Earned Income Tax Credit Calculator

What Is the Earned Income Tax Credit?

The Earned Income Tax Credit is a federal tax benefit for people who work and earn low to moderate income. It is designed to support workers, especially families with children.

Key points to know:

• You must have earned income from work or self-employment
• The credit amount depends on income, filing status, and children
• The credit is refundable, which means you can get money back even if you owe no tax
• Rules and limits change slightly each year

The credit is administered by the Internal Revenue Service, often called the IRS.

Why Use an Earned Income Tax Credit Calculator?

An EITC calculator removes guesswork. Instead of reading long tax tables, you enter a few numbers and get an instant estimate.

An EITC calculator helps you:

• Check if you are likely eligible
• Estimate your potential credit amount
• Understand how income affects your credit
• Plan ahead before filing your tax return

It is especially useful if your income changed during the year or if you are unsure how children affect your credit.

What Information the Calculator Uses

The calculator you provided is built for Tax Year 2025 (filed in 2026). It uses official IRS parameters and focuses on the most important eligibility factors.

1. Filing Status

The calculator supports two filing categories:

• Single, Head of Household, or Qualifying Widower
• Married Filing Jointly

Your filing status affects income limits and phase-out ranges.

2. Number of Qualifying Children

You can select:

• 0 children
• 1 child
• 2 children
• 3 or more children

To qualify, a child generally must:

• Live with you for more than half the year
• Be under 19, or under 24 if a full-time student

More qualifying children usually means a larger possible credit.

3. Earned Income

Earned income includes:

• Wages and salaries
• Tips
• Net income from self-employment

The calculator assumes your adjusted gross income is close to your earned income, which is common for many filers.

4. Investment Income

Investment income includes things like interest, dividends, and capital gains.

For tax year 2025:

• Investment income must be $11,950 or less
• If it is higher, you are not eligible for EITC

The calculator checks this limit before doing any other math.

How the EITC Calculator Works

The calculator follows the same basic structure used by the IRS. The credit changes as income rises, moving through three main stages.

Phase-In Range

At lower income levels, your credit increases as you earn more.

• You earn a percentage of your income as credit
• The rate depends on how many children you have

For example, with one child, the credit grows quickly as income increases.

Maximum Credit Range

Once you reach a certain income level:

• You qualify for the maximum credit
• Earning a bit more does not reduce your credit yet

This is often the best range to be in for EITC.

Phase-Out Range

At higher income levels:

• The credit slowly decreases as income increases
• Once income passes the limit, the credit drops to zero

The calculator clearly flags this range and explains why the credit is reduced.

Example: How the Calculator Estimates Credit

Here is a simple example:

• Filing status: Single
• Children: 2
• Earned income: $30,000
• Investment income: $0

In this case, the calculator checks:

• Income is below the phase-out end
• Investment income is under the limit
• Income falls within the eligible range

The result is an estimated EITC amount, along with a short explanation showing whether the credit is increasing, maxed out, or decreasing.

What the Results Section Shows

After clicking Calculate Credit, the calculator displays:

• Eligibility status (Eligible or Ineligible)
• Estimated EITC amount in dollars
• Credit breakdown, explaining how the number was calculated

This makes the result easy to understand, even if you are not familiar with tax formulas.

Important Limitations to Know

While the calculator is accurate for estimates, it is not a replacement for filing your taxes.

Keep these points in mind:

• Final eligibility is determined when you file your tax return
• Other income sources may affect your adjusted gross income
• Special situations may change the result

Use the calculator as a planning and education tool, not a final tax decision.

Who Should Use an EITC Calculator?

An Earned Income Tax Credit calculator is helpful if you:

• Work full-time or part-time
• Have children and earn under the phase-out limits
• Are self-employed with modest income
• Want to estimate your refund before filing

Even people without children can qualify, though the credit is smaller.