About the Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal tax credit that supplements the wages of low and moderate income workers. Because it is fully refundable, it can pay out even when you owe no income tax: if the credit is larger than your tax bill, the difference comes back as a refund. For tax year 2026 the maximum credit is $664 with no qualifying children, $4,427 with one child, $7,316 with two, and $8,231 with three or more (IRS Revenue Procedure 2025-32).
This calculator estimates your credit from three inputs: your earned income, the number of qualifying children, and your filing status. It applies the official 2026 phase-in rate, plateau, and phase-out range for your situation. The result is an estimate to help you plan; your actual credit depends on adjusted gross income, investment income, and the detailed qualifying-child tests on your return.
Earned income means wages, salary, tips, and net self-employment income. It excludes interest, dividends, pensions, Social Security, and unemployment. You also cannot claim the EITC if your investment income exceeds the 2026 limit of $12,200, and every person on the return needs a valid Social Security number. Workers without children must be between 25 and 64 to qualify.
How it works: the three-stage formula
The EITC rises, plateaus, then falls as income grows. This trapezoid shape rewards work on the way up and tapers support as earnings climb.
Phase-in: credit = earned income x phase-in rate (until the maximum) Plateau: credit = maximum credit (flat band) Phase-out: credit = maximum - (income - phaseout start) x phaseout rate End: credit = 0 (above the completed-phaseout income) 2026 phase-in rates: 7.65% (0 kids), 34% (1), 40% (2), 45% (3+)
- Phase-in grows the credit by the statutory rate for each extra dollar earned, until it hits the cap.
- Plateau holds the credit at its maximum across a band of income.
- Phase-out shrinks the credit once income passes the threshold, reaching zero at the completed-phaseout amount (which is higher for married couples filing jointly).
- In the phase-out band the calculation uses the greater of earned income or adjusted gross income; this tool uses your earned income as the estimate.
Worked example
Take a single filer with two qualifying children and $35,000 of earned income in 2026 (the calculator's defaults).
- Maximum credit: for 2 children the 2026 cap is $7,316, reached once earned income passes $18,290.
- Phase-out start: for a single filer, the credit begins to shrink above $23,890.
- Phase-out rate: $7,316 spread over the band from $23,890 to $58,629 is about 21.06 percent per dollar.
- Reduction: ($35,000 - $23,890) x 0.2106 = $11,110 x 0.2106 = about $2,340.
- Estimated credit: $7,316 - $2,340 = about $4,976.
2026 EITC reference table
Maximum credit and single-filer income limits for tax year 2026. Married-filing-jointly limits are about $7,270 higher at each stage.
| Qualifying children | Max credit | Phase-out starts (single) | Income limit (single) |
|---|---|---|---|
| None | $664 | $10,860 | $19,540 |
| 1 | $4,427 | $23,890 | $51,593 |
| 2 | $7,316 | $23,890 | $58,629 |
| 3 or more | $8,231 | $23,890 | $62,974 |
Source: IRS Revenue Procedure 2025-32. Investment income limit for 2026: $12,200. Last updated 2026-05-28.
Common pitfalls
- Counting unearned income. Only wages, tips, and self-employment count toward the EITC. Interest, dividends, pensions, and unemployment do not, and too much investment income (over $12,200 in 2026) disqualifies you entirely.
- Forgetting it is refundable. Many eligible workers skip the credit because they owe no tax. The EITC pays out as a refund even with zero tax liability, so you should file to claim it.
- Misjudging the qualifying-child tests. A qualifying child must meet relationship, age, residency, and joint-return rules. A child who lived with you under half the year generally does not count.
- Ignoring state credits. More than 30 states and DC add their own EITC, usually a percentage of the federal amount, which this federal estimate does not include.
- Using earned income only. In the phase-out band the IRS uses the higher of earned income or AGI. If your AGI exceeds your earned income, your real credit may be lower than this estimate.
Frequently asked questions
Who is eligible for the EITC in 2026?
You need earned income from work or self-employment, a valid Social Security number for everyone on the return, and investment income of $12,200 or less for 2026. You cannot file as married filing separately. Workers without qualifying children must be between 25 and 64 years old; those with qualifying children have no age limit.
What is the maximum EITC for 2026?
For tax year 2026 the maximum credit is $664 with no qualifying children, $4,427 with one child, $7,316 with two children, and $8,231 with three or more children, per IRS Revenue Procedure 2025-32. You receive the maximum only within the plateau income band; below it the credit phases in, and above it the credit phases out toward zero.
At what income does the EITC phase out in 2026?
For single and head-of-household filers the phase-out begins at $10,860 with no children and $23,890 with children, and the credit reaches zero at $19,540 (no children), $51,593 (one child), $58,629 (two children), or $62,974 (three or more). Married couples filing jointly get higher limits, roughly $7,270 more at each stage.
Can I claim the EITC without children?
Yes, but the credit is much smaller. The 2026 maximum for workers with no qualifying children is $664, and you must be between 25 and 64 years old, not be claimed as a dependent, and have lived in the United States for more than half the year. The credit phases out completely at $19,540 for single filers.
Is the EITC refundable, and does my state add to it?
The federal EITC is fully refundable, so you get the full credit as a refund even if you owe no income tax. More than 30 states plus the District of Columbia offer their own EITC on top of the federal credit, usually set as a percentage of it, ranging from a few percent to about half. This tool estimates only the federal credit.