The Earned Income Tax Credit (EITC): How It Works and Who Receives It

December 3, 2014 – November 14, 2023 R43805

The Earned Income Tax Credit (EITC): How It
November 14, 2023
Works and Who Receives It
Margot L. Crandall-Hollick
The Earned Income Tax Credit (EITC) is a refundable tax credit that boosts the income
Specialist in Public Finance
of eligible low-income workers, especially those with children. Because the credit is

refundable, an EITC recipient need not owe income taxes to receive the benefit.
Gene Falk
Eligibility for and the amount of the EITC are based on a variety of factors, including
Specialist in Social Policy
the amount of earned income and other sources of income, the presence and number of

qualifying children, age requirements for those without qualifying children, and
Conor F. Boyle
residency and taxpayer ID requirements. Taxpayers with income above certain
Analyst in Social Policy
thresholds are ineligible for the credit. These income thresholds vary based on marital

status and number of qualifying children.

The EITC depends on a recipient’s earned income. Specifically, the EITC phases in as a
percentage of earned income (the “credit rate”) until the credit amount reaches its maximum level. The EITC then
remains at its maximum level over a subsequent range of earned income, between the “earned income amount”
and the “phaseout amount threshold.” Finally, the credit gradually decreases to zero at a fixed rate (the “phaseout
rate”) for each additional dollar of adjusted gross income (AGI) (or earned income, whichever is greater) above
the phaseout amount threshold. The specific values of these EITC parameters (e.g., credit rate, earned income
amount) vary depending on several factors, including the number of qualifying children a taxpayer has and the
taxpayer’s marital status, as illustrated in the figure and table below. For 2023, the maximum EITC amounts are
(1) $600 for a taxpayer without children in their household; (2) $3,995 for a taxpayer with one child; (3) $6,604
for a taxpayer with two children; and (4) $7,430 for a taxpayer with three or more children.
EITC Amount by Number of Qualifying Children, Marital Status, and Income, 2023

Source: CRS calculations based on IRS Revenue Procedure 2022-38 and Internal Revenue Code §32.
Congressional Research Service

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

EITC Parameters by Marital Status and Number of Qualifying Children, 2023
Number of Qualifying Children
0
1
2
3 or more
unmarried taxpayers (single and head of household filers)
credit rate
7.65%
34%
40%
45%
earned income amount
$7,840
$11,750
$16,510
$16,510
maximum credit amount
$600
$3,995
$6,604
$7,430
phaseout amount threshold
$9,800
$21,560
$21,560
$21,560
phaseout rate
7.65%
15.98%
21.06%
21.06%
income where credit = 0
$17,640
$46,560
$52,918
$56,838
married taxpayers (married filing jointly)
credit rate
7.65%
34%
40%
45%
earned income amount
$7,840
$11,750
$16,510
$16,510
maximum credit amount
$600
$3,995
$6,604
$7,430
phaseout amount threshold
$16,370
$28,120
$28,120
$28,120
phaseout rate
7.65%
15.98%
21.06%
21.06%
income where credit = 0
$24,210
$53,120
$59,478
$63,398
Source: IRS Revenue Procedure 2022-38 and Internal Revenue Code §32.
The EITC is provided to individuals and families once a year, in a lump-sum payment after individuals and families file their
federal income tax returns. Like all tax credits, the EITC can reduce income tax liability. And because the EITC is a
refundable tax credit, if a taxpayer’s EITC is greater than what they owe in income taxes, they can receive the difference (the
portion of the credit that remains after offsetting any income tax liability) as a tax refund (or an increase in their tax refund, if
they are already receiving a refund). The amount of the credit which exceeds their income tax liability is sometimes referred
to as the refundable portion of the credit.
The amount of the credit a taxpayer receives is based on the prior year’s earned income and family composition. In other
words, the 2023 EITC is based on 2023 earned income (and other 2023 factors), but will not be paid until tax returns are filed
in 2024.
The EITC is not counted as income in determining eligibility for or the amount of any federally funded public benefit
program. An EITC refund that is saved by a taxpayer does not count against the resource limits of any federally funded
public benefit program for 12 months after the refund is received.
According to the most recent IRS data, for 2020 (i.e., 2020 income tax returns filed in 2021), 26.0 million taxpayers (16% of
all taxpayers filing an individual income tax return) received a total of $59 billion from the EITC, making the credit the
largest need-tested antipoverty program that provides cash benefits. In that year, 96% of all EITC dollars were received by
families with children. There was considerable variation in EITC receipt by state, with a greater share filed in certain
southern states compared to other regions of the country.
Congressional Research Service

link to page 10 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Introduction
The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers with
relatively low earnings. Because the credit is refundable, an EITC recipient need not owe taxes to
receive the benefit. The credit is authorized by Section 32 of the Internal Revenue Code (IRC
§32) and administered as part of the federal income tax system. According to IRS data, 26 million
taxpayers received a total of $59 billion from the EITC for 2020, making the credit the largest
need-tested antipoverty program that provides cash benefits.
Under current law, the EITC is calculated based on a recipient’s earned income, using one of
eight different formulas, which vary depending on several factors, including the number of
qualifying children a taxpayer has (zero, one, two, or three or more) and their marital status
(unmarried or married). All else being equal, the amount of the credit tends to increase with the
number of eligible children the EITC recipient has. Indeed, most of the EITC’s benefits—96% of
EITC dollars for 2020—went to families with children.
This report provides an overview of the EITC, first discussing eligibility requirements for the
credit, followed by how the credit is computed and paid. The report then provides data on the
growth of the EITC since it was first enacted in 1975. Finally, the report concludes with the most
recent IRS data on the EITC from 2020 income tax returns, examining EITC receipt by number
of qualifying children, income level, tax filing status, and location of residence.
Eligibility for the EITC
A taxpayer must fulfill the following requirements to claim the EITC:
1. The taxpayer must file a federal income tax return.
2. The taxpayer must have earned income.
3. The taxpayer must meet certain residency requirements.
4. The taxpayer’s children must meet relationship, residency, and age requirements
to be considered qualifying children for the credit.
5. Childless workers who claim the credit must be between ages 25 and 64.1 (This
age requirement does not apply to EITC claimants with qualifying children.)
6. The taxpayer’s investment income must be below a certain amount.
7. The taxpayer must not be disallowed the credit due to prior fraud or reckless
disregard of the rules when they previously claimed the EITC.
8. The taxpayer must provide the Social Security number (SSN) for themselves,
their spouse, if married, and any children for whom the credit is claimed.2
Additionally, a taxpayer with income above a certain dollar amount (labeled as “income where
credit = 0” in Table 1) will be ineligible for the credit. Given that this income level is dependent

1 A taxpayer without qualifying children who can be claimed as a dependent on another person’s tax return is ineligible
for the EITC. In addition, claimants without qualifying children must live in the United States for more than half the
year.
2 The SSN must be issued to a citizen of the United States or pursuant to a provision of the Social Security Act relating
to the lawful admission for employment in the United States. See IRC §§32(m).
Congressional Research Service

1

link to page 10 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

on the number of qualifying children and marital status of the taxpayer, this requirement is
discussed in greater detail in the section of the report entitled “Calculating the EITC.”
Requirements (1) through (8) are discussed in detail below.
Filing a Federal Income Tax Return
A person must file a federal income tax return to be eligible for the EITC. Those who do not file a
federal income tax return cannot receive the EITC.
The EITC can be claimed by taxpayers filing their tax return as married filing jointly, head of
household, or single.3 In certain cases, taxpayers can claim the EITC if they use the filing status
of married filing separately.4 If the taxpayer has a qualifying child, the taxpayer must include the
child’s name and Social Security number on a separate schedule (Schedule EIC) filed with the
federal tax return.5
Earned Income
A taxpayer must have earned income to claim the EITC. Earned income for the EITC is defined
as wages, tips, and other compensation included in gross income. It also includes net self-
employment income (self-employment income after deduction of one-half of Social Security
payroll taxes paid by a self-employed individual). In addition, according to the Internal Revenue
Service, those who provide care for disabled individuals and receive certain nontaxable payments
under a Medicaid waiver may treat those payments as earned income for the purposes of the
EITC.6
In addition, servicemembers may elect to include combat pay in their earned income when
calculating the EITC. All income earned by a member of the Armed Forces while in a designated
combat zone is considered combat pay and is normally not included in taxable income. However,
a taxpayer may elect to include combat pay as earned income for the purpose of calculating the

3 There is an additional filing status that may claim the EITC—“qualifying widow(er) with dependent child.”
Generally, taxpayers may file their tax return as married filing jointly in the year their spouse died. A taxpayer may be
eligible to use qualifying widow(er) with dependent child as his or her filing status for two years following the year his
or her spouse died. This filing status entitles the taxpayer to use joint return tax rates and the highest standard deduction
amount (if he or she does not itemize deductions). It does not entitle the taxpayer to file a joint return. The taxpayer
calculates the EITC using the formula for other unmarried tax filing statuses (head of household and single). The
eligibility rules for this filing status can be found on page 10 of IRS Publication 501, available at http://www.irs.gov/
pub/irs-pdf/p501.pdf.
4 As a result of a permanent change to the law made by the American Rescue Plan Act (ARPA; P.L. 117-2), an
individual who is married and files their tax return separately from their spouse can claim the EITC if the individual
lives with a child for whom they can claim the EITC for more than half the year and either: (1) does not have the same
principal place of abode as their spouse for the last six months of the year; or (2) has a decree, instrument, or agreement
and does not live with their spouse at the end of the year.
5 The most recent version of this form can be found at https://www.irs.gov/forms-pubs/about-schedule-eic-form-1040.
6 These payments are provided to individual care providers for the care of eligible individuals under a state Medicaid
Home and Community-Based Services waiver program described in §1915(c) of the Social Security Act and are not
subject to federal taxation. See IRS Notice 2014-7; IRS, Certain Medicaid Waiver Payments May Be Excludable From
Income, February 23, 2015, https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-
from-income; and Feigh v. Commissioner, No. 20163-17, 152 T.C. 267, May 15, 2019.
Congressional Research Service

