What the credit is
The Earned Income Tax Credit (EITC) is a credit for people who work and earn below a limit that depends on filing status and the number of qualifying children. It reduces the tax you owe and, because it is refundable, the IRS pays out the rest: a household with no tax liability still receives the full credit as a refund. The amounts are set each year; the 2026 figures come from Rev. Proc. 2025-32.
The 2026 amounts
| Qualifying children | Maximum credit | Earned income for the maximum | Phase-out begins (joint) | Credit ends (joint) | Phase-out begins (others) | Credit ends (others) |
|---|---|---|---|---|---|---|
| None | $664 | $8,680 | $18,140 | $26,820 | $10,860 | $19,540 |
| One | $4,427 | $13,020 | $31,160 | $58,863 | $23,890 | $51,593 |
| Two | $7,316 | $18,290 | $31,160 | $65,899 | $23,890 | $58,629 |
| Three or more | $8,231 | $18,290 | $31,160 | $70,244 | $23,890 | $62,974 |
"Others" means single, head of household and qualifying surviving spouse, and also married taxpayers who file separately under the special rules for separated spouses. The phase-out runs on adjusted gross income or earned income, whichever is greater. The credit is not allowed at all if investment income for 2026 exceeds $12,200.
How the credit moves with income
plateau: credit = maximum, until AGI (or earned income if greater) reaches the threshold
phase-out: credit = maximum × (completed amount − income) ÷ (completed amount − threshold)
A single parent with one qualifying child and $30,000 of wages and AGI in 2026:
| Step | Figure |
|---|---|
| Maximum credit, one child | $4,427 |
| Phase-out range, single | $23,890 to $51,593 |
| Reduction per dollar above $23,890 | 15.98% (maximum ÷ width of the range) |
| Income above the threshold | $6,110 |
| Reduction | $976 |
| Credit | about $3,451 |
The same family on a joint return with the same income would be $1,160 under the joint threshold and receive the full $4,427. The figure is approximate because the IRS publishes the credit in a lookup table in the Form 1040 instructions, which is what the return uses; the formula shows why a raise of $1,000 in the phase-out range costs about $160 of credit. The paycheck calculator turns an hourly wage into the yearly earned income the curve runs on, and the self-employment tax calculator the net earnings that count for a self-employed worker.
| Earned income and AGI | No children, single | One child, single | Two children, joint | Three or more, joint |
|---|---|---|---|---|
| $10,000 | $664 | $3,400 | $4,000 | $4,500 |
| $20,000 | $0 | $4,427 | $7,316 | $8,231 |
| $30,000 | $0 | $3,451 | $7,316 | $8,231 |
| $40,000 | $0 | $1,853 | $5,454 | $6,369 |
| $50,000 | $0 | $255 | $3,348 | $4,263 |
| $60,000 | $0 | $0 | $1,242 | $2,157 |
Rules for the worker
- Earned income. Wages, salaries and tips, including the full amount of tip and overtime income; gig and freelance work; self-employment income from a business, farm or ministry; household employee wages; taxable union strike benefits; certain disability benefits received before minimum retirement age; nontaxable combat pay if you elect to include it. Not earned income: interest and dividends, pensions and annuities, Social Security, unemployment benefits, alimony and child support, and pay for work while an inmate.
- Investment income of no more than $12,200 for 2026.
- A valid Social Security number issued on or before the due date of the return, including extensions, for you, your spouse if filing jointly, and each child claimed.
- US citizen or resident alien all year, and no Form 2555 for foreign earned income.
- Filing status married filing jointly, head of household, qualifying surviving spouse or single. Married filing separately qualifies only with a qualifying child who lived with you for more than half the year and either six months apart from your spouse or a legal separation.
- Without a qualifying child, you must be at least 25 but under 65 at the end of the year.
