Earned Income Tax Credit Calculator

What Is an Earned Income Tax Credit Calculator?

An earned income tax credit calculator is a free online tool that helps you estimate whether you may qualify for the federal Earned Income Tax Credit (EITC) and what your potential credit amount might be. By entering your earned income, adjusted gross income (AGI), investment income, filing status, and number of qualifying children, you can get a quick estimate of your potential EITC.

The Earned Income Tax Credit is a refundable federal tax credit for eligible working individuals and families with moderate to low income. This earned income tax credit calculator provides a simplified estimate based on current federal tax rules and the selected tax year.

The calculator shows not only the estimated credit amount but also your potential eligibility status and where you fall in the credit progression (phase-in, maximum, or phase-out).

What Is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a refundable federal tax credit designed to encourage and reward work for individuals and families with moderate to low income. Key features of the EITC include:

• Refundable credit — If the credit exceeds your tax liability, you may receive the difference as a refund.
• Income-based — The credit generally increases with earned income, reaches a maximum, and then phases out as income increases.
• Family size — The credit generally increases with the number of qualifying children.
• Filing status — Some filing statuses may not qualify.

The EITC can be a significant benefit for eligible taxpayers, but eligibility and amounts can change by tax year. This calculator uses the applicable values for the selected tax year.

How Does the Earned Income Tax Credit Work?

The EITC calculation generally follows a three-stage progression:

• Phase-In — As earned income increases, the credit increases until it reaches its maximum amount for the number of qualifying children.
• Maximum Credit — Once the credit reaches its maximum, it stays at that level until income enters the phase-out range.
• Phase-Out — As income continues to increase beyond the phase-out threshold, the credit gradually decreases until it reaches zero.

The calculator uses the applicable IRS tables for the selected tax year to determine where your income falls in this progression and what your estimated credit might be.

How Does Earned Income Affect the EITC?

Earned income is the foundation of the EITC calculation. Earned income includes:

• Wages and salary — Employment income from a job.
• Tips — Tips received as part of employment.
• Self-employment income — Income from self-employment (subject to certain adjustments).
• Other earned income — Certain other types of income that qualify as earned income.

The EITC generally increases as earned income increases until the maximum credit is reached. Higher earned income can move you toward the maximum credit, but exceeding the phase-out threshold can reduce or eliminate the credit.

How Does AGI Affect the EITC?

Adjusted Gross Income (AGI) and earned income both play a role in the EITC calculation. The calculator uses the higher of the two for determining where you fall in the phase-out range. This means that:

• If AGI is higher than earned income — The phase-out uses the AGI amount.
• If earned income is higher than AGI — The phase-out uses the earned income amount.
• Other income sources — Other income sources that affect AGI can impact the credit.

This is why the calculator asks for both earned income and AGI — to provide a more accurate estimate.

How Do Qualifying Children Affect the EITC?

The number of qualifying children can significantly affect your EITC amount. General considerations include:

• Relationship — The child must be related to you (son, daughter, stepchild, etc.).
• Age — The child must meet age requirements (under 19, under 24 if a student, or any age if permanently disabled).
• Residency — The child must have lived with you for more than half of the tax year.
• Joint return — The child generally cannot file a joint return.
• Identification — The child must have a valid Social Security number.

This calculator uses the number of qualifying children you enter and does not independently verify every qualifying-child requirement.

Does Investment Income Affect the EITC?

Yes. The EITC has an investment income limit that can change by tax year. For 2026, the investment income limit is 11,600. If your investment income exceeds this limit, you generally cannot claim the EITC.

Investment income includes:

• Interest — Taxable interest income.
• Dividends — Taxable dividends.
• Capital gains — Gains from selling investments.
• Other investment income — Certain other types of investment income.

This calculator checks your investment income against the applicable limit and warns you if you exceed it.

EITC Example

Factors That Can Affect Your EITC

Several factors can influence your EITC eligibility and amount:

• Tax year — EITC amounts and limits can change annually.
• Earned income — The amount of earned income determines where you fall in the credit progression.
• AGI — AGI affects the phase-out calculation.
• Filing status — Some statuses may not qualify.
• Number of qualifying children — More children generally mean a higher credit.
• Investment income — Exceeding the limit can make you ineligible.
• Age — Age restrictions apply in some cases.
• Residency — Children must generally live with you.
• Identification — Valid Social Security numbers are required.

EITC vs. Tax Refund

It's important to understand the difference between a tax credit and a tax refund:

• EITC (Tax Credit) — A refundable credit that can reduce your tax liability dollar-for-dollar. If the credit exceeds your tax liability, you may receive the difference as a refund.
• Tax Refund — The amount of money you receive back from the government when your tax payments and credits exceed your tax liability.

The EITC can increase your refund, but the EITC itself is not the same thing as a refund. It's a credit that can contribute to a refund if you are eligible.

Documents and Information to Gather Before Estimating EITC

Before using this calculator, gather the following information:

• W-2 forms — For wages and salary.
• 1099 forms — For self-employment and other income.
• Income records — Records of all income sources.
• Tax return information — Previous returns for reference.
• AGI — Your adjusted gross income estimate.
• Investment income records — Interest, dividends, and capital gains.
• Dependent information — Names, ages, and Social Security numbers of qualifying children.
• Filing status — Your anticipated filing status.

Common EITC Calculation Mistakes

• Using the wrong tax year — EITC amounts and limits change annually.
• Ignoring investment income — Exceeding the investment income limit can make you ineligible.
• Using the wrong filing status — Some filing statuses may not qualify.
• Assuming every child qualifies — Children must meet specific requirements.
• Confusing earned income with total income — Only earned income counts for the EITC.
• Assuming EITC equals the final refund — The EITC is a credit, not a refund itself.
• Ignoring income phase-out — The credit phases out at higher incomes.
• Using outdated EITC amounts — Use current tax-year tables.

What This EITC Calculator Does Not Determine

• Qualifying-child status — The calculator does not verify relationship, age, residency, or identification.
• Residency — The calculator does not verify residency requirements.
• Social Security number requirements — The calculator does not verify SSN validity.
• Citizenship/residency requirements — The calculator does not verify immigration status.
• Married-filing rules in every situation — Special rules may apply.
• Special IRS eligibility rules — Additional rules may apply.
• Complete tax-return calculations — This is a focused estimate.
• State earned income credits — State credits are not included.
• Audit or IRS eligibility determinations — Only the IRS can determine official eligibility.