Use this calculator to estimate your potential Earned Income Tax Credit (EITC) for the current tax year. The EITC is a refundable tax credit for low-to-moderate income working individuals and families.
Single
Married Filing Jointly
Head of Household
Qualifying Widow(er)
Estimated EITC:
$0
This calculator provides an *estimate* only. Actual EITC may vary. Consult IRS Publication 596 and tax professional for definitive guidance.
Understanding the Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is a significant tax benefit for low-to-moderate income working individuals and families in the United States. It is designed to supplement earnings and help offset the burden of living expenses. Unlike many tax credits, the EITC is refundable, meaning that if the credit is larger than the amount of tax you owe, you can get the difference back as a refund.
Who Qualifies for the EITC?
To qualify for the EITC, you must meet several requirements:
Earned Income: You must have earned income during the tax year. This includes wages, salaries, tips, and other taxable employee compensation. Self-employment income also counts.
Investment Income Limit: Your investment income must not exceed a certain limit (e.g., $11,000 for 2023).
Valid Social Security Number: You, your spouse (if filing jointly), and any qualifying children must have valid Social Security numbers.
Residency: You must be a U.S. citizen or resident alien for the entire tax year.
Filing Status: You generally cannot file as Married Filing Separately, though there are exceptions for certain spouses living apart.
Relationship and Age Rules for Dependents: If claiming the credit with qualifying children, the children must meet specific relationship, age, residency, and joint return tests.
How is the EITC Calculated?
The calculation of the EITC is complex and depends on several factors:
Earned Income: The more earned income you have, the higher your potential credit, up to a certain point.
Adjusted Gross Income (AGI): Your AGI must be below a certain threshold.
Number of Qualifying Children: The credit amount increases with the number of qualifying children, up to three. The maximum credit is generally for taxpayers with three or more qualifying children.
Filing Status: The income phase-out thresholds differ based on filing status.
The credit is calculated based on tax tables provided by the IRS, which are updated annually. The core principle is that the credit increases with earned income up to a certain point, then gradually phases out as income continues to rise.
Simplified Calculation Logic (Illustrative):
While the exact IRS tables are proprietary and detailed, the general idea behind the EITC calculation can be understood as follows:
Determine Maximum Credit: The IRS sets maximum credit amounts for different numbers of qualifying children. For example, for 2023, these were approximately:
0 Children: $600
1 Child: $3,995
2 Children: $6,604
3+ Children: $7,430
Apply Income Phase-out: The credit amount starts to decrease once your income (Earned Income or AGI, whichever is higher) exceeds a certain threshold. This threshold also varies by the number of children and filing status.
Calculate Phase-out Rate: The credit is reduced by a certain percentage (phase-out rate) for each dollar earned above the initial threshold.
Example: For 2023, a single filer with one qualifying child might have an EITC that phases out starting at an AGI of around $17,640 and phases out completely at an AGI of around $59,187. The exact credit amount within this range is determined by IRS tables, not a simple linear formula.
Why Use an EITC Calculator?
Calculating the EITC precisely can be challenging due to its complex rules and the specific tax tables used by the IRS. An online calculator like this one simplifies the process by:
Estimating Your Credit: Providing a quick estimate of the potential EITC amount you may be eligible for.
Identifying Eligibility Factors: Helping you understand which factors (income, dependents, filing status) influence your credit.
Encouraging Tax Filing: Highlighting a significant benefit that many eligible individuals miss out on by not filing a tax return.
Important Note: This calculator uses simplified estimations based on general EITC rules. For the most accurate calculation and to claim your credit, you must file a federal tax return. Consider using tax preparation software or consulting a qualified tax professional.
function calculateEITC() {
// Get input values
var income = parseFloat(document.getElementById("income").value);
var numDependents = parseInt(document.getElementById("numDependents").value);
var filingStatus = document.getElementById("filingStatus").value;
var adjustedGrossIncome = parseFloat(document.getElementById("adjustedGrossIncome").value);
var investmentIncome = parseFloat(document.getElementById("investmentIncome").value);
// — Input Validation —
if (isNaN(income) || income < 0) {
alert("Please enter a valid earned income.");
return;
}
if (isNaN(numDependents) || numDependents < 0) {
alert("Please enter a valid number of qualifying children.");
return;
}
if (isNaN(adjustedGrossIncome) || adjustedGrossIncome < 0) {
alert("Please enter a valid Adjusted Gross Income (AGI).");
return;
}
if (isNaN(investmentIncome) || investmentIncome investmentIncomeLimit) {
document.getElementById("result-value").textContent = "$0";
document.getElementById("result-explanation").textContent = "Your investment income exceeds the limit for EITC eligibility.";
return;
}
// Determine the relevant income for phase-out calculation
var relevantIncome = Math.max(income, adjustedGrossIncome);
var calculatedEITC = 0;
// Check if income is below the start of phase-out range (or within phase-in for 0 dependents)
if (relevantIncome = phaseOutStart && relevantIncome <= phaseOutEnd) {
// Income is within the phase-out range
var phaseOutAmount = (relevantIncome – phaseOutStart) * phaseOutRate;
calculatedEITC = baseCredit – phaseOutAmount;
} else {
// Income is above the phase-out end, no credit
calculatedEITC = 0;
}
// Ensure credit is not negative and not greater than the base credit
calculatedEITC = Math.max(0, calculatedEITC);
calculatedEITC = Math.min(calculatedEITC, baseCredit); // Cannot be more than the max for dependents
// Round to two decimal places
calculatedEITC = Math.round(calculatedEITC * 100) / 100;
var resultDisplay = "$" + calculatedEITC.toFixed(2);
document.getElementById("result-value").textContent = resultDisplay;
// Explanation
var explanation = "";
if (calculatedEITC === 0) {
explanation = "Based on the provided information, you may not be eligible for the EITC. Eligibility depends on various factors including income limits, residency, and dependent status. Please consult IRS Publication 596 or a tax professional.";
} else {
explanation = "This is an estimated EITC amount. Your actual credit may differ. Eligibility criteria and credit amounts are subject to change annually by the IRS.";
}
document.getElementById("result-explanation").textContent = explanation;
}