2

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

EITC.7 Generally, servicemembers will make this election if it results in a larger credit. (Using
combat pay to calculate the EITC does not make the combat pay taxable income.)
Certain forms of income are not considered earned income for the purpose of the EITC. These
include pension and annuity income, income of nonresident aliens not from a U.S. business,
income earned while incarcerated for work in a prison, and TANF benefits paid in exchange for
participation in work experience or community service activities.
Finally, taxpayers who claim the foreign earned income exclusion (i.e., they file Form 2555 or
Form 2555EZ with their federal income tax return) are ineligible to claim the EITC.8
Residency Requirements
Under current law, an EITC recipient must be a resident of the United States, unless the recipient
resides in another country because of U.S. military service.9
Qualifying Children
An EITC recipient’s qualifying child must meet three requirements.10 First, the child must have a
specific relationship to the taxpayer (son, daughter, step child or foster child,11 brother, sister,
half-brother, half-sister, step brother, step sister, or descendent of such a relative). Second, the
child must share a residence with the taxpayer for more than half the year in the United States.12
Third, the child must meet certain age requirements; namely, the child must be under the age of
19 (or age 24, if a full-time student) or be permanently and totally disabled.
As a result of these three requirements, a child may be the qualifying child of more than one
taxpayer in the same household. For example, a child who lives with a single parent, grandparent,
and aunt in the same home could be a qualifying child of all three of these individuals. But only
one of these individuals can claim the qualifying child for the EITC, and the others cannot. In
these cases, “tiebreaker” rules for who can claim the child for the EITC apply.13 If, as a result of

7 For more information, see https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/special-eitc-
rules.
8 See Internal Revenue Code (IRC) §32(c)(1)(C) and http://www.irs.gov/Individuals/EITC,-Earned-Income-Tax-
Credit,-Questions-and-Answers.
9 ARPA (P.L. 117-2) permanently provided the U.S. Treasury with the authority to make payments to Puerto Rico,
American Samoa, and mirror-code territories for amounts those territories pay out in their own territorial EITCs. For
Puerto Rico and American Samoa, such payments are contingent upon those territories increasing the amount of their
EITC or enacting an EITC, respectively. The law also provided Puerto Rico with matching funds, up to $600 million
per year, to provide a larger credit to its residents.
10 If an individual is the qualifying child for the purposes of the EITC of another person, that individual cannot
themselves claim the EITC. For more information, see http://www.irs.gov/Individuals/EITC,-Earned-Income-Tax-
Credit,-Questions-and-Answers.
11 If placed by an authorized agency or court order.
12 Qualifying children who reside with a servicemember who is stationed outside the United States while serving on
extended active duty with the U.S. Armed Forces are considered to reside in the United States for the purposes of the
EITC.
13 See IRC §152(c)(4). Under tiebreaker rules, a child who can be claimed as an EITC qualifying child of more than
one taxpayer is generally treated as the EITC qualifying child of (by order of application): (1) the parents, if they file a
joint return and claim the child as a qualifying child; (2) the parent if only one of the persons is the child’s parent and
the parent claims the child as a qualifying child; (3) the parent with whom the child lived for the longer period of time
(continued...)

Congressional Research Service

3

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

these rules, a taxpayer cannot claim any qualifying children for the EITC, the taxpayer may be
able to claim the credit for those with no qualifying children.14
Age Requirements for EITC Recipients with No Qualifying
Children
If a taxpayer has no qualifying children, he or she must be between 25 and 64 years of age to be
eligible for the EITC. There is no age requirement for taxpayers with qualifying children.
Investment Income
A taxpayer with investment income over a certain dollar amount is ineligible for the EITC. For
2023, the limit on investment income is $11,000.15 Investment income is defined as interest
income (including tax-exempt interest), dividends, net rent, net capital gains, and net passive
income. It also includes royalties that are from sources other than the filer’s ordinary business
activities.
Disallowance of the EITC Due to Fraud or Reckless Disregard
of Rules
A taxpayer is barred from claiming the EITC for a period of 10 years after the IRS makes a final
determination to reduce or disallow a taxpayer’s EITC because that individual made a fraudulent
EITC claim. A taxpayer is barred from claiming the EITC for a period of two years after the IRS
determines that the individual made an EITC claim “due to reckless and intentional disregard of
the rules” of the EITC, but that disregard was not found to be fraud.16

during the tax year if two of the persons are the child’s parent, they do not file a joint return together, and both parents
claim the child; (4) the parent with the highest AGI if the child lived with each parent for the same amount of time
during the tax year, they do not file a joint return together, and both parents claim the child; (5) the person with the
highest AGI if no parent can claim the child as a qualifying child; or (6) the person with the highest AGI if a parent
may claim the child as a qualifying child but no parent claims the child as a qualifying child, but only if that person has
an AGI higher than any parent who may claim the child as a qualifying child. For examples of application of the
tiebreaker rules and answers to common questions, see Internal Revenue Service, Qualifying Child of More Than One
Person, AGI and Tiebreaker Rules, June 23, 2017, https://www.eitc.irs.gov/tax-preparer-toolkit/frequently-asked-
questions/qualifying-child-of-more-than-one-person-agi-and.
14 Currently, there is no federal regulation which states that taxpayers with a qualifying child who do not claim that
qualifying child for the EITC are ineligible for the credit. In the past, information provided on the IRS website stated
that such individuals were ineligible for the childless EITC. However, “the IRS has changed its position in proposed
regulations.” For more information, see Joint Committee on Taxation, Present Law and Background of Individual
Refundable Income Tax Credits and a Description of Modifications to Refundable Credits Included in H.R. 6800, as
Passed by the House of Representatives, June 16, 2020, JCX-17-20, pp. 9-10.
15 In 2020 and 2021, this threshold was $3,650. This amount was permanently increased by ARPA (P.L. 117-2) to
$10,000 in 2021 and annually adjusted for inflation thereafter.
16 See IRC §32(k).
Congressional Research Service

4

link to page 10 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Identification Requirements
To be eligible for the credit, the taxpayer must provide Social Security numbers (SSNs) for work
purposes for themselves, spouses if married filing jointly, and any qualifying children.17 The
SSNs must be issued before the due date of the income tax return.18 (U.S. citizenship is not
required to be eligible for the credit. SSNs do not indicate U.S. citizenship.) Nonresident aliens—
those who do not have green cards or do not spend sufficient time in the United States—are
generally ineligible for the EITC.19
Calculating the EITC
The EITC amount is based on formulas that consider earned income, number of qualifying
children, marital status, and adjusted gross income (AGI). In general, the EITC equals a fixed
percentage (the “credit rate”) of earned income until the credit reaches its maximum amount. The
EITC then remains at its maximum level over a subsequent range of earned income, between the
“earned income amount” and the “phaseout amount threshold.” Finally, the credit gradually
decreases in value to zero at a fixed rate (the “phaseout rate”) for each additional dollar of earned
income or AGI (whichever is greater) above the phaseout amount threshold. The specific values
of these EITC parameters (e.g., credit rate, earned income amount, etc.) vary depending on
several factors, including the number of qualifying children a taxpayer has and their marital
status, as illustrated in Table 1.
Table 1. EITC Parameters by Marital Status
and Number of Qualifying Children, 2023
Number of Qualifying Children
0
1
2
3 or more
unmarried taxpayers (single and head of household filers)
credit rate
7.65%
34%
40%
45%
earned income amount
$7,840
$11,750
$16,510
$16,510
maximum credit amount
$600
$3,995
$6,604
$7,430
phaseout amount threshold
$9,800
$21,560
$21,560
$21,560
phaseout rate
7.65%
15.98%
21.06%
21.06%
income where credit = 0
$17,640
$46,560
$52,918
$56,838
married taxpayers (married filing jointly)
credit rate
7.65%
34%
40%
45%
earned income amount
$7,840
$11,750
$16,510
$16,510

17 For more information on Social Security numbers valid for work purposes, see SSA, Social Security Number for
Noncitizens, at https://www.socialsecurity.gov/pubs/EN-05-10096.pdf; CRS Report R43840, Federal Income Taxes
and Noncitizens: Frequently Asked Questions, by Erika K. Lunder and Margot L. Crandall-Hollick; archived CRS
Report R44290, Legal Authority for Aliens to Claim Refundable Tax Credits: In Brief, by Erika K. Lunder.
18 See IRC §32(m).
19 Nonresident aliens may be eligible to claim the credit if they are married to a U.S. citizen or resident alien, make the
election to be treated as a resident alien, and file a joint return. For more information on the tax treatment of
nonresident aliens, see CRS Report RS21732, Federal Taxation of Aliens Working in the United States, by Erika K.
Lunder (available to congressional clients upon request); CRS Report R43840, Federal Income Taxes and Noncitizens:
Frequently Asked Questions, by Erika K. Lunder and Margot L. Crandall-Hollick.
Congressional Research Service

5

link to page 11 link to page 12

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Number of Qualifying Children
0
1
2
3 or more
maximum credit amount
$600
$3,995
$6,604
$7,430
phaseout amount threshold
$16,370
$28,120
$28,120
$28,120
phaseout rate
7.65%
15.98%
21.06%
21.06%
income where credit = 0
$24,210
$53,120
$59,478
$63,398
Source: IRS Revenue Procedure 2022-38 and Internal Revenue Code §32.
The EITC ranges from a maximum credit of $600 for a taxpayer without a qualifying child to
$7,430 for a taxpayer with three or more qualifying children, as illustrated in Figure 1.
Figure 1. Maximum EITC by Number of Qualifying Children, 2023

