How this calculator works
Tax year: 2026, United States. The credit first rises with earned income at a fixed rate until it reaches the maximum for the number of qualifying children. It then stays at that maximum until the phase-out threshold, and falls at a fixed rate on the greater of adjusted gross income or earned income until it reaches zero. The 2026 maximum is $664 with no qualifying children, $4,427 with one, $7,316 with two and $8,231 with three or more. A joint return has a higher phase-out threshold. No credit is allowed when investment income exceeds $12,200. Married filing separately is generally excluded; the special rule for separated spouses is not modelled. The model leaves out the qualifying child and relative tests, the age, residency and dependency rules, the substantial gainful activity rule in the federal benefit phase-out, the prior-year income election, the exact rounding in the IRS EITC tables and state earned income credits.
Formula
Phase-in credit = min(maximum credit, phase-in rate x earned income). Phase-out amount = phase-out rate x max(0, max(adjusted gross income, earned income) - phase-out threshold). Credit = max(0, phase-in credit - phase-out amount), or zero if investment income exceeds $12,200. The phase-in rates are 7.65%, 34%, 40% and 45% for none, one, two and three or more children. The phase-out rates are 7.65%, 15.98%, 21.06% and 21.06%.
Worked example
A single filer with one child, $30,000 of earned income, $30,000 of adjusted gross income and no investment income has a phase-in credit of $4,427. Income is $6,110 above the $23,890 threshold, so the phase-out removes 15.98% of $6,110, which is $976.38. The credit is $3,450.62.
Frequently asked questions
Can a worker with no children claim the credit?
Yes. The 2026 maximum for a filer with no qualifying children is $664. Age, residency and dependency rules still apply, and they are not checked here.
Why is the credit below the maximum?
The credit phases in with earned income below the earned income amount and phases out above the threshold. Only income between those points receives the full amount.
How does investment income affect the credit?
If investment income is more than $12,200 for 2026, no credit is allowed at all. The calculator returns zero in that case.
Can a married couple filing separately claim it?
Generally no. A special rule allows some separated spouses to claim it, but that rule is not modelled, so the calculator offers only single, joint and head of household statuses.