Once you’ve passed all the other requirements to claim the Earned Income Tax Credit, including understanding what counts as earned income, all that’s left is to understand the income limits. The limitations increase each year, and are dependent on the number of qualifying children and your filing status.

For 2015 the Earned Income Tax Credit limits are:

Single Filers

• $14,820 with no children
• $39,131 with one qualifying child
• $44,454 with two qualifying children
• $47,747 with three or more qualifying children

Married Filing Jointly

• $20,330 with no children
• $44,651 with one qualifying child
• $49,974 with two qualifying children
• $53,267 with three or more qualifying children

Investment Income

Investment income must be $3,400 or less for the year in order to qualify for the EITC.

Earned income is defined as wages, salaries, tips, and other taxable pay from being an employee, as well as self-employment earnings. Nontaxed employee pay, such as certain benefits, are not included in earned income.

Your earned income will be reported on a Form W-2 if you are an employee. Self-employed taxpayers and clergymen who file a Schedule SE will calculate earned income using Worksheet B (Part 4) of the Form 1040, or by using Worksheet 5 on the Form 1040EZ or 1040A.

Scholarships and fellowship grants not reported on a W-2 do not count towards earned income. Neither do monies earned for work completed as an inmate in a penal system. Pensions and annuities from nonqualified deferred compensation plans also do not count toward earned income. Government benefits, such as Medicaid waivers, are exempt from earned income as well.

Members of the military can opt to include nontaxable combat pay as part of their earned income. Joint filers who both have nontaxable combat pay can make their own choice whether or not to include the pay. That means if your spouse includes their pay, you are not automatically required to do so yourself.