Source: Congressional Research Service, based on IRS Revenue Procedure 2022-38 and Internal Revenue Code
(IRC) §32.
The phaseout amount threshold varies by both the number of qualifying children a taxpayer has
and their marital status. The phaseout amount threshold for those who are married filing joint
returns is $6,560 greater than for unmarried taxpayers with the same number of children. For
those without qualifying children, the difference in the phaseout amount threshold among married
versus unmarried taxpayers is $6,570. (Except in certain cases, taxpayers who file as married
filing separately are ineligible for the EITC.) This higher phaseout amount threshold for married
taxpayers reduces (but generally does not eliminate) potential “marriage penalties” in the EITC
whereby the credit for a married couple is less than the combined credit of two unmarried
recipients.
Figure 2 illustrates the EITC amount by earned income level for an unmarried taxpayer with one
child for 2023. It shows the three distinct ranges of EITC for this family:
• Phase-in Range: The EITC increases with earned income from the first dollar of
earned income up to earned income of $11,750. Over this earned income range,
the credit equals the credit rate (34% for a taxpayer with one child) times the
amount of annual earned income. The $11,750 threshold is called the earned
income amount and is the level at which the EITC ceases to increase with earned
income. The income interval up to the earned income amount, where the EITC
increases with earned income, is known as the phase-in range.
Congressional Research Service

6

link to page 12

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

• Plateau: The EITC remains at its maximum level of $3,995 from the earned
income amount ($11,750) until $21,560. The $3,995 credit represents the
maximum credit for a taxpayer with one child in 2023. The income interval with
the EITC fixed at its maximum value represents the plateau on Figure 2.
• Phaseout Range: Once adjusted gross income (or if greater, earned income)
exceeds $21,560, the EITC is reduced for every additional dollar over that
amount. The $21,560 threshold is known as the phaseout amount threshold for a
single taxpayer with one child in 2023. For each dollar over the phaseout amount
threshold, the EITC is reduced by 15.98%. The 15.98% rate is known as the
phaseout rate. The income interval from the phaseout income level until the
EITC is completely phased out is known as the phaseout range.
The EITC is completely phased out (EITC = $0) once the taxpayer’s AGI (or earned income,
whichever is greater) reaches $46,560. The earned income amounts and the phaseout amount
thresholds are adjusted each year for inflation, effectively adjusting the maximum credit amount
annually for inflation.
Figure 2. EITC for an Unmarried Taxpayer with One Child by Income, 2023

Source: Congressional Research Service, based on information in IRS Revenue Procedure 2022-38 and Internal
Revenue Code §32.
Notes: In this simplified example, adjusted gross income (AGI) is assumed to equal earned income.
EITC claimants use tables published by the IRS to calculate their credit amount based on their
income, marital status, and number of qualifying children. The instructions for the federal income
tax form show the EITC amounts in tables by income brackets (in $50 increments).20

20 The tables can be found, for 2022 returns beginning on page 46 of the Form 1040 general instructions, at
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf.
Congressional Research Service

7

link to page 10 link to page 10 link to page 14 link to page 10 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

EITC Eligibility by Poverty Status
While the EITC is available to many families who are in poverty, it is also available for many
families whose income places them above the federal poverty guidelines. As previously
discussed, the EITC declines in value above a certain dollar threshold, referred to as the phaseout
amount threshold. That threshold, combined with the phaseout rate, results in a specific income
level above which a taxpayer is ineligible for the credit (referred to as “income where credit = 0”
in Table 1). This income level, where the credit reaches zero, is sometimes referred to as the
eligibility threshold.
As illustrated in Table 1, there are eight eligibility thresholds for the EITC that depend on a
taxpayer’s number of qualifying children and marital status. The eligibility thresholds vary every
year given that they are based in part on a parameter of the credit—the phaseout amount
threshold—that is adjusted for inflation.
Figure 3 illustrates the 2023 EITC parameters in Table 1 as a percentage of the 2023 federal
poverty guidelines. An EITC claimant’s income must be below these thresholds for the claimant
to qualify for the EITC. For example, the poverty guideline for a family of three in 2023 was
$24,860. Families of three with income at or below this amount are considered poor. The EITC
eligibility threshold of $52,918 for an unmarried person filing with two qualifying children was
more than twice (213%) the poverty guideline for a family of that size.
Congressional Research Service

8

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 3. EITC Parameters as a Percentage of Poverty by Marital Status and
Number of Qualifying Children, 2023

Source: Congressional Research Service, based on IRS Revenue Procedure 2022-38, Internal Revenue Code
(IRC) §32 and the 2023 Poverty Guidelines available at https://aspe.hhs.gov/poverty-guidelines.
Notes: Poverty levels are based on the federal poverty guidelines for the lower 48 states.

Congressional Research Service

9

link to page 16 link to page 16 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

EITC Eligibility by Earned Income at the Federal Minimum Wage
Figure 4 expresses these same eligibility thresholds as a percentage of the earned income of a
worker who works at the federal minimum wage ($7.25 per hour), 40 hours per week, 52 weeks a
year ($15,080 annually). For the purposes of the calculations in Figure 4, married EITC
recipients are assumed to have twice the aggregate annual earned income as unmarried
recipients—$30,160. In other words, both spouses are assumed to work full time.
The EITC is available in 2023 to families with children who have earned income between 1.76 to
3.77 times the annual earnings from a minimum wage job (176% to 377% of $15,080 per
worker). In contrast, if a married couple with no children has income that is more than 80% of the
annual earnings of a household with two full-time workers making the federal minimum wage,
they would be ineligible for the EITC. Of note, the majority of states (30) have minimum wages
that are higher than the federal minimum wage. About 4 out of 10 returns which included the
EITC are filed by residents of the 20 states with a minimum wage of $7.25 an hour.21

21 According to data from the U.S. Labor Department, the 15 states that have state minimum wages that equal the
federal minimum wage of $7.25 an hour are Georgia, Iowa, Idaho, Indiana, Kansas, Kentucky, North Carolina, North
Dakota, New Hampshire, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin, and Wyoming. Five states have no
minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. In these states, employers subject to
the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour. For more information, see
U.S. Department of Labor, State Minimum Wage laws, January 1, 2023, https://www.dol.gov/agencies/whd/minimum-
wage/state. Based on data from the Internal Revenue Service for the 2020 tax year, there were a total of 110.4 million
returns with the EITC filed by residents in these 20 states with $25.2 billion in total EITC claims (about 43% of all
EITC dollars for 2020).
Congressional Research Service

10

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 4. EITC Parameters as a Percentage of Full-Time Employment at the Federal
Minimum Wage by Marital Status and Number of Qualifying Children, 2023

Source: Congressional Research Service, based on IRS Revenue Procedure 2022-38, Internal Revenue Code
(IRC) §32 and the earned income per work earned income of one worker who works at the federal minimum
wage ($7.25 per hour), 40 hours per week, 52 weeks a year ($15,080 annually).
Notes: For the purposes of the calculations, the total household income of married EITC recipients ($30,160) is
assumed to be double the income of unmarried recipients ($15,080).

Congressional Research Service

11

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Payment of the EITC
The EITC is provided to individuals and families annually in a lump-sum payment after a
taxpayer files a federal income tax return.22 Like all tax credits, the EITC can reduce income tax
liability. And because the EITC is a refundable tax credit, if a taxpayer’s EITC is greater than
what they owe in income taxes, they can receive the difference (the portion of the credit that
remains after offsetting any income tax liability) as a tax refund (or an increase in their tax
refund, if they are already receiving a refund).
The amount of the credit that remains after offsetting any income tax liability is often referred to
as the refundable portion of the EITC, whereas the amount that reduces income tax liability is
referred to as the nonrefundable portion of the credit. The refundable portion of the credit can
also offset other tax liabilities collected on the federal income tax return. These other taxes
include self-employment taxes and uncollected Social Security and Medicare taxes (e.g., Social
Security and Medicare taxes on unreported tip income).23 Generally, only refundable credits, like
the EITC, can offset other non-income tax liabilities. The amount of the refundable portion that
remains after offsetting other tax liabilities is sometimes referred to as the “refunded” amount. A
taxpayer who has no income tax liability will receive all of the EITC as the refundable portion of
the credit.
Of the total aggregate amount of the EITC received for 2020—$59.2 billion:
• $0.7 billion offset income tax liability remaining after nonrefundable credits;
• $6.8 billion offset other taxes collected on the income tax return; and
• $51.7 billion exceeded income tax liability.
In other words, for 2020, $58.6 billion of the EITC ($6.8 billion plus $51.7 billion) was received
as the refundable portion of the credit (and hence exceeded income taxes owed after reducing
income tax liability by any nonrefundable tax credits).24
The EITC benefits families when they file their income taxes. Thus, payments are generally based
on the prior year’s income, earned income, and family composition.25 That is, the 2023 EITC,

