Families With Kids Could Get up to $8,231 From the IRS Next Year, Here's How

If you have kids and a job, there's a good chance the IRS owes you more money next year. The Earned Income Tax Credit (EITC) is getting a boost in 2026, as the maximum credit will climb to $8,231 for households with three or more children.

The EITC can add thousands to your refund, even if your income is on the lower side or your tax bill is small.

What's changing in 2026

The EITC is one of the most valuable federal benefits for working families. It's designed to help low- and moderate-income earners offset their tax burden and, in many cases, receive a refund. The exact amount depends on your income, filing status, and number of children.

For 2026, the new maximum EITC amounts are:

• $8,231 for families with three or more children (up from $8,046 in 2025)
• $7,316 for families with two children
• $4,427 for families with one child
• $664 for taxpayers with no children

The IRS has also updated the phase-out thresholds:

• Married couples filing jointly will phase out completely at $70,224 in adjusted gross income if they have three or more children, and at lower levels for families with fewer children.
• For single, head of household, or widowed filers, the EITC phases out at $62,974 for those with three or more kids.
• To qualify, taxpayers must have less than $12,200 in investment income for 2026.

Who qualifies and how to claim it

To receive the EITC, you must have earned income from a job or self-employment and meet the income thresholds for your filing status. If the credit exceeds your tax bill, the remainder comes back to you as a refund, which is why it's considered one of the most powerful refundable credits available.

Families can use the IRS EITC Assistant to check eligibility before filing. Many filers miss out simply because they don't realize they qualify.

Make your refund work harder

If you're expecting a bigger refund next year, think about where that money will do the most good. Check out the best high-yield savings accounts available right now. Many are still paying over 4.00% APY, so your refund could start earning interest the moment it lands.

Or if you'd rather focus on long-term goals, you could open or contribute to an IRA to boost your family's retirement savings while reducing your taxable income next year. See some of the best accounts and get your IRA opened today.

Why it matters

The EITC's 2026 adjustment comes as part of a broader IRS inflation update that also increased the Child Tax Credit ($2,200 per child) and the adoption credit ($17,670). Combined, these changes mean families could see noticeably larger refunds and lower effective tax rates next filing season.

A few minutes of planning now -- checking eligibility, updating your W-4, and deciding how to use your refund -- could be worth thousands when 2026 returns roll around.