How the Earned Income Tax Credit Works
The EITC is a refundable tax credit that grows with earned income up to a maximum, remains flat, then phases out as income rises. It provides the largest benefit to families with children and moderate earnings. The credit is fully refundable — if it exceeds your tax bill, you receive the difference as a refund.
2026 EITC Limits by Family Size
| Children | Max Credit | Single Income Limit |
|---|---|---|
| 0 | $632 | $18,591 |
| 1 | $4,213 | $56,004 |
| 2 | $6,960 | $63,398 |
| 3+ | $7,830 | $66,819 |
To qualify, you must have earned income from work (wages, self-employment). Investment income must be $11,600 or less. This calculator provides an estimate — actual EITC is calculated on your federal tax return (Schedule EIC).
Frequently Asked Questions
Yes. If the EITC exceeds the amount of income tax you owe, the IRS pays you the difference as a tax refund. You must file a tax return to claim it.
Yes, self-employment income counts as earned income. You must report net earnings from self-employment. Note that your net self-employment income after deducting half of the SE tax is used.