22 Before 2011, any persons with a qualified child eligible for the EITC could elect to receive advance payment of the
credit through the employer’s payroll withholding system by filing an eligibility certificate (Form W-5) with his or her
employer. The option was little used and eliminated by P.L. 111-226.
23 Other taxes include uncollected Social Security and Medicare taxes due on compensation of an employee that was
treated as an independent contractor by an employer. There are a variety of other taxes collected on the federal income
tax return. Generally, these taxes are more likely to be paid by higher-income taxpayers who would not receive the
EITC. They include additional penalty taxes on individual retirement accounts (IRAs) and other qualified retirement
accounts or other tax-favored accounts, household employment taxes, repayment of the first-time homebuyer credit,
and the 0.9% additional Medicare tax on higher-income taxpayers. Of note, the net investment income tax (NIIT) is
considered an income tax.
24 This sum does not equal the total due to rounding.
25 Congress has sometimes allowed certain taxpayers to elect to use older earned income in computing their EITC (and
the refundable portion of the child tax credit, known as the additional child tax credit or ACTC). In other words, if the
most recent earned income results in a smaller credit than the previous year’s earned income, taxpayers may use that
older earned income to calculate the EITC and ACTC. For a discussion, see “EITC/CTC Credit Computation Look-
Back” in CRS Report R45864, Tax Policy and Disaster Recovery, by Brendan McDermott and Jennifer Teefy. Most
recently, P.L. 116-260 included a provision allowing taxpayers to use 2019 earned income (as opposed to 2020 earned
income) in calculating their 2020 EITC and ACTC.
Congressional Research Service

12

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

based on a taxpayer’s earned income and family composition in 2023, will be paid in 2024.26 If
the taxpayer is owed a refund, and that filer’s return includes an EITC, that refund will be made
on or after February 15.27
Interaction with Other Tax Provisions
On the tax form, the EITC can be found in the payments section after the lines for (1) income tax
liability net of any nonrefundable credits, (2) other non-income tax payments and (3) the lines for
withholding and estimated tax payments. Nonrefundable tax credits, which are taken against
(reduce) income tax liability, include the Lifetime Learning credit,28 the child and dependent care
credit,29 a savings credit,30 and the nonrefundable portions of both the child credit31 and the
American Opportunity tax credit (AOTC).32 If an EITC-eligible family has any income tax
liability and receives one or more of these credits, the total amount of their EITC will remain
unchanged, but the amount they receive as the refundable portion of the credit (i.e., the amount
which exceeds income tax liability) will change. Specifically, if nonrefundable tax credits can
reduce a family’s tax liability, a greater amount of their EITC will be received as the refundable
portion, and less will offset their income tax liability.

26 The Protecting Americans from Tax Hikes (PATH) Act (Division Q of P.L. 114-113) prevents a taxpayer from
claiming the EITC for any year in which the filer did not have a Social Security number (SSN) on or before the due
date of the tax return for that year. This provision prevents a filer who obtains an SSN from retroactively claiming the
EITC for any prior open tax years (generally three years) when the filer did not have an SSN at the time those years’
returns were due.
27 This was effective beginning with returns filed in 2017 (i.e., 2016 income tax returns). §201 of the Protecting
Americans from Tax Hikes (PATH) Act (Division Q of P.L. 114-113).
28 CRS Report R41967, Higher Education Tax Benefits: Brief Overview and Budgetary Effects, by Margot L. Crandall-
Hollick.
29 See CRS Report R44993, Child and Dependent Care Tax Benefits: How They Work and Who Receives Them, by
Margot L. Crandall-Hollick.
30 See CRS In Focus IF11159, The Retirement Savings Contribution Credit, by Molly F. Sherlock..
31 For more information on the nonrefundable (and refundable) portion of the child tax credit, see CRS Report R41873,
The Child Tax Credit: How It Works and Who Receives It, by Margot L. Crandall-Hollick.
32 See CRS Report R42561, The American Opportunity Tax Credit: Overview, Analysis, and Policy Options, by Margot
L. Crandall-Hollick.
Congressional Research Service

13

link to page 37 link to page 12 link to page 12 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

EITC Participation Rates
According to the IRS, 79% of eligible EITC recipients received the credit for 2019 (i.e., on their 2019 income tax
return), with substantial variation by number of qualifying children.33 Older data from the IRS Taxpayer Advocate
indicate that taxpayers with no qualifying children have lower participation rates than those with children.
According to these data, for 2016 an estimated 65% of eligible EITC recipients with no qualifying children claimed
the EITC, compared to an estimated 86% participation for those with one child, 85% participation for those with
two children, and 82% participation for those with three children.34 Participation rate estimates by state can be
found in Table A-4.
Eligible individuals may not claim the EITC for a variety of reasons. The IRS notes that nonparticipants are more
likely to be workers who are “living in rural areas, self-employed, receiving certain disability pensions or have
children with disabilities, without a qualifying child, not proficient in English, grandparents raising their
grandchildren, or recently divorced, unemployed, or experienced other changes to their marital, financial or
parental status.”35 In addition, eligible workers who do not (and are not required to) file a federal income tax
return due to their low incomes, wil not receive the credit.
Data on EITC receipt summarized in this report are from the IRS Statistics of Income (SOI), which generally
provides information on credit receipt (after compliance measures like audits in a given year). Hence, EITC receipt
data include eligible and ineligible recipients. For more information, see CRS Report R43873, The Earned Income
Tax Credit (EITC): Administrative and Compliance Challenges, by Margot L. Crandall-Hol ick.
For taxpayers whose income places them in the “phaseout range” of the credit, reducing their
income (all else being unchanged) will result in a larger EITC. (As illustrated in Figure 2,
reducing income when a taxpayer is in the phaseout range results in the taxpayer increasing the
amount of the credit they receive.) A variety of forms of income can be excluded from both AGI
and earned income, reducing a taxpayer’s AGI or earned income for purposes of calculating the
credit. For example, pretax contributions to savings accounts for retirement or medical expenses
are not included in either AGI or earned income. Hence, by making these contributions, EITC
claimants whose precontribution income places them in the credit’s phaseout range will reduce
their AGI or earned income for purposes of calculating the EITC and thus receive a
larger credit.36
In contrast, for taxpayers whose earned income places them in the credit’s “phase-in range”,
reducing their earned income (all else unchanged) will result in a smaller EITC. (As previously
noted, the credit phases in over a range of earned income, whereas it phases out based on adjusted
gross income or earned income, whichever is greater.) As illustrated in Figure 2, reducing income
when a taxpayer is in the phase-in range results in the taxpayer reducing the amount of the credit
they receive. Generally, income that is not subject to taxation (i.e., it is excluded by law) cannot
be included in earned income for purposes of calculating the EITC. However, as previously
discussed, servicemembers may elect to include their nontaxable combat pay as earned income,
for purposes of calculating the EITC. Generally, servicemembers whose income (excluding their
combat pay) places them in the phase-in range will elect to include their combat pay in earned
income for purposes of calculating the EITC in order to receive a larger credit.

33 Center for Administrative Records Research and Applications, U.S. Census Bureau in collaboration with IRS. Data
can be found at https://www.eitc.irs.gov/eitc-central/participation-rate/eitc-participation-rate-by-states.
34 National Taxpayer Advocate, Earned Income Tax Credit, Special Report to Congress, Volume 3. Figure A.7.
35 Internal Revenue Service, “About EITC: Who are we missing?” June 29, 2020, https://www.eitc.irs.gov/eitc-central/
about-eitc/about-eitc.
36 In contrast, if the precontribution income places them in the plateau or the phase-in range, decreasing their earned
income by making certain pretax savings contributions may either have no impact or result in a smaller credit.
Congressional Research Service

14

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Treatment of the EITC for Need-Tested Benefit Programs
By law, the EITC cannot be counted as income in determining eligibility for, or the amount of,
any federally funded public benefit program, including Supplemental Nutrition Assistance
Program (SNAP) food assistance, low-income housing, Medicaid, Supplemental Security Income
(SSI), and Temporary Assistance for Needy Families (TANF).37 An EITC that is saved by the filer
does not count against the resource limits of any federally funded public benefit program for 12
months after the refund is received.
Data on EITC Receipt
The EITC was first enacted in 1975 as a temporary measure meant to encourage economic
growth in the face of the 1974 recession and rising food and energy prices. It was also originally
intended to “assist in encouraging people to obtain employment, reducing the unemployment rate,
and reducing the welfare rolls.”38 Over time the list of EITC objectives has grown to include
poverty reduction. Today the EITC is the largest need-tested, antipoverty program that provides
cash benefits. This section first provides a historical overview of the growth of the EITC from
1975 to 2020; it then examines information on EITC receipt for 2020.
Trends in EITC Receipt from 1975 to 2020
When originally enacted by the Tax Reduction Act of 1975 (P.L. 94-12), the EITC was a
temporary refundable tax credit in effect for 1975. For that year, 6.2 million taxpayers received
$1.25 billion from the EITC (or $6.0 billion in constant 2020 dollars, which adjusts for inflation).
The credit was extended several more times on a temporary basis and made permanent by the
Revenue Act of 1978 (P.L. 95-600). Legislation enacted in 1986 (P.L. 99-514), 1990 (P.L. 101-
508), 1993 (P.L. 103-66), 2001 (P.L. 107-16), and 2009 (P.L. 111-5) increased the amount of the
credit by changing the credit formula. For more information on the legislative history of the
EITC, see CRS Report R44825, The Earned Income Tax Credit (EITC): Legislative History, by
Margot L. Crandall-Hollick
Before 1990, the credit amount was calculated as a percentage of earned income (“the credit
rate”) up until the earned income amount. The credit then remained at its maximum level before
gradually decreasing in value as earned income increased. Legislative changes to the credit made
during this time generally increased the amount of the credit in a variety of ways, including
increasing the credit rate, increasing the earned income amount, increasing the phaseout amount
threshold, and decreasing the phaseout rate.
Beginning in 1990 and more substantially in 1993, the credit formula was revised such that the
credit amount varied based on earned income and, to a certain extent, the number of qualifying
children. This revision essentially increased the credit by family size. In addition, in 1993,
Congress made workers without qualifying children eligible for the EITC for the first time,
although the credit was smaller than the credit for claimants with qualifying children.

