Federal EITC for the 2025 Tax Year

The federal earned income tax credit for 2025 ranges from $632 for workers with no qualifying children to $7,830 for families with three or more kids. These amounts adjust each year for inflation, and the 2025 thresholds shifted upward slightly from 2024.

Income limits depend on filing status and how many children you claim. A married couple filing jointly with two children, for example, can earn up to roughly $59,899 and still receive a partial credit. Single filers with no children max out at about $18,591 in earned income.

Two details people consistently miss: investment income must stay below $11,600, and you need a valid Social Security number for yourself, your spouse (if filing jointly), and every child you’re claiming. ITINs don’t qualify for the federal credit, per IRC Section 32.

New York State EITC: 30% of Your Federal Credit

The NYS earned income credit is set at 30% of whatever your federal EITC works out to. No separate application, no additional income test. If the IRS says your federal credit is $6,604, New York State adds $1,981 on top.

This is a refundable credit, meaning you get the full amount even if you owe zero state tax. It shows up on your NY State return (Form IT-215) and goes directly toward your refund. For a single parent with two kids earning $45,000 in New York, the federal plus state EITC together can exceed $8,500.

NYC Gets You Even More

New York City residents also qualify for the NYC EITC, which adds up to 5% of the federal credit amount. That’s a smaller percentage than the state credit, but it’s still free money left on the table if you don’t claim it.

On a federal credit of $6,604, the NYC piece comes to about $330. Stack all three together and you’re looking at $6,604 + $1,981 + $330 = $8,915 in combined credits. For a family earning $40,000 to $50,000 in the city, that’s more than two months of median rent in Queens.

You claim the NYC credit on Form IT-215 alongside the state credit. There’s no separate city form.

Who Qualifies — and Who Gets Tripped Up

The basic rules: you need earned income (wages, salary, tips, or net self-employment income), a valid SSN, and you must be a U.S. citizen or resident alien for the full year. If you’re filing as married filing separately, you’re generally locked out of the EITC under IRC Section 32(d).

Common disqualifiers for New York filers specifically:

• Living in NYC part-year — the city credit is prorated based on months of residency
• Claiming a child who also appears on another person’s return — only one filer can claim a given qualifying child
• Self-employment income that’s not reported on Schedule SE — the IRS flags unreported SE income and can deny the credit entirely
• Exceeding the investment income threshold, which catches some New Yorkers with rental properties or stock gains they didn’t expect to matter

How to File for All Three Credits

Claim the federal EITC on your Form 1040 using Schedule EIC (if you have qualifying children). The credit amount flows from the EIC worksheet in the 1040 instructions. Software handles this automatically, but if you’re filing by hand, double-check the income lookup table — it’s easy to read the wrong column.

For the state and city credits, file Form IT-215 with your New York State return. The form pulls your federal EITC amount, multiplies by 30% for NYS and up to 5% for NYC, and adds both to your refund. If you’re using a tax professional or a CPA firm like The Reed Corporation, they’ll handle all three automatically — but it’s worth understanding the math so you can spot errors.

One thing to watch: if your federal return gets audited and your EITC changes, you’ll need to amend your New York return too. The state and city credits are tied directly to the federal number.

Timing and Refund Expectations

The IRS is required by law (under the PATH Act) to hold refunds that include the EITC until mid-February, regardless of when you file. This means filing on January 27 (the 2025 season opening date) won’t speed things up much — expect your federal refund around early March if you file electronically with direct deposit.

New York State refunds typically follow a few weeks behind the federal. The combined wait for all three credits landing in your bank account is usually four to six weeks from the date you e-file.