Calculate your potential Earned Income Tax Credit based on your filing status, income, and number of qualifying children.
Single, Head of Household, or Qualifying Widow(er)
Married Filing Separately
Married Filing Jointly
For 2023, investment income must be $11,000 or less to qualify for EITC. For 2024, this limit is $11,160.
Enter 0 if you do not have qualifying children. Maximum of 3 recognized for calculation.
Your Estimated Earned Income Credit:
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Understanding the Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC), also known as the Earned IncomeCredit (EIC), is a refundable tax credit for low-to-moderate-income working individuals and couples in the United States. It was established by the U.S. federal government to help offset the burden of payroll taxes and to encourage work.
How the EITC is Calculated
The EITC calculation is complex and depends on several factors:
Filing Status: Whether you are married filing jointly, single, head of household, etc.
Earned Income: Income from wages, salaries, tips, and other taxable employee compensation. Net earnings from self-employment also count.
Adjusted Gross Income (AGI): This is your gross income minus certain deductions. For EITC purposes, your AGI cannot exceed your earned income.
Investment Income: Interest, dividends, capital gains, etc. There are limits on how much investment income you can have to qualify.
Number of Qualifying Children: The credit amount increases with the number of qualifying children, up to a certain limit (typically 3).
Key Calculation Components & Limits (Illustrative – actual IRS tables are definitive)
The EITC is essentially a percentage of your earned income, but it has a "phase-in" and a "phase-out" range. The maximum credit amount depends on the number of children and filing status.
Phase-In
The credit amount increases as your earned income rises, up to a certain point.
Phase-Out
Once your income reaches a certain level (which varies by filing status and number of children), the credit amount begins to decrease as your income continues to rise. If your income exceeds the upper limit, you receive no credit.
Investment Income Limit
For 2023, your investment income must be $11,000 or less to qualify. For 2024, this limit is $11,160.
Qualifying Child Rules
To be a qualifying child for EITC purposes, a child generally must meet tests for age, residency, relationship, and joint return. The child must be under age 19 at the end of the tax year, or under age 24 if a full-time student, or any age if permanently and totally disabled. The child must also live with the taxpayer in the United States for more than half the year.
EITC Income Limits (Example for 2023 – subject to change annually)
These are approximate limits and can vary slightly based on specific IRS publications. The calculator uses simplified logic based on common year limits.
For those with no qualifying children:
Married Filing Jointly: Maximum Adjusted Gross Income (AGI) $24,210
Single/Head of Household/Qualifying Widow(er): Maximum AGI $17,640
For those with one qualifying child:
Married Filing Jointly: Maximum AGI $50,162
Single/Head of Household/Qualifying Widow(er): Maximum AGI $43,600
For those with two qualifying children:
Married Filing Jointly: Maximum AGI $56,838
Single/Head of Household/Qualifying Widow(er): Maximum AGI $50,276
For those with three or more qualifying children:
Married Filing Jointly: Maximum AGI $59,187
Single/Head of Household/Qualifying Widow(er): Maximum AGI $52,625
Important Disclaimer
This calculator provides an ESTIMATE based on simplified rules and approximate 2023/2024 income thresholds. Tax laws are complex and change annually. The actual amount of your EITC can only be determined by filing your tax return or using the official IRS EITC Assistant tool. Consult with a qualified tax professional for personalized advice.
// EITC Calculation Logic (Simplified for illustrative purposes, based on 2023/2024 thresholds)
function calculateEITC() {
var earnedIncome = parseFloat(document.getElementById("earnedIncome").value);
var investmentIncome = parseFloat(document.getElementById("investmentIncome").value);
var numChildren = parseInt(document.getElementById("numChildren").value);
var filingStatus = parseInt(document.getElementById("filingStatus").value);
// — Input Validation —
if (isNaN(earnedIncome) || earnedIncome < 0) {
alert("Please enter a valid number for Earned Income.");
return;
}
if (isNaN(investmentIncome) || investmentIncome < 0) {
alert("Please enter a valid number for Investment Income.");
return;
}
if (isNaN(numChildren) || numChildren 3) {
alert("Please enter a valid number of children (0 to 3).");
return;
}
if (isNaN(filingStatus)) {
alert("Please select a Filing Status.");
return;
}
// — IRS Limits (Approximate for 2023/2024 – these change yearly) —
// These are simplified maximums. The actual calculation involves phase-in and phase-out percentages.
// The credit is calculated as the LESSER of:
// 1. A percentage of earned income up to a certain point.
// 2. A maximum credit amount determined by filing status and number of children.
// Then, the credit is reduced if income exceeds certain thresholds.
// This simplified calculator focuses on illustrating the concept and the impact of inputs.
// A true EITC calculator requires detailed IRS tables for specific percentages and phase-out thresholds.