37 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) included a
provision which made tax refunds, including those resulting from the EITC, disregarded in the administration of federal
programs and federally assisted programs. At the end of 2012, this provision was made permanent by the American
Taxpayer Relief Act of 2012 (P.L. 112-240). See IRC §6409.
38 U.S. Congress, Senate Committee on Finance, Tax Reduction Act of 1975, Report to Accompany H.R. 2166, 94th
Cong., 1st sess., March 17, 1975, S.Rept. 94-36, p. 33.
Congressional Research Service

15

link to page 22 link to page 23 link to page 10 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

In 2001, the credit formula was revised again so that it also varied based in part on marital status.
As a result of this change, often referred to as “marriage penalty relief,” certain married taxpayers
would receive a larger credit than unmarried taxpayers with the same number of children. In
2009, the marriage penalty relief was expanded further and a larger credit was created for families
with three or more children. These 2009 changes were extended several times and made
permanent by P.L. 114-113.39
How Did the American Rescue Plan Act (ARPA; P.L. 117-2) Change the EITC in
2021?
In response to the economic fallout from the COVID-19 pandemic, Congress passed several laws that included
temporary provisions designed to provide financial relief to individuals and families, including the American Rescue
Plan Act (ARPA; P.L. 117-2). For 2021, ARPA temporarily expanded the EITC for taxpayers with no credit
qualifying children—sometimes called the “childless EITC.” It expanded the childless EITC by adjusting the formula
and expanding the age range for eligible workers.40 These changes nearly tripled the maximum credit amount in
2021 and made the credit available to 19- to 24-year-olds and those 65 years and older.41 These temporary
changes expired as scheduled at the end of 2021.
Figure 5 shows the number of taxpayers receiving the EITC for 1975 to 2020. Figure 6 shows
the amount of the EITC received, with dollar amounts adjusted for inflation to represent 2020
dollars. The figures show the effects of the legislative expansions of the EITC, with the credit
experiencing growth in the late 1980s through the mid-1990s and then again in the 2000s. (Due to
data limitations, they do not include the impact of the ARPA changes.) Beginning in 2014, the
total credit dollars claimed in real terms started to decline. It is unclear what is causing the
decline. One possible explanation is that income growth among low-wage workers over this time
period has reduced the number of people qualifying for the EITC.42 Another possible explanation
may be that eligible poor taxpayers, concerned that they may be audited, are not claiming the
credit.43

39 At the end of 2017, President Trump signed into law P.L. 115-97, commonly referred to as the Tax Cuts and Jobs
Act or TCJA, which made numerous changes to the federal income tax for individuals and businesses. The final law
did not make any direct changes to the EITC. The law did, however, indirectly affect the credit’s value in future years.
Parameters of the EITC (see Table 1) are indexed to inflation. Prior to P.L. 115-97, this measure of inflation was based
on the consumer price index for urban consumers (CPI-U). P.L. 115-97 changed this inflation measure to be
permanently based on the chained CPI-U (C-CPI-U). In comparison to CPI-U, chained CPI-U tends to grow more
slowly. Hence, over time, the monetary parameters of the EITC will increase more slowly.
40 For more information, see CRS Insight IN11610, The “Childless” EITC: Temporary Expansion for 2021 Under the
American Rescue Plan Act of 2021 (ARPA; P.L. 117-2), by Margot L. Crandall-Hollick.
41 ARPA also made numerous permanent changes to the EITC, which are discussed in more detail in CRS Report
R44825, The Earned Income Tax Credit (EITC): Legislative History, by Margot L. Crandall-Hollick.
42 See CRS Report R45090, Real Wage Trends, 1979 to 2019, by Sarah A. Donovan and David H. Bradley.
43 Jason DeBacker et al., “The Effects of IRS Audits on EITC Claimants,” National Tax Journal, vol. 71, no. 3
(September), pp. 451-484.
Congressional Research Service

16

link to page 31 link to page 23 link to page 23

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 5. Number of Tax Returns with the EITC, 1975-2020

Source: Congressional Research Service. For pre-1996 data, U.S. Congress, House Committee on Ways and
Means, 2004 Green Book, Background Material and Data on Programs Within the Jurisdiction of the Committee on
Ways and Means, 108th Congress, 2nd session, WMCP 108-6, March 2004, pp. 13-41. For 1996 and later data,
Internal Revenue Service, Statistics of Income, SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross
Income, Table 2.5.
Note: For a tabular display of this information, see Table A-1.
As shown in Figure 6, throughout the EITC’s history, a relatively small share of the credit has
reduced regular federal income tax liability. In other words, the majority of credit dollars exceed
income taxes owed after nonrefundable credits have been applied. And over time, the share of the
credit that offsets income tax liability (after nonrefundable credits) has fluctuated, but generally
fallen. This is likely due in part to the enactment and expansion of the child credit, which reduced
many EITC recipients’ income tax liabilities. As income tax liabilities net of nonrefundable
credits have fallen, other tax liabilities offset by the refundable portion of the EITC have
increased. (Only refundable credits can offset other tax liabilities, and hence these amounts are
often considered part of the refundable portion of the EITC, although they are displayed
separately in Figure 6.)
Congressional Research Service

17

link to page 31 link to page 24

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 6. Total EITC Dollars, 1975-2020

Source: Congressional Research Service. For pre-1996 data, Individual Income Tax Return Reports are available
in the IRS SOI Tax Stats Archive-1954 to 1999 Individual Income Tax Return Reports. For 1996 and later data,
see Internal Revenue Service, Statistics of Income, SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross
Income, Table 2.5.
Notes: Constant 2020 dol ars were computed using the Consumer Price Index for all Urban Consumers
(CPI-U). For a tabular display of this information, see Table A-1.
a. The nonrefundable portion of the EITC is the amount of the credit that reduces income tax liability that
remains after applying nonrefundable credits (e.g., the child and dependent credit and the nonrefundable portion
of the child tax credit).
b. The refundable portion of the EITC can offset other tax liabilities that are included on an income tax return,
including self-employment taxes and unpaid Social Security and Medicare payrol taxes. Because nonrefundable
credits cannot offset these taxes, these amounts are often considered part of the refundable portion of the
credit.
c. The refunded amount is the amount of the credit that remains after (a) and (b) described above.
The growth in the total amount of EITC dollars in the late 1980s to the mid-1990s was due to
increases not only in the number of taxpayers eligible for the credit, but also in the average credit
amount. Figure 7 shows the average EITC for 1975 to 2020, in inflation-adjusted (2020) dollars.
Before the 1986 Tax Reform Act (P.L. 99-514), EITC thresholds were not indexed for inflation,
and the average credit lost value each year. However, the 1986 act increased the credit’s monetary
parameters for prior inflation and adjusted the threshold amounts and maximum credits annually
for inflation in future years. The credit formula was also revised in 1990 and then again in 1993
such that the amount of the credit depended to a certain extent on family size. These changes
resulted in an increasing average credit between the late 1980s and late 1990s. Since then, the
average credit has largely maintained its real value. However, increases in the average credit
amount in 2001 and 2009 were likely due to legislative changes that included larger credits for
Congressional Research Service

18

link to page 31 link to page 25

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

some married claimants and for families with three or more children.44 The average EITC for
2020 was $2,276.
Figure 7. Average EITC, 1975-2020

Source: Congressional Research Service. For pre-1996 data, U.S. Congress, House Committee on Ways and
Means, 2004 Green Book, Background Material and Data on Programs Within the Jurisdiction of the Committee on
Ways and Means, 108th Congress, 2nd session, WMCP 108-6, March 2004, p. 41; and Individual Income Tax
Return Reports available at the IRS SOI Tax Stats Archive-1954 to 1999 Individual Income Tax Return Reports.
For 1996 and later data, Internal Revenue Service, Statistics of Income, SOI Tax Stats-Individual Statistical Tables by
Size of Adjusted Gross Income, Table 2.5.
Notes: Constant 2020 dol ars were computed using the Consumer Price Index for all Urban Consumers
(CPI-U). For a tabular display of this information, see Table A-1.
EITC Receipt for 2020
For 2020 (i.e., 2020 income tax returns filed in 2021), 26.0 million taxpayers (16% of all
taxpayers filing an individual income tax return) received a total of $59.2 billion from the EITC.
By Number of Qualifying Children
Most EITC recipients, and those who received the most EITC dollars, were families with
children. Figure 8 shows total EITC dollars for 2020 by number of qualifying children. For 2020,
4% of all EITC dollars were received by taxpayers with no qualifying children and 96% were
received by taxpayers with qualifying children.

