $4,328, up from $4,213. So, there has been an increase of just $17 if you have no kids and of $115 if you have 1 kid.
IRS and the new EITC amounts for 2025 with more than 1 child
As you can see, it is a much higher tax credit if you have qualifying children. The IRS has set the maximum amount for the EITC for taxpayers with 2 children at $7,152 during the Tax Year 2025.
The EITC amount for taxpayers with 2 qualifying children for the Tax Year 2024 is $6,960. Hence, the boost is worth $192. A staggering increase if what you qualify for it.
The largest EITC amount will be for taxpayers with 3 or more qualifying children. They will get up to $8,046 for the 2025 Tax Year, up from $7,830. If you need to find out if you qualify for the Earned Income Tax Credit, all you have to do is use the IRS online EITC Assistant.
Source: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables
