The earned income tax credit for tax year 2026 (returns filed in 2027)
Updated October 2026
Earned income. You need wages, salary, tips or net self-employment earnings; pensions, unemployment and Social Security do not count. Income limits. Both earned income and AGI must be under the 2026 limit for your family (the completed phase-out amounts below). Investment income (interest, dividends, capital gains, net rents and royalties) must be $12,200 or less for 2026. Social Security numbers valid for work are required for you, your spouse on a joint return, and each child counted. Filing status: married people must file jointly unless they meet the separated-spouse rule (a qualifying child lived with you more than half the year and you lived apart from your spouse for the last six months of the year, or are legally separated). No qualifying child: you must be at least 25 and under 65 at year end, live in the United States more than half the year, and not be someone else’s dependent or qualifying child.
Qualifying child. Your son, daughter, stepchild, foster child, sibling or a descendant of one; under 19 at year end (under 24 if a full-time student, any age if permanently disabled) and younger than you; and lived with you in the United States more than half the year.
The credit grows with each dollar earned at the credit rate until earned income reaches the “earned income amount,” stays at the maximum across a plateau, then shrinks at the phase-out rate once earned income (or AGI, if larger) passes the threshold. The figures for 2026 come from IRS Revenue Procedure 2025-32 (October 9, 2025); the rates are set in section 32 of the tax code.
| Qualifying children | Credit rate | Full credit at | Maximum credit | Phase-out starts (other / joint) | Phase-out rate | Credit ends (other / joint) |
|---|---|---|---|---|---|---|
| None | 7.65% | $8,680 | $664 | $10,860 / $18,140 | 7.65% | $19,540 / $26,820 |
| 1 | 34.00% | $13,020 | $4,427 | $23,890 / $31,160 | 15.98% | $51,593 / $58,863 |
| 2 | 40.00% | $18,290 | $7,316 | $23,890 / $31,160 | 21.06% | $58,629 / $65,899 |
| 3 or more | 45.00% | $18,290 | $8,231 | $23,890 / $31,160 | 21.06% | $62,974 / $70,244 |
The IRS does not apply the formula to your exact income. Its EIC Table splits income into $50 bands and lists the credit figured at the middle of each band, and this calculator does the same. Publication 596’s own example (tax year 2025): a single filer with one qualifying child looks up $2,455. That falls in the $2,450-$2,500 band, whose midpoint is $2,475. In the phase-in, the credit is 34% × $2,475 = $841.50, which rounds to $842, the amount the table shows. Choosing 2025 in the calculator reproduces it.
For the default 2026 case, a single parent of two with $24,000 of wages and the same AGI: the band is $24,000-$24,050, midpoint $24,025. That is $135 past the $23,890 phase-out start, so the credit is $7,316 − 21.06% × $135 = $7,287.57, rounded to $7,288.
Earned income is wages from Form W-2 box 1 plus net earnings from self-employment after the deduction for half of self-employment tax (Schedule SE). Nontaxable combat pay can be included if you elect it. AGI is Form 1040 line 11; when it is at or above the phase-out start, the IRS computes the credit on both earned income and AGI and allows the smaller. Investment income includes taxable and tax-exempt interest, dividends and capital gains. Choose the tax year: 2026 for returns filed in early 2027, or 2025 for a return you are still filing or amending.
| Household | Earned income | Position on the curve | 2026 EITC |
|---|---|---|---|
| Single parent, 2 children, $24,000 wages | $24,000 | phase-out | $7,288 |
| Married couple, 1 child, $52,000 wages | $52,000 | phase-out | $1,093 |
| No children, age 30, $12,000 wages | $12,000 | phase-out | $575 |
| Self-employed parent, 1 child, $9,000 net profit | $8,364 | phase-in | $2,848 |
| Single parent, 1 child, $30,000 wages, $12,250 of interest and dividends | $30,000 | not allowed (investment income over $12,200) | $0 |
| Married couple, 3 children, $40,000 wages | $40,000 | phase-out | $6,364 |
The self-employed parent’s $9,000 profit becomes $8,364 of earned income after subtracting half of the self-employment tax, which keeps them in the phase-in. The investor in the fifth row loses the whole credit, not part of it, because the investment-income limit is a cliff.
Until 2021 married people filing separately could not claim the EITC at all. They now can only under the separated-spouse rule, and they use the single thresholds. Workers without a qualifying child get a small credit (at most $664 for 2026) and must meet the age 25-64 test; if you are married filing jointly, only one spouse has to meet it.
As of the IRS list updated November 26, 2025, 28 states, the District of Columbia and New York City offer their own earned income credit, most as a percentage of the federal amount. They are refundable everywhere except Delaware, Ohio and South Carolina. Rates and rules differ by state; check your state tax agency.
Under the PATH Act (26 U.S.C. 6402(m)), the IRS may not issue a refund on a return that claims the EITC or the additional child tax credit before February 15. Filing in January is still fine; the hold covers the whole refund, not just the credit.
It does not test whether a child meets every qualifying-child rule, settle a tie when two people could claim the same child, or apply the rules for clergy, members of the military, or people with income excluded from tax. It assumes the earned income you enter is already correct, including the self-employment adjustment. If your claim was reduced or denied in a past year, you may need Form 8862 before claiming again. The IRS EITC Assistant, a Volunteer Income Tax Assistance (VITA) site, or a tax professional can confirm eligibility.
Claiming a child who did not live with you more than half the year, the most common EITC error. Two people claiming the same child, such as separated parents or a parent and grandparent. Misreporting self-employment income, either too high to reach the plateau or too low. Forgetting investment income: one capital gain distribution can push it over the limit. Filing separately without meeting the separated-spouse rule. Using an ITIN; an SSN valid for work is required.