44 The increase in the value of the credit in 2009 is likely due to the changes made by the American Recovery and
Reinvestment Act of 2009 (ARRA, P.L. 111-5) which expanded the credit for families with three or more children and
increased marriage penalty relief.
Congressional Research Service

19

link to page 26 link to page 26

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 8. Distribution of Total EITC Dollars by Number of Qualifying Children, 2020

Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross Income, Table 2.5.
Notes: Percentages may not sum to 100% due to rounding. Total EITC for 2020 was $59.2 bil ion.
Though childless taxpayers received 4% of all EITC dollars for 2020, they accounted for more
than a quarter (29%) of all EITC recipients. Thus, their small share of total EITC dollars reflects,
in part, the lower credit amount available to childless filers.
Figure 9 shows the number of returns with the EITC for 2020 by number of qualifying children.
Figure 10 shows the average EITC for 2020 by number of qualifying children. The average EITC
for 2020 increased with the number of qualifying children:
• The EITC was received by 7.6 million taxpayers with no qualifying children,
with an average credit of $295.
• The EITC was received by 9.2 million filers with one qualifying child, with an
average credit of $2,331.
• The EITC was received by 6.0 million filers with two qualifying children, with
an average credit of $3,722.
• The EITC was received by 3.2 million filers with three or more qualifying
children, with an average credit of $4,139.
Congressional Research Service

20

link to page 33 link to page 33

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 9. Number of Tax Returns with the EITC by Number of Qualifying Children,
2020

Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross Income, Table 2.5.
Notes: Detail does not add to total because of rounding. For detail on returns with the EITC by AGI and
number of qualifying children, see Table A-2.
Figure 10. Average EITC by Number of Qualifying Children, 2020

Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross Income, Table 2.5.
Note: For detail on returns with the EITC by AGI and number of qualifying children, see Table A-2.
By Income Level
Though the EITC is targeted toward lower-income earners, taxpayers with children may receive
the EITC even with income well above the poverty level. (The federal poverty level for a family
Congressional Research Service

21

link to page 28 link to page 28 link to page 28 link to page 10 link to page 12 link to page 33 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

of three is $21,720 in 2020.) However, the largest EITC benefits are focused on low-income
earners near the poverty line, with those with greater earned income receiving reduced benefits.
Figure 11 shows the number of tax returns with the EITC for 2020 by adjusted gross income
(AGI) level. Figure 11 shows that the $10,000-$14,999 AGI bracket accounted for the greatest
number of 2020 tax returns that included the EITC—4.6 million. For 2020, about half (43%) of
all returns with the EITC had AGIs below $15,000. For context, a full-time full-year worker
earning the federal minimum wage would have an AGI of $15,080.45
Figure 11 also shows the average EITC per return by AGI category. Average EITC benefits first
increase with AGI, then decline. This outcome reflects the formula for determining the EITC,
which provides an increasing credit up to a maximum amount, then ultimately a reduced credit as
it is phased out above a certain income threshold (see Table 1 and Figure 2). It also reflects a
difference in the mix of family types receiving the EITC in the various AGI categories. For
example, nearly three-quarters (71%) of all EITC recipients with AGIs of less than $5,000 had no
qualifying children. All EITC recipients with AGIs above $25,000 for 2020 had qualifying
children, and hence were eligible for a larger maximum EITC benefit than filers without children.
For detail on returns with the EITC by AGI and number of qualifying children, see Table A-2.

45 40 hours per week for 52 weeks a year at $7.25 per hour.
Congressional Research Service

22

link to page 33

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 11. Number of Tax Returns with the EITC and Average EITC per Return by
Adjusted Gross Income (AGI), 2020

Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross Income, Table 2.5.
Notes: For detail on returns with the EITC by AGI and number of qualifying children, see Table A-2. The AGI
categories are defined such that the lower bound is inclusive but upper bound is not inclusive. Hence AGI “$5K-
$10K” includes taxpayers with AGI $5,000 or more to under $10,000.
By Marital Status
The IRS’s National Taxpayer Advocate (NTA) provided data on EITC receipt by filing status in a
special 2019 report to Congress (the IRS does not routinely provide data on EITC receipt by
filing status in the Statistics of Income annual data releases). According to the NTA report, for
2017, unmarried taxpayers (head of household and single filing statuses) received approximately
three-quarters of all EITC dollars, with over half (59%) received by unmarried taxpayers with one
Congressional Research Service

23

link to page 29 link to page 30

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

or two qualifying children. Figure 12 shows estimates of the distribution of total EITC dollars by
marital status and number of qualifying children for 2017.
Figure 12. Distribution of Total EITC Dollars by Marital Status and Number of
Qualifying Children, 2017

Source: National Taxpayer Advocate, Earned Income Tax Credit, Special Report to Congress, Volume 3. Table
A.5.
By Region
For 2020, 16% of all taxpayers received the EITC. However, the share of taxpayers receiving the
EITC varies considerably by state. For 2020, the state with the highest percentage of returns
receiving the EITC was Mississippi, with 27% of all filers receiving the credit. In contrast, 9% of
all taxpayers in New Hampshire received the EITC for that year.
Figure 13 provides a map showing the percentage of all 2020 federal income tax returns that
included an EITC for each state. In addition to considerable state variation, the map shows that
there is a regional pattern to EITC receipt. A greater share of taxpayers in certain southern states
received the EITC than those in other regions of the country. The EITC was received on the
smallest percentage of returns in New England, as well as some states in the northern Midwest.
Congressional Research Service

24

link to page 35

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Figure 13. Percentage of Tax Returns with the EITC by State, 2020

Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats, Historic Table 2 (Total File, All States), at https://www.irs.gov/statistics/soi-tax-stats-historic-table-
2.
Notes: For details on EITC returns by state, see Table A-3.
Congressional Research Service

25

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Appendix. Additional Tables
Table A-1. EITC Receipt, 1975-2020

In millions of nominal dollars

In millions of 2020 dollars

Total Refundable

Total Refundable

Portion

Portion

Tax

Returns
with
Reduces
Reduces
EITC
Total
Refunded
Other
Average
Total
Refunded
Other
Average
Year (Millions)
EITC
Amount
Taxes
EITC
EITC
Amount
Taxes
EITC
1975
6.215 $1,250
$887
$111
$201
$6,013
$4,266
$534
$968
1976
6.473 $1,295
$935
$119
$200
$5,890
$4,253
$539
$910
1977
5.627 $1,127
$875
$106
$200
$4,811
$3,735
$454
$855
1978
5.192 $1,048
$801
$94
$202
$4,161
$3,180
$374
$801
1979
7.135 $2,052
$1,395
$161
$288
$7,315
$4,974
$574
$1,025
1980
6.954 $1,986
$1,370
$164
$286
$6,238
$4,304
$517
$897
1981
6.717 $1,912
$1,278
$181
$285
$5,443
$3,640
$515
$810
1982
6.395 $1,775
$1,222
$194
$278
$4,761
$3,276
$521
$745
1983
7.368 $1,794
$1,289
$190
$243
$4,661
$3,350
$494
$633
1984
6.376 $1,636
$1,162
$193
$257
$4,074
$2,894
$481
$639
1985
7.432 $2,088
$1,499
$209
$281
$5,021
$3,605
$503
$676
1986
7.156 $2,009
$1,479
$201
$281
$4,745
$3,491
$474
$663
1987
8.738 $3,931
$2,930
$359
$450
$8,955
$6,674
$818
$1,025
1988
11.148 $5,896
$4,257
$537
$529 $12,900
$9,314
$1,174
$1,157
1989
11.696 $6,595
$4,636
$580
$564 $13,766
$9,675
$1,211
$1,177
1990
12.542 $7,542
$5,266
$659
$601 $14,935
$10,428
$1,306
$1,191
1991
13.665 $11,105
$8,183
$840
$813 $21,102
$15,550
$1,596
$1,544
1992
14.097 $13,028
$9,959
$1,010
$924 $24,033
$18,371
$1,864
$1,705
1993
15.117 $15,537
$12,028
$1,208
$1,028 $27,828
$21,543
$2,164
$1,841
1994
19.017 $21,105
$16,598
$1,722
$1,110 $36,857
$28,985
$3,007
$1,938
1995
19.334 $25,956
$20,829
$1,981
$1,342 $44,079
$35,372
$3,364
$2,280
1996
19.464 $28,825
$23,157
$2,105
$1,481 $47,548
$38,199
$3,472
$2,443
1997
19.391 $30,389
$24,396
$2,225
$1,567 $49,002
$39,339
$3,588
$2,527
1998
20.273 $31,592
$27,002
$2,358
$1,558 $50,161
$42,873
$3,744
$2,474
1999
19.259 $31,901
$27,604
$2,379
$1,656 $49,558
$42,883
$3,696
$2,573
2000
19.277 $32,296
$27,804
$2,524
$1,675 $48,540
$41,788
$3,793
$2,518
2001
19.593 $33,376
$29,043
$2,863
$1,703 $48,775
$42,443
$4,184
$2,489
2002
21.574 $38,199
$33,737
$3,347
$1,771 $54,954
$48,535
$4,815
$2,547
Congressional Research Service

26

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

In millions of nominal dollars

In millions of 2020 dollars

Total Refundable

Total Refundable

Portion

Portion

Tax

Returns
with
Reduces
Reduces
EITC
Total
Refunded
Other
Average
Total
Refunded
Other
Average
Year (Millions)
EITC
Amount
Taxes
EITC
EITC
Amount
Taxes
EITC
2003
22.112 $38,657
$34,012
$3,718
$1,748 $54,374
$47,841
$5,230
$2,459
2004
22.270 $40,024
$35,300
$3,957
$1,797 $54,837
$48,364
$5,421
$2,462
2005
22.752 $42,410
$37,465
$4,200
$1,864 $56,202
$49,649
$5,565
$2,470
2006
23.042 $44,388
$39,072
$4,518
$1,926 $56,984
$50,160
$5,800
$2,473
2007
24.584 $48,540
$42,508
$5,098
$1,974 $60,589
$53,060
$6,364
$2,465
2008
24.756 $50,669
$44,260
$5,438
$2,047 $60,908
$53,204
$6,537
$2,460
2009
27.041 $59,239
$53,985
$4,765
$2,191 $71,465
$65,126
$5,748
$2,643
2010
27.368 $59,562
$54,256
$4,855
$2,176 $70,694
$64,397
$5,762
$2,583
2011
27.912 $62,906
$55,350
$6,469
$2,254 $72,379
$63,685
$7,443
$2,593
2012
27.848 $64,129
$56,190
$6,726
$2,303 $72,289
$63,340
$7,582
$2,596
2013
28.822 $68,084
$59,145
$7,645
$2,362 $75,640
$65,708
$8,494
$2,624
2014
28.538 $68,339
$58,889
$8,063
$2,395 $74,712
$64,380
$8,815
$2,618
2015
28.082 $68,525
$58,795
$8,240
$2,440 $74,826
$64,201
$8,998
$2,665
2016
27.385 $66,723
$57,054
$8,266
$2,436 $71,951
$61,524
$8,914
$2,627
2017
27.030 $66,443
$56,751
$8,176
$2,458 $70,154
$59,921
$8,632
$2,595
2018
26.492 $64,924
$56,161
$8,145
$2,451 $66,915
$57,884
$8,395
$2,526
2019
26.738 $64,478
$55,672
$8,155
$2,411 $65,273
$56,359
$8,256
$2,441
2020
26.026 $59,240
$51,739
$6,816
$2,276 $59,240
$51,739
$6,816
$2,276
Source: Congressional Research Service. For pre-1996 data, see U.S. Congress, House Committee on Ways
and Means, 2004 Green Book, Background Material and Data on Programs Within the Jurisdiction of the Committee on
Ways and Means, 108th Cong., 2nd sess., WMCP 108-6, March 2004, p. 41; and Individual Income Tax Return
Reports available at the IRS SOI Tax Stats Archive-1954 to 1999 Individual Income Tax Return Reports. For
1996 and later data, see Internal Revenue Service, Statistics of Income, SOI Tax Stats-Individual Statistical Tables by
Size of Adjusted Gross Income, Table 2.5.
Note: Constant 2020 dol ars were computed using the annual average (not seasonally adjusted) Consumer Price
Index for all Urban Consumers (CPI-U) from the Bureau of Labor Statistics.