Rules for the child
| Test | Requirement |
|---|---|
| Relationship | son, daughter, stepchild, eligible foster child, brother, sister, half or step sibling, or a descendant of any of them (grandchild, niece, nephew) |
| Age | under 19 at year end and younger than you (or your spouse if filing jointly); under 24 and a full-time student for at least five months; or any age if permanently and totally disabled |
| Residency | lived with you in the United States for more than half the tax year |
| Joint return | did not file a joint return, except only to claim a refund of withheld or estimated tax |
Only one person can claim a given child. If more than one qualifies, the child is the qualifying child of the parent the child lived with longer during the year, and if that time was equal, of the parent with the higher AGI. The same child usually also supports the child tax credit, which has different income rules and is claimed alongside the EITC.
Claiming it
- File a return even if your income is below the filing requirement; the credit is paid only on a filed return.
- Expect the refund after mid-February. The IRS states that by law it must wait until then to issue refunds to taxpayers who claim the EITC.
- Check earned income against AGI. The phase-out uses whichever is greater, so investment income or a spouse's pension can reduce the credit even though it is not earned income.
This guide reports the 2026 federal figures in Rev. Proc. 2025-32 and the rules on the IRS pages cited; any state credit is a matter for the state return.
Frequently asked questions
How much is the Earned Income Tax Credit for 2026?
Up to $664 with no qualifying children, $4,427 with one, $7,316 with two and $8,231 with three or more, per IRS Rev. Proc. 2025-32. The credit rises with earned income up to the earned income amount, stays at the maximum until adjusted gross income or earned income reaches the threshold phaseout amount, and falls to zero at the completed phaseout amount: $51,593 with one child for a single filer in 2026, $58,863 on a joint return.
Who qualifies for the EITC?
You need earned income from a job or self-employment, investment income of no more than $12,200 for 2026, a valid Social Security number issued by the return due date for you, your spouse and any child claimed, US citizenship or resident alien status all year, and a filing status other than married filing separately unless you meet the separated-spouse rules. Without a qualifying child you must be at least 25 but under 65 at the end of the year. You cannot file Form 2555 for foreign earned income.
What counts as earned income for the EITC?
Wages, salaries and tips, including the full amount of tip and overtime income, gig and freelance income, self-employment income from a business or farm, household employee wages, taxable union strike benefits, certain disability benefits received before minimum retirement age, and nontaxable combat pay if you elect to include it. Interest and dividends, pensions and annuities, Social Security, unemployment benefits, alimony, child support and pay for work while an inmate do not count.
Who is a qualifying child for the EITC?
A son, daughter, stepchild, foster child, sibling, half or step sibling, or a descendant of any of them such as a grandchild, niece or nephew, who lived with you in the United States for more than half the year, was under 19 at year end and younger than you, under 24 and a full-time student for at least five months, or any age if permanently and totally disabled, and who did not file a joint return except to claim a refund. If two people could claim the same child, the IRS tie-breaker gives the child to the parent the child lived with longer, then to the parent with the higher AGI.
When do EITC refunds arrive?
The IRS says that by law it must wait until mid-February to issue refunds to taxpayers who claim the Earned Income Tax Credit, so a return filed in late January is not paid out sooner. The credit reduces the tax you owe and the rest is refunded, which is why it is worth filing even when your income is below the filing requirement.
Sources
- IRS Rev. Proc. 2025-32, section 4.06 Earned Income Credit (for taxable years beginning in 2026: the earned income amounts, maximum credits, threshold and completed phaseout amounts by number of qualifying children and filing status; the $12,200 investment income limit)
- IRS: Who qualifies for the Earned Income Tax Credit (valid SSN by the due date; US citizen or resident alien all year; no Form 2555; filing statuses and the married filing separately conditions; age 25 to under 65 without a qualifying child)
- IRS: Earned income and Earned Income Tax Credit tables (what counts as earned income and what does not; the 2025 table)
- IRS: Qualifying child rules for the EITC (relationship, age, residency and joint return tests; the tie-breaker)
- IRS: Earned Income Tax Credit (the credit reduces tax owed and may increase the refund; refunds held until mid-February by law)
General information based on the sources above, not tax, legal or financial advice.