Earned income credit table – calculating your EIC

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 .

See also:

Are you eligible for the earned income credit?

Who can be claimed as a qualifying child?

2010 EIC Table

2011 EIC Table

Earned Income Tax Credit Calculator

Updated 11/12/2012