Happy 50th birthday to the Earned Income Tax Credit (EITC)! The credit became effective in 1975 when President Ford signed it into law (as part of the Tax Reduction Act) to provide financial assistance to working families. Then, the maximum EITC amount was $400. In 2024, eligible taxpayers can claim a credit of up to $7,830 if they have three or more qualifying children. Eligibility depends on adjusted gross income, investment income, filing status and the number of qualifying children. Over the years, legislation has changed and enhanced the EITC. Today, low- and moderate-income taxpayers and families with and without children may qualify.
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