Earned Income Tax Credit Calculator 2024

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2024 Earned Income Tax Credit (EITC) Calculator

Your Information

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Single, Divorced, or Separated Married Filing Jointly
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Estimated EITC:

$0.00
Enter your details above to see your estimated EITC.

Understanding the Earned Income Tax Credit (EITC) for 2024

The Earned Income Tax Credit (EITC), also known as the Earned Income Credit (EIC), is a refundable tax credit for low-to-moderate income working individuals and families. It was designed to help reduce the tax burden on these individuals and families and to encourage work.

How EITC Works

The EITC is calculated based on your earned income, adjusted gross income (AGI), the number of qualifying children you have, and your filing status. It is a "refundable" credit, meaning that if the credit is more than the amount of tax you owe, you will receive the difference back as a refund.

Key Factors for 2024 Eligibility and Calculation:

  • Earned Income: This includes wages, salaries, tips, and other taxable compensation for work you performed. It does not include unemployment benefits or pension income.
  • Adjusted Gross Income (AGI): This is your gross income minus certain specific deductions.
  • Qualifying Child: To be a qualifying child, a person must meet several tests, including age, relationship, residency, and joint return tests.
  • Filing Status: You cannot claim the EITC if you are married filing separately, unless you meet specific exceptions.
  • Investment Income Limitation: For 2024, your investment income must be $11,000 or less.
  • AGI Limits: There are AGI limits that vary based on the number of qualifying children and your filing status. If your AGI exceeds these limits, you do not qualify.

2024 EITC Income Limits (Approximate – Subject to IRS Updates):

The exact EITC amounts and AGI limits are determined by the IRS annually. For 2024, the following table provides a general idea of the income thresholds. This calculator uses simplified thresholds for estimation purposes. Always consult IRS Publication 596 for definitive figures.

Maximum EITC for 2024:

  • 3+ Qualifying Children: $7,430
  • 2 Qualifying Children: $6,604
  • 1 Qualifying Child: $3,995
  • 0 Qualifying Children: $632

Approximate AGI Limits for 2024 (for a qualifying child):

  • Married Filing Jointly: Around $60,000+
  • All Other Filers: Around $50,000+

Approximate AGI Limits for 2024 (for no qualifying children):

  • Married Filing Jointly: Around $25,000+
  • All Other Filers: Around $18,000+

How the Calculator Works (Simplified Logic):

This calculator uses IRS guidelines to provide an estimated EITC. The actual credit is calculated by the IRS based on specific tax tables. The general idea is that the credit increases as earned income rises to a certain point, then it phases out as income continues to increase.

The calculation involves:

  1. Determining the maximum credit based on the number of qualifying children.
  2. Checking if the entered AGI and filing status are within the income phase-out range for the specified number of children.
  3. Calculating the credit amount, which is a percentage of earned income up to a certain threshold, and then phases out as income increases further.

Disclaimer: This calculator is for informational and estimation purposes only. It is not a substitute for professional tax advice. Tax laws are complex and can change. Consult with a qualified tax professional or refer to official IRS resources for accurate tax filing. The specific formulas used by the IRS are complex and depend on detailed tax tables.

function calculateEITC() { var agi = parseFloat(document.getElementById("agi").value); var numDependents = parseInt(document.getElementById("numDependents").value); var filingStatus = document.getElementById("filingStatus").value; var hasChild = document.getElementById("hasChild").value; var resultElement = document.getElementById("result"); var amountElement = resultElement.querySelector('.amount'); var noteElement = resultElement.querySelector('.note'); // Basic validation for AGI if (isNaN(agi) || agi < 0) { amountElement.textContent = "$0.00"; noteElement.textContent = "Please enter a valid Adjusted Gross Income (AGI)."; return; } var estimatedEITC = 0; var effectiveNumDependents = (hasChild === 'yes') ? numDependents : 0; // EITC Tables for 2024 (Simplified – actual IRS tables are more complex) // Source: Based on general IRS guidelines and income phase-out/in rules. // These are approximations for calculator purposes. var maxEITC = 0; var incomePhaseOutStart = 0; var incomePhaseOutEnd = 0; // Define thresholds based on number of qualifying children and filing status if (effectiveNumDependents === 0) { maxEITC = 632; if (filingStatus === 'married') { incomePhaseOutStart = 18000; incomePhaseOutEnd = 25000; } else { // single incomePhaseOutStart = 15000; incomePhaseOutEnd = 18000; } } else if (effectiveNumDependents === 1) { maxEITC = 3995; if (filingStatus === 'married') { incomePhaseOutStart = 45000; incomePhaseOutEnd = 55000; } else { // single incomePhaseOutStart = 40000; incomePhaseOutEnd = 50000; } } else if (effectiveNumDependents === 2) { maxEITC = 6604; if (filingStatus === 'married') { incomePhaseOutStart = 50000; incomePhaseOutEnd = 60000; } else { // single incomePhaseOutStart = 45000; incomePhaseOutEnd = 55000; } } else { // 3 or more dependents maxEITC = 7430; if (filingStatus === 'married') { incomePhaseOutStart = 55000; incomePhaseOutEnd = 65000; } else { // single incomePhaseOutStart = 50000; incomePhaseOutEnd = 60000; } } // Simplified calculation logic based on income phase-in and phase-out if (agi <= 0) { estimatedEITC = 0; // Must have earned income } else if (agi = incomePhaseOutStart && agi <= incomePhaseOutEnd) { // Peak range or start of phase-out // For simplicity, if within the phase-out range, we'll estimate the credit // by assuming it's near the peak or starting to phase out. // A more accurate calculation would use the exact point in the phase-out. // Let's approximate the credit as maxEITC minus a portion based on how far into the phase-out range we are. var rangeLength = incomePhaseOutEnd – incomePhaseOutStart; var currentPositionInPhaseOut = agi – incomePhaseOutStart; var phaseOutRate = 0; // Percentage of maxEITC lost per dollar in phase-out range if (effectiveNumDependents === 0) { phaseOutRate = maxEITC / (incomePhaseOutEnd – incomePhaseOutStart); } else if (effectiveNumDependents === 1) { phaseOutRate = maxEITC / (incomePhaseOutEnd – incomePhaseOutStart); } else if (effectiveNumDependents === 2) { phaseOutRate = maxEITC / (incomePhaseOutEnd – incomePhaseOutStart); } else { phaseOutRate = maxEITC / (incomePhaseOutEnd – incomePhaseOutStart); } estimatedEITC = maxEITC – (currentPositionInPhaseOut * (maxEITC / rangeLength)); estimatedEITC = Math.max(0, estimatedEITC); // Ensure it doesn't go below zero estimatedEITC = Math.min(estimatedEITC, maxEITC); // Ensure it doesn't exceed maxEITC } else { // After phase-out range estimatedEITC = 0; } // Final checks and formatting estimatedEITC = Math.max(0, estimatedEITC); // Cannot be negative amountElement.textContent = "$" + estimatedEITC.toFixed(2); noteElement.textContent = "This is an estimate. Consult IRS Publication 596 and a tax professional for exact figures."; }

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