Congressional Research Service

27

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Table A-2. Average EITC, Number of Tax Returns with the EITC, and Total EITC
by Qualifying Children and Adjusted Gross Income, 2020
Three or
No
One
Two
More
Qualifying
Qualifying
Qualifying
Qualifying
AGI
Total
Children
Child
Children
Children
Average EITC
Less than $5,000
$857
$223
$1,923
$2,968
$3,050
$5,000 to $9,999
$1,363
$449
$2,712
$3,737
$4,312
$10,000 to $14,999
$2,004
$255
$3,403
$5,083
$5,628
$15,000 to $19,999
$3,723
$147
$3,357
$5,543
$6,342
$20,000 to $24,999
$3,938
$65
$2,969
$5,058
$5,956
$25,000 to $29,999
$3,432
$0
$2,357
$4,347
$5,133
$30,000 to $34,999
$2,612
$0
$1,608
$3,421
$4,286
$35,000 to $39,999
$1,797
$0
$868
$2,462
$3,317
$40,000 to $44,999
$1,375
$0
$466
$1,515
$2,454
$45,000 and higher
$800
$0
$0
$678
$1,065
All
$2,276
$295
$2,331
$3,722
$4,139
Tax Returns with the EITC
Less than $5,000
2,995,003
2,125,630
479,332
247,603
142,438
$5,000 to $9,999
3,491,536
2,331,093
694,609
312,877
152,959
$10,000 to $14,999
4,605,282
2,528,901
1,249,472
586,523
240,388
$15,000 to $19,999
2,969,373
567,744
1,213,817
796,323
391,490
$20,000 to $24,999
2,573,195
83,346
1,332,897
801,877
355,074
$25,000 to $29,999
2,587,027
0
1,345,767
844,368
396,892
$30,000 to $34,999
2,385,991
0
1,256,232
729,381
400,377
$35,000 to $39,999
2,095,093
0
1,070,501
659,566
365,025
$40,000 to $44,999
1,323,368
0
448,204
571,977
303,187
$45,000 and higher
999,841
0
106,935
444,488
448,418
Total
26,025,709
7,636,714
9,197,766
5,994,983
3,196,248
Total EITC ($ in Thousands)
Less than $5,000
$2,565,514
$474,603
$921,740
$734,774
$434,396
$5,000 to $9,999
$4,760,272
$1,047,569
$1,884,070
$1,169,083
$659,549
$10,000 to $14,999
$9,230,114
$644,266
$4,251,524
$2,981,497
$1,352,826
$15,000 to $19,999
$11,054,759
$83,186
$4,075,177
$4,413,688
$2,482,707
$20,000 to $24,999
$10,133,674
$5,443
$3,957,297
$4,055,946
$2,114,988
$25,000 to $29,999
$8,879,654
$0
$3,171,788
$3,670,463
$2,037,403
$30,000 to $34,999
$6,231,557
$0
$2,020,138
$2,495,554
$1,715,865
$35,000 to $39,999
$3,764,221
$0
$929,317
$1,623,978
$1,210,927
Congressional Research Service

28

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Three or
No
One
Two
More
Qualifying
Qualifying
Qualifying
Qualifying
AGI
Total
Children
Child
Children
Children
$40,000 to $44,999
$1,819,594
$0
$208,808
$866,747
$744,039
$45,000 and higher
$800,327
$0
$21,337
$301,261
$477,731
Total
$59,239,686
$2,255,067
$21,441,196
$22,312,991
$13,230,431
Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats-Individual Statistical Tables by Size of Adjusted Gross Income, Table 2.5.

Congressional Research Service

29

link to page 36 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Table A-3. EITC Receipt by State, 2020
Percentage
Tax
of Total
Returns
Tax
Total
Percentage
Total Tax
with
Returns
EITC
Average
of Credit
State or Area
Returns
EITC
with EITC
(millions)
EITC
Refundeda
United States
164,041,940 25,553,580
16%
$58,190
$2,277
88%
Alabama
2,246,870
475,900
21%
$1,246
$2,618
90%
Alaska
359,870
45,300
13%
$91
$2,010
91%
Arizona
3,450,640
565,090
16%
$1,341
$2,372
89%
Arkansas
1,351,370
288,910
21%
$732
$2,534
90%
California
19,556,780
2,782,630
14%
$5,740
$2,063
86%
Colorado
2,934,530
332,200
11%
$678
$2,040
86%
Connecticut
1,858,430
212,650
11%
$436
$2,050
88%
Delaware
510,060
73,840
14%
$165
$2,239
91%
District of Columbia
353,430
47,270
13%
$101
$2,131
89%
Florida
11,232,230
2,221,280
20%
$5,099
$2,295
84%
Georgia
5,069,700
1,073,310
21%
$2,705
$2,521
87%
Hawaii
707,510
90,860
13%
$181
$1,994
90%
Idaho
868,550
126,450
15%
$276
$2,184
88%
Il inois
6,297,580
904,880
14%
$2,081
$2,300
88%
Indiana
3,337,840
518,830
16%
$1,188
$2,289
91%
Iowa
1,550,180
193,130
12%
$422
$2,183
90%
Kansas
1,404,880
199,160
14%
$449
$2,255
90%
Kentucky
2,076,680
384,590
19%
$895
$2,326
90%
Louisiana
2,082,460
496,170
24%
$1,320
$2,660
90%
Maine
714,510
89,950
13%
$175
$1,946
87%
Maryland
3,135,300
401,570
13%
$860
$2,141
87%
Massachusetts
3,646,160
356,180
10%
$676
$1,898
89%
Michigan
5,031,270
714,200
14%
$1,601
$2,242
89%
Minnesota
2,890,450
308,970
11%
$631
$2,043
89%
Mississippi
1,328,290
353,980
27%
$949
$2,681
90%
Missouri
3,009,120
492,500
16%
$1,134
$2,303
90%
Montana
551,690
73,590
13%
$149
$2,026
88%
Nebraska
948,280
124,640
13%
$280
$2,249
90%
Nevada
1,598,330
265,230
17%
$585
$2,206
89%
New Hampshire
744,780
67,550
9%
$123
$1,820
88%
New Jersey
4,701,870
580,100
12%
$1,241
$2,139
87%
New Mexico
995,280
196,600
20%
$454
$2,311
91%
New York
10,159,910
1,529,850
15%
$3,256
$2,128
88%
Congressional Research Service

30

link to page 36 link to page 33 link to page 33 link to page 35 link to page 35 The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Percentage
Tax
of Total
Returns
Tax
Total
Percentage
Total Tax
with
Returns
EITC
Average
of Credit
State or Area
Returns
EITC
with EITC
(millions)
EITC
Refundeda
North Carolina
5,077,390
917,200
18%
$2,134
$2,326
88%
North Dakota
373,520
42,320
11%
$89
$2,111
91%
Ohio
5,897,590
884,200
15%
$2,029
$2,295
90%
Oklahoma
1,780,050
341,060
19%
$826
$2,423
89%
Oregon
2,084,220
256,720
12%
$504
$1,964
89%
Pennsylvania
6,546,960
841,160
13%
$1,759
$2,091
91%
Rhode Island
576,050
74,860
13%
$153
$2,049
90%
South Carolina
2,519,240
485,360
19%
$1,159
$2,388
89%
South Dakota
443,220
58,700
13%
$126
$2,152
91%
Tennessee
3,349,310
616,380
18%
$1,467
$2,380
87%
Texas
13,788,840
2,694,970
20%
$6,939
$2,575
86%
Utah
1,495,630
183,610
12%
$397
$2,161
88%
Vermont
344,800
38,870
11%
$71
$1,826
87%
Virginia
4,245,600
591,230
14%
$1,303
$2,204
88%
Washington
3,847,130
391,300
10%
$786
$2,009
89%
West Virginia
816,790
140,020
17%
$315
$2,249
92%
Wisconsin
2,998,950
357,520
12%
$766
$2,141
91%
Wyoming
286,780
36,170
13%
$76
$2,094
90%
Other Areas
865,070
14,580
2%
$31
$2,134
96%
Source: Congressional Research Service, based on data from the Internal Revenue Service, Statistics of Income,
SOI Tax Stats, Historic Table 2 (Total File, All States), at https://www.irs.gov/statistics/soi-tax-stats-historic-table-
2.
Note: Totals in this table differ slightly from totals shown in Table A-2. Although the figures in Table A-2 and
Table A-3 are both based on data from the IRS, the data in Table A-3 include “substitutes for returns” in which
the IRS constructs tax returns for certain nonfilers. “Other Areas” includes, for example, returns filed from
Army Post Office and Fleet Post Office addresses by members of the Armed Forces stationed overseas; returns
filed by other U.S. citizens abroad; and returns filed by residents of Puerto Rico with income from sources
outside Puerto Rico or with income earned as U.S. government employees.
a. The refunded amount is the part of the refundable portion of the credit that remains after the credit has
offset other taxes like self-employment taxes and unpaid Social Security and Medicare payrol taxes
col ected on the federal income tax return (i.e., Form 1040).

