The tax code contains several tax credits designed to support workers and children. Among the largest is the Earned Income Tax Credit (EITC), which delivers upwards of $60 billion per year to low-income households nationwide. $59,187 This brief provides an overview of the EITC, examining benefits by number of children and income levels.

Data summary

• In 2022, 24.1 million tax returns claimed the EITC, and benefits totaled $60.1 billion.
• Average EITC benefits are typically equivalent to 12% to 13% of average annual pre-tax earnings of recipients.
• Average EITC benefits are typically equivalent to 12% to 13% of average annual pre-tax earnings of recipients.
• In 2022, 65% of EITC benefits went to taxpayers earning under $25,000 per year, with the tax credit increasing their pre-tax annual incomes by over 20%.