Skip to content
TaxcreditsUnited States only

Earned Income Tax Credit Calculator

Earned income tax credit across its three phases. On the phase-in the credit rises with income, giving a negative effective marginal tax rate, and on the phase-out it falls, adding to the marginal rate.

Also called: earned income credit, eic calculator.

$
$
$
$
$
$
$
$
Earned income credit
$6,060.28

$6,060.28 on earned income of 28,000. You are on the phase-out of the credit. On the phase-out, an extra dollar earned reduces the credit, which adds to your effective marginal rate. Investment income is within the limit.

Maximum for this family size
$7,152.00
Effective marginal rate from the credit
20.68%
Credit at the plateau
$7,152.00
Income producing the maximum
$17,400.00
Position on the curve
phase-out
On the marginal effect
On the phase-out, an extra dollar earned reduces the credit, which adds to your effective marginal rate.
On investment income
Investment income is within the limit.
How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The credit rises with earned income to a maximum, holds flat over a plateau, then falls to zero. That shape has an unusual consequence: while phasing in, an extra dollar earned brings additional credit, so the effective marginal rate is negative and earning more is rewarded twice. While phasing out the reverse applies and the credit reduction adds to the marginal rate, which for some families produces effective rates above those on much higher incomes. Investment income above a threshold disqualifies the credit entirely, regardless of how low earned income is.

a trapezoid: rising, flat, then falling, which makes the marginal rate negative on the way up
I
Earned income

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a family in the phase-out

Earned income
$28,000.00
Adjusted gross income
$28,000.00
Qualifying children
2
Maximum credit for this family size
$7,152.00
Income where the maximum begins
$17,400.00
Phase-out begins at
$22,720.00
Credit reaches zero at
$57,310.00
Investment income
$0.00
Investment income limit
$11,600.00

Earned income credit$6,060.28

7152 less 5280 x (7152/34590)

Open this example

investment income disqualifies entirely

Earned income
$28,000.00
Adjusted gross income
$28,000.00
Qualifying children
2
Maximum credit for this family size
$7,152.00
Income where the maximum begins
$17,400.00
Phase-out begins at
$22,720.00
Credit reaches zero at
$57,310.00
Investment income
$15,000.00
Investment income limit
$11,600.00

Earned income credit$0.00

boundary: the cliff

Open this example

no income means no credit

Earned income
$0.00
Adjusted gross income
$0.00
Qualifying children
2
Maximum credit for this family size
$7,152.00
Income where the maximum begins
$17,400.00
Phase-out begins at
$22,720.00
Credit reaches zero at
$57,310.00
Investment income
$0.00
Investment income limit
$11,600.00

Earned income credit$0.00

degenerate case

Open this example

Method and limits

What it assumes

  • The parameters entered match your filing status and family size.

What it deliberately does not model

  • The four parameters differ by filing status and number of children, and are indexed annually.
  • Residency, age and identification requirements are not checked here.
  • This is an estimate, not a determination of eligibility.

Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator

Frequently asked questions

Can earning more reduce my credit?
Yes, once you pass the plateau. The phase-out reduces the credit as income rises, which adds to your effective marginal rate.
Does investment income matter?
It disqualifies you entirely above a threshold, no matter how low your earned income is. It is a cliff, not a taper.