Earned Income Tax Credit Calculator

How the Earned Income Tax Credit phase-in, plateau, and phase-out work

The Earned Income Tax Credit (EITC) is a refundable tax credit under 26 U.S.C. § 32 for people who work. It rises with work pay (phase-in), stays flat across a middle band (plateau), and drops above a threshold (phase-out) until it hits $0. Under IRC § 32(b)(1), the credit builds at 7.65%, 34%, 40%, 45% for 0, 1, 2, and 3+ children. It phases out at 7.65%, 15.98%, 21.06%, 21.06%.

For 2026 (Rev. Proc. 2025-32, § 4.06), the top credit is $664 with 0 children, $4,427 with 1, $7,316 with 2, and $8,231 with 3 or more. You reach that plateau once work pay hits $8,680 (0 children), $13,020 (1 child), or $18,290 (2 or 3+ children). The 2027 amounts are in Rev. Proc. 2026-35 section 3.06.

Under 26 U.S.C. § 32(a)(2)(B), phase-out uses the larger of your AGI or work pay. For 2026 single, head of household, surviving spouse, and separated filers, phase-out starts above $10,860 (0 children) or $23,890 (1+ children). It ends at $19,540, $51,593, $58,629, and $62,974. On a 2026 joint return, phase-out starts above $18,140 or $31,160. It ends at $26,820, $58,863, $65,899, and $70,244.

On Form 1040, you look up your credit in the IRS Publication 596 EIC Table instead of using raw percentages. The table groups pay into $50 bands and rounds the midpoint (+$25) to the nearest dollar. On the plateau, it prints the exact top credit. In Publication 596's example, $2,455 of single 1-child pay sits in the $2,450–$2,500 band (midpoint $2,475). That row gives $842, while 34% of $2,455 is $834.70.

IRC §32 and Form 1040 EIC Worksheet formulas

credit before phase-out = min(credit % × earned income, maximum credit)
phase-out income        = max(AGI, earned income)
reduction               = phase-out % × max(0, phase-out income − phase-out start)
credit                  = max(0, min(credit before phase-out, maximum credit − reduction))
table credit ($50 band) = round_half_up(formula evaluated at [low, low + 50) midpoint)
credit % (0/1/2/3+ children)    = 7.65% / 34% / 40% / 45%
phase-out % (0/1/2/3+ children) = 7.65% / 15.98% / 21.06% / 21.06%

Worked examples from 2026 Rev. Proc. 2025-32 and 2025 IRS Publication 596

Take a single filer in 2026 with 1 child and $30,000 of work pay and AGI. Because pay is on the 1-child plateau, the credit before phase-out is the full $4,427. Income sits $6,110 over the $23,890 threshold, so the cut is 15.98% × $6,110 = $976.38. That leaves a $3,450.62 credit ($3,447 in the IRS $50-band table). A married couple filing jointly with 1 child at $30,000 stays on the joint plateau and keeps the full $4,427.

With 0 children in 2026, a single filer at $15,000 starts from the $664 top credit. Their income is $4,140 above the $10,860 childless threshold, so 7.65% × $4,140 cuts the credit by $316.71. That leaves $347.29 by formula ($345 in the IRS table).

In IRS Publication 596 (Chapter 6, Example 2), Cameron and Jordan Grey file a 2025 joint return with 2 children. They have $33,030 in wages, $525 in interest, and $33,555 in AGI. In the 2025 EIC Table, $33,030 ($33,000–$33,050 band) gives $6,614 on Worksheet line 2. Their $33,555 AGI ($33,550–$33,600 band) gives $6,498 on line 5. Taking the smaller figure on line 6 gives their $6,498 credit ($6,502.30 by the IRC § 32(a) formula). Likewise, the 2025 EIC Table row for $25,000 to $25,050 ($25,025 midpoint) shows $4,060 for a single parent with 1 child. There, the formula gives $4,060.34.

IRC §32 eligibility, 2025 to 2027 limits, and assumptions

• Under 26 U.S.C. § 32(c)(1)(E) and § 32(m), you, your spouse (if filing jointly), and each claimed child need a work-valid SSN. Each SSN must be issued on or before the return due date (including extensions). Under § 32(c)(1)(C)–(D), you must be a U.S. citizen or full-year resident alien and cannot file Form 2555.
• Under 26 U.S.C. § 32(i), investment income (interest, dividends, net capital gains, and passive rents or royalties) cannot top $12,200 in 2026 or $11,950 in 2025. One dollar over the cap cuts the credit to $0.
• With 0 children (26 U.S.C. § 32(c)(1)(A)(ii)), you must live in the 50 states or D.C. for over half the year. You must be at least age 25 and under age 65 at year-end (one spouse is enough on a joint return). You cannot be another person's dependent or qualifying child.
• Under 26 U.S.C. § 32(d)(2)(B), a married filer filing separately qualifies only if a child lived with them for over half the year. They must live apart from their spouse for the last 6 months of the year. Or they must live apart at year-end under a written separation agreement or court decree.
• For 2025 (Rev. Proc. 2024-40, § 2.06), the top credits are $649, $4,328, $7,152, and $8,046, and plateau starts are $8,490, $12,730, and $17,880. Phase-out starts at $10,620 and $23,350 ($17,730 and $30,470 joint). Phase-out ends at $19,104, $50,434, $57,310, and $61,555 ($26,214, $57,554, $64,430, and $68,675 joint).

These figures are estimates for learning and planning, not financial, tax, legal or investment advice. Terms of use.

How to claim the credit on Form 1040 Line 27a and Schedule EIC

Follow Steps 1 to 6 and EIC Worksheet A (employees) or Worksheet B (self-employed) in the Form 1040 instructions. Enter the IRS EIC Table amount on Form 1040, line 27a. Check box 27b if you are clergy on Schedule SE. Check box 27c if you do not qualify or choose not to claim the credit.

If you claim 1 or more children, attach Schedule EIC (Form 1040). List each child's SSN, birth year, relationship, and months in your home. Separated spouses must also check the box in the Dependents section on page 1 of Form 1040. Pair your result with the child tax credit calculator and the federal income tax calculator to see your full refund.

Keep school and child care records that show your child's home address for more than 6 months in case the IRS asks for proof of residency. You can also ask the IRS to figure your credit by writing 'EIC' on the dotted line next to line 27a. If you save in an IRA or workplace retirement plan, check the Saver's Credit calculator to see if you qualify for a retirement savings credit too.

Earned Income Tax Credit (EITC) questions