var EITC_MAX_NO_CHILDREN = { single: 5920, mf: 6570 }; // Example for 2023
var EITC_MAX_ONE_CHILD = { single: 3280, mf: 3730 }; // Example for 2023
var EITC_MAX_TWO_CHILDREN = { single: 5460, mf: 5920 }; // Example for 2023
var EITC_MAX_THREE_CHILDREN = { single: 6935, mf: 7510 }; // Example for 2023
var EARNED_INCOME_LIMIT_NO_CHILDREN = { single: 17640, mf: 24210 }; // Example for 2023
var EARNED_INCOME_LIMIT_ONE_CHILD = { single: 43600, mf: 50162 }; // Example for 2023
var EARNED_INCOME_LIMIT_TWO_CHILDREN = { single: 49399, mf: 56838 }; // Example for 2023 (Note: slight difference in source data, using general ranges)
var EARNED_INCOME_LIMIT_THREE_CHILDREN = { single: 53057, mf: 59187 }; // Example for 2023
var INVESTMENT_INCOME_LIMIT_2023 = 11000;
var INVESTMENT_INCOME_LIMIT_2024 = 11160; // For context, though we'll primarily use 2023 illustrative
var estimatedEITC = 0;
var eligibilityMessage = "";
var isEligible = true;
// — Basic Eligibility Checks —
if (investmentIncome > INVESTMENT_INCOME_LIMIT_2023) {
isEligible = false;
eligibilityMessage = "Not eligible: Investment income exceeds the limit.";
}
if (isEligible) {
var maxIncomeLimit = 0;
var maxCreditAmount = 0;
var isMarried = (filingStatus === 2); // 2 = Married Filing Jointly
// Determine max income and credit based on children and filing status
switch (numChildren) {
case 0:
maxIncomeLimit = isMarried ? EARNED_INCOME_LIMIT_NO_CHILDREN.mf : EARNED_INCOME_LIMIT_NO_CHILDREN.single;
maxCreditAmount = isMarried ? EITC_MAX_NO_CHILDREN.mf : EITC_MAX_NO_CHILDREN.single;
break;
case 1:
maxIncomeLimit = isMarried ? EARNED_INCOME_LIMIT_ONE_CHILD.mf : EARNED_INCOME_LIMIT_ONE_CHILD.single;
maxCreditAmount = isMarried ? EITC_MAX_ONE_CHILD.mf : EITC_MAX_ONE_CHILD.single;
break;
case 2:
maxIncomeLimit = isMarried ? EARNED_INCOME_LIMIT_TWO_CHILDREN.mf : EARNED_INCOME_LIMIT_TWO_CHILDREN.single;
maxCreditAmount = isMarried ? EITC_MAX_TWO_CHILDREN.mf : EITC_MAX_TWO_CHILDREN.single;
break;
default: // 3 or more
maxIncomeLimit = isMarried ? EARNED_INCOME_LIMIT_THREE_CHILDREN.mf : EARNED_INCOME_LIMIT_THREE_CHILDREN.single;
maxCreditAmount = isMarried ? EITC_MAX_THREE_CHILDREN.mf : EITC_MAX_THREE_CHILDREN.single;
break;
}
// — Simplified Calculation Approach —
// This is a highly simplified representation. Real calculation involves:
// 1. Calculating the credit based on earned income up to a certain base amount (phase-in).
// 2. Capping this at the max credit amount.
// 3. Reducing the credit as earned income increases beyond a certain point (phase-out).
// For simplicity here, we'll illustrate the impact of income levels.
// We'll assume earned income is the primary driver for the credit before phase-out.
// The actual calculation percentages are crucial and vary significantly.
var earnedIncomeForCreditCalc = Math.min(earnedIncome, maxIncomeLimit); // Don't calculate credit beyond the income limit threshold
// Crude simulation: assume credit scales roughly with income towards the max, then phases out.
// This is NOT IRS accurate but illustrates concept.
var calculatedPotentialCredit = 0;
if (earnedIncome maxIncomeLimit) {
estimatedEITC = 0;
eligibilityMessage = "Income exceeds the maximum threshold for EITC.";
isEligible = false;
} else {
estimatedEITC = calculatedPotentialCredit;
eligibilityMessage = "Likely eligible based on provided information.";
}
// Special case: Married Filing Separately generally cannot claim EITC unless specific conditions met (e.g., lived apart from spouse)
if (filingStatus === 1) { // Married Filing Separately
isEligible = false;
estimatedEITC = 0;
eligibilityMessage = "Married Filing Separately usually does not qualify for EITC unless specific conditions apply (e.g., lived apart from spouse).";
}
}
// — Display Results —
var resultValueElement = document.getElementById("result-value");
var eligibilityStatusElement = document.getElementById("eligibilityStatus");
if (!isEligible) {
resultValueElement.style.color = "#dc3545"; // Red for not eligible
resultValueElement.innerHTML = "$0";
eligibilityStatusElement.innerHTML = eligibilityMessage;
eligibilityStatusElement.style.color = "#dc3545";
} else {
resultValueElement.style.color = "#28a745"; // Green for estimated credit
// Format to two decimal places
resultValueElement.innerHTML = "$" + estimatedEITC.toFixed(2);
eligibilityStatusElement.innerHTML = eligibilityMessage;
eligibilityStatusElement.style.color = "#28a745";
}
// Update info based on inputs
updateEITCInfo();
}
// Function to update informational text based on inputs
function updateEITCInfo() {
var numChildren = parseInt(document.getElementById("numChildren").value);
var filingStatus = parseInt(document.getElementById("filingStatus").value);
var investmentIncome = parseFloat(document.getElementById("investmentIncome").value);
var disclaimerInvestment = document.querySelectorAll('.disclaimer')[0]; // First disclaimer for investment income
var disclaimerChildren = document.querySelectorAll('.disclaimer')[1]; // Second disclaimer for children
// Update investment income disclaimer based on year context if needed (using 2023/2024 as example)
disclaimerInvestment.innerHTML = "For 2023, investment income must be $11,000 or less to qualify for EITC. For 2024, this limit is $11,160.";
// Update children disclaimer
disclaimerChildren.innerHTML = "Enter 0 if you do not have qualifying children. Maximum of 3 recognized for calculation.";
// Potentially update other descriptive texts based on inputs if needed
}
// Initial calculation on load
window.onload = function() {
updateEITCInfo(); // Ensure info is up-to-date on load
calculateEITC(); // Perform an initial calculation if inputs have default values
};