What is the Earned Income Tax Credit?

The EITC is a refundable federal tax credit designed to supplement wages for low- to moderate-income working individuals and families. The credit amount depends on earned income, filing status, and number of qualifying children. It is fully refundable, so eligible filers receive it as a tax reduction plus a refund check for any remainder.

Can I claim the EITC with no children?

Yes, but the credit is much smaller — a maximum of $632 for TY 2024 vs. up to $7,830 with three qualifying children. The childless version also requires the filer to be age 25 to 64 (with some exceptions for former foster youth and homeless youth).

Is the EITC refundable?

Yes, the EITC is fully refundable. If the calculated credit exceeds your tax liability, the IRS pays the difference as a refund. This is what makes the EITC unusually valuable compared to non-refundable credits, which only reduce tax owed.

What income counts as "earned income"?

Wages, salaries, tips, self-employment net earnings, and certain disability benefits received before minimum retirement age count as earned income. Investment income, Social Security, pensions, unemployment, child support, and alimony do not count. Self-employment income is calculated net of business expenses.

When can I expect my EITC refund?

By law (the PATH Act of 2015), the IRS cannot issue EITC-related refunds before mid-February each year, even for early filers. Most EITC refunds are deposited in late February to early March. Filing electronically with direct deposit is the fastest path; paper returns add weeks.

Earned Income Credit Calculator

Calculate your potential Earned Income Tax Credit. The EITC is a refundable federal tax credit for low to moderate income workers. Enter your earned income, filing status, and number of qualifying children to see your estimated credit.

The Earned Income Tax Credit (EITC) is one of the largest federal anti-poverty programs in the United States, paying out roughly $60 billion per year to working low- and moderate-income families. Unlike most tax benefits, it is fully refundable — if the credit exceeds your tax bill, the IRS sends the difference as a refund. For a working parent with three children, the maximum EITC for tax year 2024 was $7,830; for 2025, it rises slightly with inflation adjustments.

The credit has a distinctive bell-curve structure: it phases in as earned income rises (essentially a wage subsidy), plateaus across a middle range, then phases out as income grows beyond a threshold. The exact phase-in rate, plateau width, and phase-out endpoint depend on filing status and number of qualifying children. The more children you have (up to three), the larger the maximum credit and the higher the income at which it phases out completely.

This calculator estimates your EITC using the tax-year 2024 parameters (the most recently completed year as of filing season 2025). The Internal Revenue Service publishes updated thresholds each year — the structure is stable, but the dollar figures move with inflation. Treat the output as a planning estimate, and always confirm against IRS Publication 596 or a qualified preparer when filing.

Inputs

Earned Income

Filing Status

Qualifying Children

Results

Estimated EITC

$2,616

Maximum Credit

$3,995

Phase-Out Starts

$21,370

Phase-Out Ends

$46,370

EITC by Income Level

Last updated: May 25, 2026Reviewed by the CalcMountain editorial team

Formula

EITC structure (tax year 2024 reference values): Phase-in: Credit = Earned Income × phase_in_rate (Credit grows linearly with each dollar earned) Plateau: Credit = max_credit (Credit holds at maximum across a defined income range) Phase-out: Credit = max_credit − (Income − phase_out_start) × phase_out_rate Key parameters by number of qualifying children (TY 2024): 0 children: max credit $632, phase-in rate 7.65%, phase-out at $10,330 (single) / $17,250 (joint), full phase-out by $18,591 / $25,511 1 child: max credit $4,213, phase-in rate 34%, phase-out at $22,720 / $29,640, full phase-out by $49,084 / $56,004 2 children: max credit $6,960, phase-in rate 40%, phase-out at $22,720 / $29,640, full phase-out by $55,768 / $62,688 3+ children: max credit $7,830, phase-in rate 45%, phase-out at $22,720 / $29,640, full phase-out by $59,899 / $66,819 Investment income limit: must be ≤ $11,600 (TY 2024). Earned income must be from wages, self-employment, or certain disability benefits. Example: Single filer, 1 child, earned income $20,000 In the plateau range. Credit ≈ $4,213. Same filer earning $35,000: $35,000 > phase-out start of $22,720 Reduction = ($35,000 − $22,720) × 15.98% phase-out rate ≈ $1,961 Credit ≈ $4,213 − $1,961 = $2,252

