Earned Income Tax Credit (EITC) Calculator

Calculate your Earned Income Tax Credit . Estimate your potential tax refund with this free calculator for low to moderate-income workers and families.

What is EITC? The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on your income and number of children.

Note: This calculator provides estimates. Consult a tax professional or use IRS Free File for accurate filing.

Select the tax year you're filing for
Your tax filing status affects EITC eligibility and amounts
Children must meet IRS qualifying child rules
$
Your total earned income for the year (wages, salary, self-employment)
$
Interest, dividends, capital gains, etc. If over $11,000, you cannot claim EITC.
Investment income exceeds $11,000 limit
Some states offer their own EITC as a percentage of federal credit
Common Scenarios (Click to Load)
Single, No Children
Single filer with no children, $18,000 income
Single Parent, 1 Child
Head of household with 1 child, $25,000 income
Married Couple, 2 Children
Married filing jointly with 2 children, $45,000 income
Large Family, 3+ Children
Married filing jointly with 3+ children, $50,000 income
Check if you receive disability benefits or have a permanent disability
Calculating...

Understanding the Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is one of the largest anti-poverty programs in the United States. It's designed to help low- to moderate-income workers and families keep more of what they earn. Unlike deductions that reduce taxable income, EITC is a credit that directly reduces your tax bill dollar-for-dollar.

Key EITC Facts:

  • Refundable: If EITC exceeds your tax liability, you receive the difference as a refund
  • Work-based: You must have earned income from employment or self-employment
  • Income limits: Eligibility depends on income and family size
  • Investment income limit: Must be $11,000 or less for 2023 ($11,600 for 2024)
  • Annual adjustments: Credit amounts and income limits adjust for inflation each year

2023 EITC Income Limits and Maximum Credits

Number of Children Single, Head of Household, or Widowed Married Filing Jointly Maximum Credit (2023)
0 Children $17,640 $24,210 $600
1 Child $46,560 $53,120 $3,995
2 Children $52,918 $59,478 $6,604
3+ Children $56,838 $63,398 $7,430

* Investment income must be $11,000 or less for 2023. Income limits are for tax year 2023.

State EITC Programs

Many states offer their own EITC as a percentage of the federal credit. Some states with EITC programs include:

  • California: Up to 85% of federal EITC
  • New York: 30% of federal EITC
  • Maryland: 50% of federal EITC
  • New Jersey: 40% of federal EITC
  • Illinois: 18% of federal EITC
  • Massachusetts: 30% of federal EITC
  • Oregon: 9% of federal EITC
  • Washington D.C.: 70% of federal EITC
  • Minnesota: Varies based on income
  • Colorado: 10% of federal EITC

EITC Calculation Process

1

Determine Eligibility: Check if you meet basic requirements: have earned income, meet filing status rules, have a valid Social Security number, and be a U.S. citizen or resident alien all year.

2

Check Investment Income: Your investment income (interest, dividends, capital gains) must be $11,000 or less for 2023. If it exceeds this limit, you cannot claim EITC regardless of earned income.

3

Identify Qualifying Children: A qualifying child must meet relationship, age, residency, and joint return tests. Children must be under 19 (or under 24 if a student) or any age if permanently disabled.

4

Calculate Earned Income: Include wages, salaries, tips, net earnings from self-employment, and certain disability payments. Do not include pension, annuities, Social Security, unemployment, alimony, or child support.

5

Apply EITC Formula: The credit amount increases with each dollar of earned income until reaching the maximum credit, stays at maximum through a plateau range, then gradually phases out as income increases further.

Who Qualifies for EITC?

  • Work Requirement: Must have earned income from employment or self-employment
  • Income Limits: Must fall within the income limits for your filing status and number of children
  • Investment Income Limit: Investment income must be $11,000 or less (2023)
  • Social Security Number: You, your spouse (if filing jointly), and any qualifying children must have valid SSNs
  • Filing Status: Cannot use "Married Filing Separately" unless you meet special rules
  • Residency: Must be a U.S. citizen or resident alien all year

Common Mistakes to Avoid

  • Not filing a return: Many eligible people don't claim EITC because they don't file a tax return
  • Investment income oversight: Forgetting to count investment income that exceeds the $11,000 limit
  • Incorrect filing status: Using the wrong status can affect eligibility and credit amount
  • Missing qualifying child: Failing to claim all eligible children or claiming ineligible children
  • Math errors: Incorrect calculation of earned income or credit amount
  • Missing deadlines: You can claim EITC for previous years by filing amended returns

Frequently Asked Questions

Investment income includes taxable interest, dividends, capital gains, rental and royalty income (unless from a business you actively participate in), and passive business income. It does not include Social Security benefits, retirement account distributions (unless they include investment income), or unemployment benefits.

As of 2023, 31 states plus Washington D.C. have state EITC programs. You can check your state's department of revenue website or use the IRS's state-by-state guide. Some states require you to file a separate form to claim the state EITC, while others automatically calculate it when you claim the federal EITC.

If your investment income exceeds $11,000 for 2023 ($11,600 for 2024), you are not eligible for EITC regardless of your earned income or family size. This limit applies to the total of all investment income, not each individual source. There are no exceptions to this rule.

Yes, self-employed individuals can claim EITC. Your earned income is your net earnings from self-employment (gross income minus business expenses). You must report this on Schedule C and pay self-employment tax to qualify. Keep good records of your business income and expenses.

You can file amended returns for up to three previous tax years to claim EITC you may have missed. Use Form 1040-X to amend your return. Many free tax preparation sites can help with this process. The IRS estimates that 20% of eligible taxpayers don't claim EITC each year, so it's worth checking previous years.