How much is the Earned Income Tax Credit for 2026?

For 2026, the maximum EITC is $664 with no qualifying children, $4,427 with 1 child, $7,316 with 2 children, and $8,231 with 3 or more children. The credit is fully refundable, meaning you receive it even if you owe no federal income tax.

What are the 2026 EITC income limits?

For 2026, the EITC phases out completely at approximately $19,734 (single, no children), $52,272 (single, 1 child), $59,317 (single, 2 children), $63,695 (single, 3+ children). Married filing jointly thresholds are about $7,000 higher per category.

Can self-employed workers claim the EITC?

Yes. Net self-employment income from Schedule C qualifies as earned income for the EITC. Your earned income for EITC purposes equals your net Schedule C profit minus half of your self-employment tax. You must have positive net profit to qualify.

What is the investment income limit for EITC in 2026?

For 2026, your investment income (interest, dividends, capital gains, rental income) must be $12,200 or less to qualify for the EITC. Exceeding this limit disqualifies you entirely — there is no partial credit.

Is the EITC refundable?

Yes, the EITC is fully refundable. If your credit exceeds your federal income tax liability, the IRS sends you the difference as a refund. This means even workers who owe $0 in federal income tax can receive the full EITC amount.

EITC Calculator 2026 — Earned Income Tax Credit Estimator

Your EITC details

Qualifying children

Max credit: $7,316

Filing status

Earned income

Wages, salaries, tips, or net self-employment income

Adjusted Gross Income (AGI)

EITC uses the lower of earned income or AGI

Investment income

Your age in 2026

Your 2026 EITC

Your Earned Income Tax Credit

$7,082

Fully refundable — received even with $0 tax liability

Credit phase

Phase-inPlateauPhase-out

Credit reduces by 21.1% per dollar above $23,890

Maximum credit	$7,316
Phase-in ends at	$18,290
Phase-out begins at	$23,890
Income limit	$59,317
Your EITC	$7,082

2026 EITC maximum credits

0 kids

$664

1 kid

$4,427

2 kids

$7,316

3+ kids

$8,231

Key EITC rules (2026)

•Fully refundable — receive the full credit even with $0 tax liability
•Investment income limit: $$12,200 (cliff — over and you are disqualified)
•Childless workers must be ages 25-64
•Cannot file as Married Filing Separately (with limited exceptions)
•EITC refunds held until mid-February under PATH Act

What is How to Use the EITC Calculator?

The Earned Income Tax Credit (EITC), established under IRC § 32, is a refundable federal tax credit for low- to moderate-income working individuals and families. For tax year 2026, the maximum credit ranges from $664 for workers with no qualifying children to $8,231 for those with three or more qualifying children, as set by IRS Revenue Procedure 2025-32. The credit operates through three phases: a phase-in range where each dollar of earned income increases the credit at rates from 7.65% (0 children) to 45% (3+ children); a plateau range where the credit remains at its maximum; and a phase-out range where the credit gradually reduces to zero as income exceeds certain thresholds. Because the EITC is fully refundable under IRC § 32(a)(2), you receive the full credit amount even if your federal income tax liability is zero — it functions as a wage supplement for low-income workers. The credit is subject to strict eligibility requirements including earned income, investment income limits ($12,200 for 2026), and for childless workers, an age requirement of 25–64.

How to Use

Enter your number of qualifying children (0-3+). Children must meet relationship, age, and residency tests under IRC § 32(c)(3).
Enter your earned income — wages, salaries, tips, or net self-employment income from Schedule C.
Enter your AGI (Adjusted Gross Income). The EITC uses the lower of earned income or AGI per IRC § 32(a)(2).
Enter your investment income — must be $12,200 or less to qualify under IRC § 32(i).
Select your filing status — MFJ filers get higher phase-out thresholds. MFS filers are generally ineligible.
Enter your age — childless workers must be 25-64 under IRC § 32(c)(1)(A)(ii).

Why Use This Tool?

Fully refundable — receive the full credit even with $0 tax liability

Up to $8,231 for families with 3+ qualifying children (2026)

Self-employment income qualifies for EITC

Reduces poverty for millions of working families annually

Can be claimed alongside Child Tax Credit for combined savings

Tips & Best Practices

The EITC uses the lower of your earned income or AGI — contributing to a traditional IRA can lower your AGI and increase your credit.
Self-employed? Your earned income = net Schedule C profit minus half of self-employment tax.
Investment income over $12,200 disqualifies you entirely — watch out for big capital gains or mutual fund distributions.
About 20% of eligible taxpayers fail to claim the EITC each year — make sure you file even if you owe no tax.
EITC refunds are held until mid-February under the PATH Act (IRC § 6428B) anti-fraud rule.

Frequently Asked Questions

Can I claim EITC if I am self-employed?

Yes. Net self-employment income from Schedule C qualifies as earned income. Your earned income for EITC equals your net profit minus half of your self-employment tax. You must have positive net profit to qualify.

What counts as investment income for EITC?

Investment income includes interest, dividends, capital gains, rental income, and royalties. For 2026, this must be $12,200 or less. Exceeding this limit disqualifies you entirely — there is no partial credit.

What is a qualifying child for EITC?

A qualifying child must meet three tests under IRC § 32(c)(3): (1) Relationship — your son, daughter, stepchild, foster child, sibling, or descendant. (2) Age — under 19, under 24 if a full-time student, or any age if permanently disabled. (3) Residency — lived with you in the US for more than half the year.

What if my earned income and AGI are different?

The EITC uses the lower of your earned income or AGI to calculate the credit. If you contributed to a traditional IRA or have above-the-line deductions, your AGI may be lower than your earned income, which could result in a larger credit.

What does this calculator not cover?

This calculator does not cover state EITC programs (over 30 states offer their own credits), the Additional Child Tax Credit (ACTC) calculation, ITIN filer eligibility, tiebreaker rules when multiple people claim the same child, or the effect of combat pay elections. It also does not account for prior-year EITC claims, amended returns, or special rules for members of the military and clergy. Consult a qualified tax professional for complex situations.

Real-world Examples

Single parent with 2 children, $25,000 earned income

A single mother with 2 qualifying children earns $25,000 in wages with $0 investment income. She files as Head of Household.

Married couple with 1 child, $40,000 combined income

A married couple filing jointly with 1 qualifying child earns $40,000 combined. Their investment income is $500.

Tax Disclaimer

This EITC calculator provides estimates for educational purposes only and is not tax advice. EITC rules are complex and subject to change. Eligibility depends on specific facts including qualifying child tests, filing status, and income types. The 2026 parameters are based on IRS Revenue Procedure 2025-32 and may be adjusted. Consult a qualified tax professional or use IRS Free File to determine your actual EITC eligibility and credit amount.

How this is calculated

The Earned Income Tax Credit is calculated using a three-phase formula defined in IRC § 32, with parameters adjusted annually by the IRS:

Phase-in range: Credit = Earned Income × Phase-in Rate. Each additional dollar of income increases the credit. Rates range from 7.65% (0 children) to 45% (3+ children).
Plateau range: Credit = Maximum Credit Amount. The credit stays at its peak between the phase-in end and phase-out start incomes.
Phase-out range: Credit = Maximum Credit − (Income − Phase-out Start) × Phase-out Rate. The credit gradually reduces to zero as income rises.
The credit uses the lower of earned income or AGI as the income input.
Investment income exceeding $12,200 (2026) disqualifies the taxpayer entirely under IRC § 32(i).
Childless workers must be ages 25–64 under IRC § 32(c)(1)(A)(ii).

Sources

2026 parameters per IRS Rev. Proc. 2025-32 · Last updated June 2026

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