The Earned Revenue Tax Credit score (EITC) is a refundable tax credit score designed partially to cut back the tax burden on low-income people and households each with and with out kids.
As a completely refundable credit score, if the quantity of tax you owe is lower than the credit score quantity you qualify for, it is possible for you to to obtain the distinction as a tax refund.
For tax yr 2022, the utmost credit score is $6,935. Your ultimate credit score quantity is decided by your submitting standing, earnings, and the variety of qualifying kids a taxpayer claims on their tax return.
Earned earnings consists of all taxable earnings and customarily consists of wages, suggestions, and internet earnings from self-employment.
Earned Revenue Tax Credit score calculator directions
Step 1: Choose your tax yr
Step 2: Choose your tax submitting standing
Step 3: Enter your earnings
Step 4: Choose your qualifying kids
Step 5: Choose your age on the finish of the final tax yr
Notice: For tax yr 2021, you possibly can elect to make use of your 2019 earned earnings to calculate your Earned Revenue Credit score, however provided that your 2019 earnings was larger than your 2021 earnings.
Steadily requested questions
Can I qualify with no kids?
Sure! This credit score is now accessible to working adults aged 24 or older, no matter whether or not they have kids.
Along with the same old earnings necessities, you typically should additionally meet the next standards:
- You could have lived in the US for greater than six months out of the tax yr.
- You can’t be claimed as a depending on another person’s tax return.
Are there age limits to qualify for the Earned Revenue Tax Credit score?
There may be not a most age restrict to say this tax credit score as of 2021, however filers should meet the next minimal age necessities relying in your scenario:
- You have to be at the very least 24 if you happen to had been a pupil for at the very least 5 months in 2021
- You have to be at the very least 18 if you happen to had been in foster care any time after turning 14 or if you’re a certified homeless youth
- You have to be at the very least 19 in all different circumstances
What are the EITC earnings limits for 2022?
For tax yr 2022, your earned earnings and adjusted gross earnings (AGI) should each fall inside the following thresholds:
Variety of Kids | 0 | 1 | 2 | 3+ |
Max Earned Revenue Credit score | $560 | $3,733 | $6,164 | $6,935 |
Max Revenue (single or head of family) | $16,480 | $43,492 | $49,399 | $53,057 |
Max Revenue (married submitting collectively) | $22,610 | $49,622 | $55,529 | $59,187 |
Funding earnings restrict
For 2021, the IRS elevated its restrict for funding earnings to additional enhance eligibility for the credit score — now you can qualify for the Earned Revenue Credit score in case your earnings from capital positive aspects and every other funding earnings doesn’t exceed $10,000.
Most credit score quantities
The utmost quantity of credit score for tax yr 2021 is:
- $6,935 with three or extra qualifying kids
- $6,164 with two qualifying kids
- $3,733 with one qualifying baby
- $560 with no qualifying kids
For tax yr 2022, your earned earnings and AGI should every be lower than:
Variety of Kids | 0 | 1 | 2 | 3+ |
Max Earned Revenue Credit score | $560 | $3,733 | $6,164 | $6,935 |
Max Revenue (single or head of family) | $16,480 | $43,492 | $49,399 | $53,057 |
Max Revenue (married submitting collectively) | $22,610 | $49,622 | $55,529 | $59,187 |
We’re right here to assist
As all the time, TaxAct® is right here to assist taxpayers take pleasure in a better, extra assured submitting expertise. Once you securely e-file with us, we may also help you declare the max Earned Revenue Credit score you qualify to obtain. Our step-by-step course of guides you thru your federal and state returns at a tempo that’s best for you and offers you useful suggestions tailor-made to your distinctive tax scenario. Get began totally free right now!