A little extra room in the budget would be welcome news for plenty of Houstonians—and a federal tax credit could put a substantial sum back in eligible residents’ pockets.
The Earned Income Tax Credit, or EITC, offers qualifying workers and families up to $8,046 for tax year 2025, the return generally filed in 2026. The amount you could receive depends on your income, filing status and number of qualifying children.
Before you start planning how to spend it, there’s one important detail: this isn’t a new stimulus check or a Texas-only payout. It’s a federal tax benefit you claim through your tax return, and direct deposit is simply one way to receive any resulting refund.
What is the Earned Income Tax Credit?
Think of the EITC as a tax break designed to give low- and moderate-income workers a financial boost. It can lower the federal income tax you owe and potentially increase your refund. Because the credit is refundable, you could receive money back even if you don’t owe federal income tax.
The catch? You still need to file a federal tax return to claim it—even if you wouldn’t normally be required to file.
How much could you receive?
The biggest credit goes to eligible households with three or more qualifying children, but you don’t need a large family—or children at all—to potentially qualify.
Here are the maximum amounts for tax year 2025, per qualifying children:
- None: $649
- One: $4,328
- Two: $7,152
- Three or more: $8,046
These are maximums, not a flat payment for everyone who qualifies. Your actual credit depends on your household’s circumstances, and falling below the income limit doesn’t automatically unlock the highest amount.
If you’ve spotted a $7,830 figure in similar headlines, that number refers to tax year 2024. The $8,046 maximum applies to tax year 2025—an important distinction when checking what you might be owed.
Who qualifies for the credit?
To qualify, you’ll need to meet the IRS’s federal eligibility rules, which include:
- Earned income from work or self-employment.
- Earned income and adjusted gross income below the limits for your filing status and number of qualifying children.
- Investment income of no more than $11,950 for tax year 2025.
- A valid Social Security number by the return’s due date, including extensions.
- Generally, US citizenship or resident-alien status throughout the tax year.
- Not filing Form 2555, which relates to foreign earned income.
Special rules also apply to some taxpayers, including people who are separated from their spouse and aren’t filing jointly.
Can you claim it if you don’t have children?
Yes—this isn’t exclusively a benefit for parents.
Eligible workers without qualifying children can receive up to $649 for tax year 2025. Generally, they must be at least 25 but under 65 at the end of the tax year, alongside meeting other requirements. For married couples filing jointly, at least one spouse must meet that age requirement.
If you’re claiming with children, the IRS has specific tests covering relationship, age, residency and joint-return status. Generally, a qualifying child must have lived with you in the United States for more than half the tax year. Simply listing someone as a dependent doesn’t necessarily mean they qualify for this credit.
How do you claim it—and when could the money arrive?
You claim the EITC by filing a federal income tax return. A useful starting point is the IRS’s EITC Assistant, which walks you through questions to help determine whether you qualify.
If your return results in a refund, you can request direct deposit. But there’s no single deposit date for everyone claiming the credit, and filing doesn’t mean the money will land immediately. Returns claiming the EITC are subject to special IRS refund-timing rules.
And if you think you missed out in a previous year, it may be worth checking: the IRS generally allows three years from a return’s due date to file and claim a refund, subject to the applicable rules.