How to use this calculator

Enter your earned income — wages, salaries, tips, and net self-employment income. Do not include investment income, Social Security, unemployment, or alimony.
Choose your filing status. Married filing jointly has a higher phase-out start by about $7,000, which can preserve thousands in credit at the same household income vs. single/HoH.
Enter the number of qualifying children. Each child must meet the IRS's relationship, age (under 19, or under 24 if a student, or any age if permanently disabled), residency (lived with you more than half the year), and joint-return tests.
Review the estimated credit. The result is the amount you would receive — as a tax reduction first, with the remainder as a refund check (the EITC is fully refundable).
If your income is in the phase-out range, try a slightly lower number to see the marginal effect. The phase-out rate is steep — every $1,000 of additional income removes $160–$211 of credit, depending on family size.
Pre-tax contributions (401(k), HSA, traditional IRA) reduce your AGI but not your earned income for EITC purposes — they may not preserve EITC the way they preserve Child Tax Credit.
Pair the result with the child-tax-credit and income-tax-estimator calculators for a full picture of federal refund or balance due.

Worked examples

Single parent, one child, plateau range

Filing status: Single (head of household). Earned income: $20,000. One qualifying child. Income is in the plateau range (above $11,750 phase-in completion, below $22,720 phase-out start). EITC: $4,213 (the maximum for one child in TY 2024). If federal tax owed before the credit is $200, the credit zeroes out the tax and the remaining $4,013 is refunded.

Married couple, three kids, mid-phase-out

Filing status: Married filing jointly. Earned income: $50,000. Three qualifying children. Phase-out starts at $29,640 (joint). Reduction = ($50,000 − $29,640) × 21.06% ≈ $4,288 EITC = $7,830 − $4,288 = $3,542 A meaningful refund check, but $4,288 less than the maximum. Note: a $5,000 income reduction (e.g., higher 401(k) contribution would not help here since EITC uses earned income, not AGI) would have restored about $1,053 of credit.

Childless worker — small but real credit

Filing status: Single. Earned income: $14,000. No qualifying children. Phase-in completes at $8,260 (single, no kids). Plateau extends to $10,330. At $14,000, in the phase-out. Reduction = ($14,000 − $10,330) × 7.65% ≈ $281 EITC = $632 − $281 = $351 The childless EITC is much smaller than the family version but still real money for low-wage workers. Must be at least age 25 and under 65 to claim the no-children version (with some exceptions).

When to use this calculator

Use this calculator any time you are estimating taxes or planning withholding for a low- to moderate-income household, especially one with children. The EITC is the largest source of refunds for many filers and is frequently misunderstood, missed, or under-claimed — the IRS estimates roughly 1 in 5 eligible workers does not claim it each year, leaving billions on the table.

It is particularly important when planning around the phase-out cliff. A worker hovering near the phase-out range can see hundreds of dollars of EITC vanish from accepting a small bonus or extra hours. Pair this calculator with planning conversations about whether to defer income, accelerate retirement contributions (limited help, since EITC uses earned income not AGI), or shift earnings between spouses on a joint return.

Free preparation help is available for EITC-eligible filers through IRS-sponsored Volunteer Income Tax Assistance (VITA) sites. The IRS Free File program also supports EITC filing free for households under specific income thresholds. Many states (CA, NY, MA, CO, MN, others) have their own state-level EITC that piggybacks on the federal calculation — often 10–45% of the federal credit, claimed on the state return.

Pair this calculator with the child-tax-credit and income-tax-estimator calculators for a full picture of the family's federal tax outcome.

Common mistakes to avoid

Not claiming the EITC because tax owed is zero. The EITC is fully refundable — you can receive the credit as a refund even with no tax liability. Filing a return is the only way to claim it.
Skipping the credit due to "earned income too low." There is a minimum earned income (the credit starts at $1 of earned income), and many part-time, seasonal, and gig workers qualify even with very modest earnings.
Using AGI instead of earned income for the calculation. EITC uses earned income (wages, self-employment) for phase-in and AGI separately for phase-out. The numbers are usually close but not identical, especially for filers with significant investment or retirement income.
Forgetting the investment income limit. If your investment income exceeds $11,600 (TY 2024), you cannot claim the EITC at all — even if everything else qualifies. This often surprises retirees with part-time work and pension/dividend income.
Claiming a child who doesn't meet the residency or relationship tests. The child must have lived with you in the U.S. for more than half the tax year. Split-custody arrangements require careful application of IRS tie-breaker rules.
Filing married-separately (MFS). The EITC is unavailable on MFS returns under most circumstances. Married couples almost always come out ahead filing jointly when EITC is in play.

Frequently Asked Questions

Sources & further reading

Earned Income Tax Credit (EITC) — official IRS overview — U.S. Internal Revenue Service
Publication 596 — Earned Income Credit — U.S. Internal Revenue Service
Volunteer Income Tax Assistance (VITA) — free filing help — U.S. Internal Revenue Service

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