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The Internal Revenue Service recently boosted the earned income tax credit for 2026, potentially increasing refunds for low-income families. The IRS adjusts tax brackets and filing requirements based on inflation, and for tax year 2026, the IRS has adjusted requirements that will increase the maximum Earned Income Tax Credit. The bump could help boost tax refunds for qualifying low- and moderate-income families. Read more: New income tax brackets announced: 2026 standard deduction increases, rates Families with three or more children may receive up to $8,231 when filing their taxes in 2027, according to the new federal income tax brackets released by the IRS. The maximum credit for families with two children will increase to $7,316, up from $7,152 in 2025. Those with one child can receive up to $4,427, an increase from $4,328, while qualifying adults without children can get up to $664, compared to $649 the previous year. The EITC is fully refundable, meaning it can increase a tax refund even if the filer owes no federal income tax. Read more: IRS makes historic change to how it handles tax returns: What’s next To be eligible, taxpayers must have an adjusted gross income below certain thresholds. For married couples filing jointly, the credit phases out completely at $70,224 for those with three or more children, $65,899 for two children, $58,863 for one child, and $26,820 for those without children. Single, head of household or widowed filers face lower thresholds: $62,974 with three or more children, $58,629 with two children, $51,593 with one child, and $19,450 with no children. Additionally, taxpayers cannot have more than $12,200 in investment income for the 2026 tax year to qualify for the credit. More Business News Travel-themed Boston cocktail bar pouring out last drink on Halloween Amazon rival closing 100+ more stores, downsizing after 40 years With SNAP set to run out, state rebates at farms, farmers markets still available Mass. ranks No. 1 best state for jobs, WalletHub report says MGM sells Ohio casino, tells Wall St. it’s happy with its regional sites like Springfield
