If you earn less than $50,000, you may qualify for a number of IRS tax credits targeting low- and middle-income households, most notably the earned income tax credit and the child tax credit.
Additional credits for education or dependent care may also be available. Some of these tax credits are even refundable, meaning they can generate a refund if they exceed your tax liability.
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Earned Income Tax Credit
The earned income tax credit provides (EITC) benefits to qualifying households based on income level and number of children or qualifying relatives, according to the IRS. Here are the maximum qualifying adjusted gross income (AGI) levels for tax year 2025, shared by the IRS.
| Children (or qualifying relatives) | Married filing jointly | Other filing statuses |
| Zero | $26,214 | $19,104 |
| One | $57,554 | $50,434 |
| Two | $64,430 | $57,310 |
| Three | $68,675 | $61,555 |
Maximum credit amounts for tax year 2025:
- Zero qualifying children: $649
- One qualifying child: $4,328
- Two qualifying children: $7,152
- Three or more qualifying children: $8,046
The EITC is fully refundable, per the IRS.
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Child Tax Credit
Qualifying lower-income households with children may claim the child tax credit (CTC), which is worth up to $2,200 per child in 2025, per the IRS. While the CTC itself is nonrefundable, if you qualify for the additional child tax credit, up to $1,700 of the CTC may be refundable.
The CTC is much easier to qualify for, with phaseouts beginning at $200,000 in AGI. For this reason, most households earning less than $50,000 with children can qualify.
Child and Dependent Care Credit
If you pay for child care so that you can work, you may be able to use the child and dependent care credit to offset part of that cost, according to the IRS. Expenses of up to $3,000 for one person or $6,000 for two or more people are allowed for purposes of calculating the credit, which amounts to 20% to 35% of qualifying care costs. The percentage allowed is based on income, so lower-income households generally qualify for the higher percentage.
Education Credits
The American opportunity tax credit (AOTC) and lifetime learning credit (LLC) help defray the costs of higher education. According to the IRS, the AOTC, of which up to 40% is refundable, allows a credit of up to $2,500 per qualifying student. The LLC is nonrefundable and capped at $2,000 per tax return, per the IRS.
For each tax credit, the modified adjusted gross income (MAGI) must be less than $90,000, or $180,000 for joint filers. While they are not limited solely to those earning less than $50,000, lower-income households are more likely to earn the full amount of each credit.
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This article originally appeared on GOBankingRates.com: If You Make Under $50K, You May Qualify for These IRS Tax Credits