Congressional Research Service

31

Table A-4. EITC Participation Rates by State, 2009-2019
Participation Rate
State
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Alabama
79.1%
78.6%
78.5%
79.8%
82.0%
82.1%
81.9%
82.1%
81.0%
79.9%
82.1%
Alaska
70.0%
70.0%
73.3%
71.9%
72.8%
76.7%
78.5%
75.6%
81.2%
76.2%
71.0%
Arizona
80.1%
76.4%
76.5%
76.7%
76.5%
77.4%
77.0%
76.6%
75.7%
74.5%
76.9%
Arkansas
81.2%
78.1%
79.5%
80.0%
80.0%
80.6%
81.6%
81.6%
80.8%
80.9%
81.7%
California
74.5%
73.4%
73.0%
73.8%
74.7%
75.8%
75.4%
74.3%
73.1%
71.0%
78.6%
Colorado
76.1%
73.5%
73.3%
74.5%
73.8%
74.5%
73.9%
73.5%
74.9%
71.6%
75.5%
Connecticut
82.1%
77.9%
78.2%
78.6%
79.2%
78.6%
78.9%
81.3%
77.7%
77.1%
79.6%
Delaware
81.4%
80.4%
78.5%
74.0%
78.5%
79.4%
82.3%
82.0%
83.6%
77.9%
79.8%
District of Columbia
75.4%
75.5%
77.3%
71.0%
82.0%
71.9%
72.2%
75.2%
76.1%
74.0%
75.0%
Florida
82.4%
81.4%
81.3%
81.7%
82.0%
82.1%
83.4%
82.8%
82.6%
81.0%
81.0%
Georgia
79.1%
77.3%
78.0%
79.9%
80.9%
81.2%
80.8%
80.8%
79.1%
79.0%
81.2%
Hawaii
83.6%
77.8%
77.8%
81.7%
80.9%
82.5%
84.9%
80.2%
79.9%
81.1%
81.8%
Idaho
81.5%
79.0%
78.5%
78.5%
78.5%
81.2%
80.1%
83.2%
78.3%
83.2%
80.1%
Il inois
77.6%
78.4%
78.2%
78.5%
78.3%
79.0%
79.2%
78.5%
77.5%
77.7%
81.5%
Indiana
80.6%
80.3%
79.8%
79.5%
81.8%
80.5%
82.8%
80.7%
80.7%
81.0%
83.0%
Iowa
81.1%
75.5%
76.9%
79.3%
78.7%
79.2%
79.6%
79.1%
78.7%
79.3%
80.8%
Kansas
78.3%
78.0%
76.0%
74.9%
77.3%
77.1%
79.8%
78.3%
79.2%
78.2%
78.0%
Kentucky
82.1%
79.9%
80.1%
81.5%
82.0%
80.5%
81.1%
82.7%
81.9%
79.6%
81.4%
Louisiana
80.9%
78.2%
77.7%
80.4%
79.2%
80.2%
80.5%
81.7%
81.4%
80.0%
80.4%
Maine
81.6%
81.7%
75.4%
77.9%
79.5%
81.0%
77.9%
81.5%
80.4%
79.3%
81.4%
Maryland
76.0%
75.6%
74.1%
78.3%
78.8%
77.6%
78.7%
78.3%
79.4%
76.4%
80.0%
Massachusetts
80.2%
78.3%
78.1%
79.4%
80.8%
80.0%
79.8%
79.7%
78.1%
77.0%
78.0%
CRS-32

Participation Rate
State
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Michigan
80.5%
80.5%
80.4%
80.4%
80.9%
80.9%
82.0%
81.6%
81.9%
80.4%
81.0%
Minnesota
81.5%
78.4%
78.3%
78.9%
78.9%
78.7%
80.6%
79.7%
79.4%
78.0%
79.3%
Mississippi
82.6%
79.6%
80.5%
82.4%
84.8%
84.1%
84.7%
84.5%
84.3%
85.2%
83.1%
Missouri
78.9%
78.2%
78.5%
78.4%
80.7%
80.3%
80.0%
80.9%
81.0%
79.9%
80.2%
Montana
81.6%
77.7%
77.1%
78.7%
77.4%
76.0%
76.5%
78.4%
80.3%
77.3%
74.6%
Nebraska
81.4%
80.7%
77.6%
82.4%
76.9%
79.9%
78.1%
80.2%
77.6%
79.0%
83.3%
Nevada
76.4%
74.7%
74.8%
74.6%
75.3%
76.3%
75.4%
73.7%
73.6%
71.5%
76.9%
New Hampshire
78.5%
81.8%
74.3%
74.6%
80.6%
78.4%
79.9%
79.3%
81.5%
77.4%
80.3%
New Jersey
79.8%
78.1%
76.9%
77.5%
78.8%
78.6%
77.2%
79.1%
77.8%
75.7%
79.7%
New Mexico
80.1%
78.5%
78.7%
78.2%
75.3%
80.8%
82.1%
81.1%
81.8%
75.7%
81.4%
New York
81.4%
82.5%
81.4%
81.7%
82.5%
82.4%
82.9%
82.8%
82.5%
79.7%
82.6%
North Carolina
79.3%
77.7%
76.7%
79.9%
80.2%
80.0%
81.0%
81.0%
77.2%
76.9%
79.9%
North Dakota
77.2%
82.5%
77.3%
78.2%
82.9%
83.0%
80.4%
76.1%
82.4%
82.3%
80.4%
Ohio
81.0%
79.9%
80.1%
81.3%
82.3%
82.6%
82.0%
81.6%
82.5%
81.4%
82.0%
Oklahoma
77.9%
76.1%
75.4%
74.2%
76.7%
76.1%
77.5%
78.1%
78.4%
75.8%
78.2%
Oregon
79.6%
73.2%
73.1%
73.4%
75.5%
72.5%
74.4%
73.4%
72.6%
71.0%
74.7%
Pennsylvania
81.8%
80.3%
81.8%
80.9%
82.4%
82.0%
82.6%
82.2%
81.7%
81.9%
81.7%
Rhode Island
84.0%
79.2%
82.3%
85.8%
84.3%
82.8%
81.3%
81.2%
84.9%
81.0%
83.1%
South Carolina
77.7%
80.2%
77.4%
78.4%
79.6%
80.9%
81.9%
84.5%
82.0%
80.3%
81.1%
South Dakota
82.2%
82.7%
81.5%
82.8%
77.2%
82.5%
84.6%
81.1%
83.0%
84.2%
77.8%
Tennessee
79.2%
80.4%
80.4%
81.4%
81.8%
80.9%
83.2%
83.0%
82.0%
80.1%
81.2%
Texas
79.6%
78.1%
77.8%
77.8%
78.5%
79.1%
79.5%
79.1%
78.3%
76.8%
80.9%
Utah
77.1%
75.3%
75.4%
75.0%
74.9%
75.2%
76.3%
77.3%
75.3%
75.0%
78.2%
CRS-33

Participation Rate
State
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Vermont
82.9%
78.2%
83.3%
84.0%
80.3%
80.7%
81.9%
80.6%
79.0%
82.9%
82.6%
Virginia
78.9%
78.3%
78.8%
78.7%
79.5%
80.5%
81.1%
80.7%
79.8%
79.0%
79.5%
Washington
74.4%
73.8%
74.4%
74.8%
75.3%
76.9%
78.0%
76.8%
76.4%
73.1%
76.5%
West Virginia
81.6%
81.8%
80.4%
80.9%
82.2%
83.2%
82.6%
81.1%
83.4%
83.1%
80.0%
Wisconsin
80.1%
78.0%
77.8%
79.6%
79.1%
80.0%
78.8%
78.4%
79.9%
78.3%
81.7%
Wyoming
75.1%
74.9%
77.8%
74.6%
76.9%
79.8%
78.1%
78.6%
77.7%
76.3%
73.6%
Source: IRS-ACS Match, Center for Administrative Records Research and Applications, U.S. Census Bureau in col aboration with IRS. Data can be found at
https://www.eitc.irs.gov/eitc-central/participation-rate/eitc-participation-rate-by-states.
Notes: The IRS data used in these estimates are based on the year of the tax return. In other words, 2019 data reflect tax data from 2019 income tax returns, generally
filed in 2020. The national EITC participation rate is estimated using the Census Bureau’s Current Population Survey (CPS) and hence not directly comparable to these
state estimates, which are based on the American Community Survey (ACS).

CRS-34

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Author Information

Margot L. Crandall-Hollick
Conor F. Boyle
Specialist in Public Finance
Analyst in Social Policy

Gene Falk

Specialist in Social Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

Congressional Research Service
R43805 · VERSION 17 · UPDATED
35

Download PDF

Download EPUB

Revision History

Nov. 14, 2023

HTML · PDF

16% changed

Jan. 12, 2021

HTML · PDF

<1% changed

Oct. 5, 2020

HTML · PDF

2% changed