The Earned Income Tax Credit (EITC) is one of the largest anti-poverty programs in the United States and one of the most valuable credits for low- and moderate-income workers. Because it is fully refundable, it can put cash in your pocket even if you owe no federal income tax. For 2026 the maximum credit rises to $8,231 for families with three or more qualifying children. This article explains the 2026 amounts, the income limits, who qualifies, and how to claim it. Every figure below comes from IRS Revenue Procedure 2025-32 (Internal Revenue Bulletin 2025-45) and IRS Publication 596. (Internal Revenue Service)
2026 EITC maximum credit amounts
The maximum credit depends on how many qualifying children you have (IRS Rev. Proc. 2025-32, section 32(b)):
| Qualifying children | 2026 maximum credit | Up from 2025 |
|---|---|---|
| None (childless workers) | $664 | $649 |
| 1 child | $4,427 | $4,328 |
| 2 children | $7,316 | $7,152 |
| 3 or more children | $8,231 | $8,046 |
The IRS also highlighted the $8,231 top figure in its 2026 inflation-adjustments news release. The amounts rise each year with inflation. (Internal Revenue Service)
How the credit is calculated
The EITC has three zones:
- Phase-in — as earned income rises from zero, the credit grows at a fixed rate (the phase-in rate) until it reaches the maximum.
- Plateau — the credit stays at the maximum across a range of income.
- Phase-out — above a threshold, the credit shrinks until it hits zero.
The phase-in rates are 7.65% (no children), 34% (one child), 40% (two children), and 45% (three or more). The phase-out rates are 7.65% (no children), 15.98% (one child), and 21.06% (two or three or more children). (Internal Revenue Service)
2026 income limits
Your adjusted gross income (AGI) and your earned income must both be below the completed phase-out amount for your filing status and family size. (Internal Revenue Service)
Single, head of household, or qualifying surviving spouse
| Children | Max credit | Earned income amount | Phase-out begins | Phase-out ends (credit = $0) |
|---|---|---|---|---|
| None | $664 | $8,680 | $10,860 | $19,540 |
| 1 | $4,427 | $13,020 | $23,890 | $51,593 |
| 2 | $7,316 | $18,290 | $23,890 | $58,629 |
| 3+ | $8,231 | $18,290 | $23,890 | $62,974 |
Married filing jointly
| Children | Max credit | Earned income amount | Phase-out begins | Phase-out ends (credit = $0) |
|---|---|---|---|---|
| None | $664 | $8,680 | $18,140 | $26,820 |
| 1 | $4,427 | $13,020 | $31,160 | $58,863 |
| 2 | $7,316 | $18,290 | $31,160 | $65,899 |
| 3+ | $8,231 | $18,290 | $31,160 | $70,244 |
The married-filing-jointly thresholds are higher because of the statutory marriage-penalty adjustment in section 32(b)(2)(B). (Internal Revenue Service)
The investment income limit
Regardless of how much you earn from work, you are disqualified if your investment income exceeds $12,200 in 2026 (IRS Rev. Proc. 2025-32). Investment income includes interest, dividends, capital gains, and royalties. This is a hard cutoff: one dollar over the limit wipes out the entire credit. The limit is up from $11,950 in 2025.
Who qualifies
To claim the EITC you must:
- Have earned income from a job, self-employment, or certain disability payments
- Have AGI and earned income below the phase-out limits above
- Be a U.S. citizen or resident alien for the whole year
- Not file as married filing separately
- Have a valid Social Security number (you and any qualifying children)
- Not be claimed as a dependent on someone else's return
- If claiming with no qualifying child, be at least 25 and under 65 at the end of 2026
What counts as earned income
Earned income includes wages, salaries, and tips on your W-2, plus net self-employment earnings on Schedule C or Schedule SE. Union strike benefits and certain disability payments received before minimum retirement age also count. Social Security, unemployment, child support, alimony, interest, dividends, pensions, and annuities do not count. Military members with nontaxable combat pay (W-2 box 12, code Q) may choose to include that pay as earned income, which can increase the credit. (Internal Revenue Service)
Qualifying child rules
A qualifying child for EITC purposes must meet four tests:
- Age — under 19 at year end, or under 24 if a full-time student for at least five months, or any age if permanently and totally disabled
- Relationship — your child, stepchild, eligible foster child, sibling, or a descendant
- Residency — lived with you in the United States for more than half the year
- Joint return — did not file a joint return (unless only to claim a refund)
Only one taxpayer can claim the same child. If two people qualify, IRS tie-breaker rules decide who gets the credit. (Internal Revenue Service)
Worked examples
A single parent with one child
A single filer with one child and $20,000 of earned income:
- Earned income is below the $23,890 phase-out begin and above the $13,020 max point
- The credit has reached its plateau, so the maximum $4,427 applies
- Because the EITC is refundable, if the parent owes less than $4,427 in tax, the rest comes back as a refund
A couple with three children
A married couple filing jointly with three children and $40,000 of earned income: (Internal Revenue Service)
- Earned income is between $18,290 and $31,160, so the credit is at its $8,231 maximum
- The full amount is refundable
Near the phase-out
A single filer with two children and AGI of $55,000:
- Phase-out begins at $23,890 and ends at $58,629
- Income is $31,110 into the phase-out zone
- Reduction: 21.06% x $31,110 is about $6,552
- Credit: $7,316 - $6,552 is about $764 (a partial credit remains)
How to claim the EITC
You claim the EITC on Form 1040. If you have a qualifying child, attach Schedule EIC, which collects each child's name, SSN, date of birth, and relationship. The IRS computes the exact amount from its EITC tables in the Form 1040 instructions or Publication 596; most tax software does this automatically. The credit is often claimed on a return even when no tax is owed, which is why many eligible workers must still file. (Internal Revenue Service)
Why many people miss the credit
The IRS estimates a meaningful share of eligible workers do not claim the EITC, often because their income is low enough that they do not think they need to file, or because they are unaware they qualify with no children. If you worked and earned below the phase-out limits, run the numbers before skipping a return. (Internal Revenue Service)
Planning tips for 2026
- Keep earned income documents organized; the credit is calculated from your W-2 and Schedule C, not from a separate application.
- If you are near the investment income limit, remember that a single dollar over $12,200 disqualifies the credit entirely.
- Married couples should compare filing jointly versus married filing separately; most married taxpayers cannot claim the EITC when filing separately.
- Self-employed workers must report net earnings accurately; Schedule SE figures are required even though paying Self-Employment tax does not by itself change the credit.
2026 versus 2025
Every 2026 maximum rose slightly with inflation: the childless credit went from $649 to $664, one-child from $4,328 to $4,427, two-child from $7,152 to $7,316, and three-or-more from $8,046 to $8,231. The investment income limit rose from $11,950 to $12,200. These are the official figures from IRS Revenue Procedure 2025-32. (Internal Revenue Service)
Disclaimer: This article is general educational information, not tax, legal, or investment advice. Dollar amounts come from the 2026 sources listed at the end of this article and may change. Before you act, talk to a licensed CPA, EA, or tax attorney about your own situation.