Earned Income Tax Credit Calculator
Calculate your Earned Income Tax Credit (EITC) for 2024. The EITC is a refundable tax credit for low to moderate-income working families and individuals.
EITC Summary
Credit Breakdown
Income Comparison
Understanding the Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate-income working individuals and families. It's designed to encourage work and help offset the burden of Social Security and Medicare taxes.
EITC Amounts for 2024
| Children | Maximum Credit | Income Range | Phase-Out Begins |
|---|---|---|---|
| 0 Children | $600 | $1 - $7,830 | $9,800 |
| 1 Child | $4,220 | $1 - $11,600 | $22,600 |
| 2 Children | $6,960 | $1 - $15,580 | $22,600 |
| 3+ Children | $7,830 | $1 - $15,580 | $22,600 |
Eligibility Requirements
Income Requirements
- Earned income between $1 and maximum
- Investment income under $11,000
- Modified AGI below phase-out threshold
- Tax year 2024 amounts
Other Requirements
- Valid Social Security Number
- U.S. citizen or qualifying resident
- Cannot be claimed as dependent
- File federal tax return
Qualifying Children
Age
Under 19, or
Under 24 if student, or
Any age if disabled
Relationship
Son, daughter, or descendant, or
Brother, sister, or stepsibling, or
Foster child
Residency
Lived with you for more than half the year
Provided more than half their support
Did not provide more than half own support
How EITC Works
The EITC amount is based on your earned income and number of qualifying children. The credit increases with income up to a maximum amount, then phases out for higher incomes.
EITC Structure
Phase 1: Build-Up
Credit increases with earned income
Rate depends on number of children
Phase 2: Plateau
Maximum credit amount
Flat amount for income range
Phase 3: Phase-Out
Credit decreases with higher income
Gradually reduced to zero
Filing and Payment
When to Claim
- Claim on Form 1040 or 1040-SR
- Use Schedule EITC if needed
- Due with tax return (April 15, 2025)
- Can be claimed by one spouse only
Payment Options
- Tax refund with return
- Advance payments through employer
- Direct deposit or paper check
- Additional Child Tax Credit if applicable
EITC vs. Other Credits
| Credit | Eligibility | Maximum Amount | Refundable |
|---|---|---|---|
| EITC | Working families, low income | $7,830 | Yes |
| Child Tax Credit | Families with children | $2,000 per child | Partially |
| Child Care Credit | Childcare expenses | $3,000 per child | No |
Key Takeaways
- EITC provides up to $7,830 for families with 3+ children
- You must have earned income to qualify
- Investment income cannot exceed $11,000
- Credit phases out at higher income levels
- Qualifying children must meet age and relationship tests
- EITC is fully refundable - you get the money even if you owe no taxes
- Claim on your federal tax return
- Advance payments available through some employers