EITC in the United States: Who Can Claim This Tax Credit and Who Is Excluded

The EITC (Earned Income Tax Credit) is a federal US tax credit designed for people who work with low or moderate incomes. If you have worked in the United States, or you are still tied to the US for tax purposes, this article helps you find out whether you can claim it. You will also see why nonresident status often closes the door, which pitfalls await those who don't have a Social Security number (SSN) in time, and how to check your situation with the official tools.

The EITC in Brief: A Refundable Credit for Those Who Work

The US tax authority (IRS) presents the EITC, also called the EIC, as a tax credit for certain working people whose earned income is below $68,675^[1]. A tax credit reduces the amount of tax you owe, and the EIC can also get you a refund^[1].

The credit is called "refundable": even if you owe no tax, you can receive a refund^[2]. This is what sets it apart from a simple tax reduction, which stops at zero.

Your work status does not change the principle: you can claim the EITC whether you work full time, part time, or are self-employed^[3].

The Basic Requirements to Know

The credit is tied to "earned income," so you must work and have earnings from employment to qualify^[1]. Your adjusted gross income (AGI) must also stay under a limit that depends on your situation^[2].

The requirement that most often trips people up is the Social Security number. You need a valid SSN issued no later than the due date of your return, extensions included^[2]. If you (and your spouse, if filing jointly) do not have one by that date, you cannot claim the EIC, either on your original return or on an amended return, even if you obtain an SSN later^[2].

Another threshold to know: according to the New York City page, your investment income for 2025 must have been below $11,950^[3]. Without a qualifying child, the same page also sets an age requirement: you must be between 25 and 64 years old^[3].

Expat or Digital Nomad: Who Can Really Claim It?

This is the decisive point for Hello Mira readers. To claim the EITC, you must be a US citizen or resident alien for the entire year, or a nonresident alien married to a US citizen or resident alien and file a joint return^[2].

In practice, if you were a nonresident alien for part of the year, you cannot claim the EIC, unless your filing status is "married filing jointly"^[1]. That status is only open if your spouse is a US citizen or resident alien and you choose to be treated as a US resident^[1]. In that case, you and your spouse are taxed on your worldwide income^[1].

The case of Americans living abroad points the same way: US citizens and resident aliens based outside the United States remain taxed on their worldwide income^[4]. Their status remains that of a US taxpayer, but that alone does not entitle them to the EITC: the sources consulted here do not detail the effect of living or working abroad, and an expat should verify their case with the IRS or a US tax professional before claiming the credit.

What Counts as Earned Income

For an employee, earned income includes all taxable income received from the employer^[1]. Non-taxable compensation, such as certain dependent care or adoption benefits, is not part of it^[1].

Among the earned income items that do not appear in box 1 of the W-2 form, Publication 596 specifically cites household employee wages and tips not reported to the employer^[1].

For a married couple filing jointly, it is enough that at least one of the two works and has earned income^[1].

State Credits: A Tax System That Varies by State

If you can claim the federal EIC, you may sometimes also claim a similar credit on your state or local return. The IRS refers to IRS.gov/EITC for the list of states offering a state credit^[1]. Rules and amounts vary from state to state: check the website of the tax authority of the state concerned.

In New York, for example, a person eligible for the federal credit is automatically eligible for the state and city credits when they file their state return^[3].

Pitfalls and Things to Watch Out For

• SSN obtained too late: without a valid SSN by the filing deadline (extensions included), the credit is lost, including on an amended return^[2].
• Nonresident status: a nonresident alien, even for part of the year, cannot claim the EITC unless filing jointly with a spouse who is a U.S. citizen or resident alien^[1].
• Children without a valid SSN: a child without a valid SSN does not allow you to calculate the credit "with children." You may still claim the smaller credit for people without an eligible child, if all other conditions are met^[2].
• Separation: if you are married and not filing jointly, you must meet specific conditions: an eligible child who lived with you for more than half the year, and either living apart from your spouse during the last six months of the year or being legally separated. In that case, check the box at the top of the EIC schedule^[2].
• IP PIN: if you, your spouse, or a dependent has been assigned an IP PIN (Identity Protection Personal Identification Number), it must be entered on the return^[5]. An e-file rejection can come precisely from this: the rejection code then indicates whether the requirement concerns you, your spouse, or your dependent^[5].

Check Your Eligibility and Claim the Credit

Before you start, test your situation with the IRS's official tool, the EITC Assistant^[2]. It can also help you estimate the amount of the credit^[6].

To claim the credit, you must file a federal income tax return^[6]. If eligible children are involved, attach Schedule EIC to your return^[6].

You can also claim the credit for past years: you have 3 years to file a claim after the date your return was due^[7].

For free help preparing your return, the City of New York lists the VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs, reachable at 800 906 9887^[3].

Key Takeaways

• First, check your U.S. tax status: citizen or resident alien for the whole year, or nonresident spouse filing jointly.
• Make sure you have a valid SSN before the filing deadline, extensions included.
• Test your case with the EITC Assistant, then check the list at IRS.gov/EITC and your state's tax website for a possible state credit.
• Don't forget past years: the claim deadline is 3 years.
• This article covers the general rules. Calculating the exact amount, the income limits by family situation, and the detailed rules on eligible children require going further into IRS Publication 596. If you are unsure about your resident or nonresident status, get help from a U.S. tax professional.