Different than you might think the Earned income credit table is not just a chart of numbers someone just filled in at random. It sounds this way since it is quite confusing to see all those numbers while you can’t figure out if earning more will give you a larger or smaller credit.
You see, the government wants you to work, if you don’t work and earn
money you don’t get a credit at all. If you work only a little they will
start giving you the credit. But not too much. They want you to put in more hours and
work more, therefore as your income grows they will keep on giving you more and more.
Now once your wages reach a certain high the credit stops increasing, sounds like the IRS thinks that you are earning enough but not too much, because for the next few thousand dollars you will still get the same amount. Finally the government decides "OK you have earned enough" and as your income get larger the credit simply starts becoming less and less until it goes down to zero.
You get 7.65% of your income as your credit if you have no children, 34% with one child, 40% with two children, and 45% with three (or more) children. Once you reach the maximum limit of earned income credit allowed you cannot calculate the EITC by using the above percent anymore because it either stays the same or starts phasing out. At this point the best way to see how much your credit is, is by using a table or calculator.
The earned income credit table has the credit calculated for every amount up to $50,270- in increments of $50-. There is a separate table for married filing joint filers and single filers. The married filing joint table is has a higher income limit and the phase out starts later.
If you find this method of figuring out the credit making you dizzy,
try this simple
earned income credit calculator.
Are you eligible for the earned income credit?
Who can be claimed as a qualifying child?
2010 EIC Table
Can't find what you're looking for? You can search this site here.
Does your state have an earned income tax credit?
to see if your state has the EIC and how to calculate it.
How much will you get for the Child and Dependent Care Credit?
Check out this new calculator, to see how much your credit will be.
For more information or to see if you are eligible see the Child and Dependent Care Credit page.
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