Earned Income Credit Estimator

What Is the Earned Income Tax Credit?

The Earned Income Tax Credit is a refundable federal tax credit for working people with low or moderate income.

Refundable means this:
Even if you owe little or no tax, you can still receive money back as a refund.

For many families, the EITC is one of the largest tax benefits available. Depending on your income and number of children, the credit can be worth up to $8,046 in 2025.

Who Can Qualify for the EITC?

To qualify for the 2025 Earned Income Tax Credit, you must meet several conditions.

1. You Must Have Earned Income

Earned income includes:

• Wages
• Salaries
• Tips
• Self-employment income
• Certain disability benefits

You must have at least $1 of earned income.

2. Your Investment Income Must Be Limited

For 2025, your investment income must be $11,950 or less.

Investment income includes:

• Interest
• Dividends
• Capital gains

If your investment income exceeds this limit, you are not eligible.

3. You Must Meet Basic Eligibility Rules

You must:

• Have a valid Social Security Number by the tax deadline
• Live in the United States for more than half the year
• Not be claimed as a dependent by someone else

If you have no qualifying children, you must also be:

• Age 25 to 64

4. Your Income Must Be Below IRS Limits

Your Adjusted Gross Income (AGI) must be below the 2025 limits.

2025 AGI Limits

If your AGI exceeds the limit for your filing status, you do not qualify.

Maximum EITC Amounts for 2025

The maximum credit depends on how many qualifying children you have:

These amounts are built directly into the estimator’s calculation logic.

How the Earned Income Credit Estimator Works

The calculator follows the IRS formula in three stages:

1. Phase-In Stage (Credit Increases)

At lower income levels, the credit increases as your income increases.

For example:

• 0 children → 7.65% phase-in rate
• 1 child → 34%
• 2 children → 40%
• 3+ children → 45%

This means if you earn more (within limits), your credit grows up to the maximum amount.

2. Maximum Credit Plateau

Once your income reaches a certain threshold, you receive the maximum credit amount.

For example:

• With 2 children, the maximum is $7,152.

Your credit stays at this amount until you reach the phase-out level.

3. Phase-Out Stage (Credit Decreases)

If your income continues to increase beyond the phase-out starting point, your credit gradually decreases.

Eventually, it reaches zero once your income exceeds the IRS limit.

The estimator automatically:

• Applies the correct phase-out rate
• Calculates the reduction
• Ensures the credit never exceeds the maximum

Step-by-Step: How to Use the EITC Estimator

Here’s how to use the calculator correctly.

Step 1: Select Filing Status

Choose:

• Single
• Married Filing Jointly
• Head of Household
• Qualifying Surviving Spouse

Married Filing Jointly usually has higher income limits.

Step 2: Enter Number of Qualifying Children

Select:

• 0
• 1
• 2
• 3 or more

Children must have valid SSNs.

Step 3: Enter Total Earned Income

Include:

• W-2 wages
• Self-employment income
• Tips

If your AGI is different from earned income, enter it separately.

Step 4: Enter Investment Income

Remember: it must be $11,950 or less for 2025.

Step 5: Optional Combat Pay

If you received nontaxable combat pay, you may include it. The estimator allows you to test whether including it increases your credit.

Step 6: Confirm Eligibility Criteria

Check all boxes that apply:

• Age requirement
• U.S. residency
• Valid SSN
• Not a dependent

If any required condition is missing, the calculator will show “NOT ELIGIBLE.”

Step 7: Click “Calculate EITC”

The results section will show:

• Estimated Credit
• Credit Calculation Phase
• Effective Rate
• Maximum Possible Credit
• Eligibility Status

If eligible, it will display “ELIGIBLE.”
If not, it explains why.

What the Results Mean

Estimated Credit

Your projected 2025 Earned Income Tax Credit.

Credit Calculation Phase

Tells you whether you are:

• In the Phase-In stage
• At the Maximum Plateau
• In the Phase-Out stage
• Fully phased out

Effective Rate

Shows what percentage of your income becomes credit.

Eligibility Status

Confirms whether you qualify based on the information entered.

Why an EITC Estimator Is Useful

Many people miss out on the Earned Income Tax Credit because they:

• Assume they earn too much
• Don’t understand the phase-in and phase-out rules
• Don’t realize they qualify without children

An estimator gives you a quick answer before filing your return. It also helps you plan ahead if your income changes.

For example:
If you expect your income to increase next year, you can estimate whether your credit will shrink or disappear.

Important Disclaimer

This estimator provides an estimate only.
Your final credit amount depends on your full tax return and required forms such as Schedule EIC attached to Form 1040.

Always verify details with official IRS guidance or a qualified tax professional.