Earned Income Tax Credit (EITC) 2027 Calculator
Estimate your 2027 federal Earned Income Tax Credit (EITC) by family size and filing status. Includes phase-in, plateau, and phase-out math using the inflation-indexed thresholds. Free, refundable credit estimator — private, no sign-up.
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What is the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) is a fully refundable federal tax credit for low- and moderate-income working individuals and families. "Refundable" means if the credit exceeds your tax liability, the IRS sends you a check for the difference — making EITC one of the most effective anti-poverty programs in the U.S. tax code. To qualify, you must have earned income (wages, self-employment, or farm income), a valid Social Security number, U.S. citizenship or resident-alien status, and investment income under the annual limit ($11,950 for 2027).
The credit amount depends on family size, filing status, and earned income. It has three regions: a phase-in region where the credit grows with each dollar of earned income, a plateau where the maximum credit applies, and a phase-out where the credit shrinks back toward zero as income rises. The maximum credit for 2027 ranges from roughly $652 (no kids) to $8,260 (three or more children).
2027 EITC parameters by family size
For tax year 2027 (filed in 2028), the parameters indexed for inflation are approximately: zero qualifying children — phase-in rate 7.65%, max credit $652, complete phase-out around $19,950 single / $26,610 MFJ. One child — phase-in rate 34%, max credit $4,360, phase-out around $50,930 single / $57,590 MFJ. Two children — phase-in rate 40%, max credit $7,200, phase-out around $58,000 single / $64,660 MFJ. Three or more — phase-in rate 45%, max credit $8,260, phase-out around $69,800 single / $76,900 MFJ.
Investment income (interest, dividends, capital gain net income, rental and royalty income net of expenses) must be at or below $11,950 for 2027. Exceeding this limit by even $1 disqualifies the entire credit — a sharp cliff that requires careful planning around capital gains realization, dividend reinvestment, and rental property reporting.
How to maximize your EITC
The EITC is calculated on the greater of earned income or AGI in the phase-out (whichever is worse for you), so be careful about gross income from non-earned sources. Self-employed filers can use Schedule SE half of SE tax as an adjustment, lowering AGI. Married couples must file jointly to claim EITC — separated filers can claim only if they meet specific abandonment rules. The qualifying child rules require age (under 19, or under 24 if a student, or any age if permanently disabled), relationship, residency (more than half the year in your home), and joint return tests.
Beware of the EITC marriage penalty: two single parents each earning $30,000 with one child each may receive much more in combined EITC than the same couple married filing jointly. The American Rescue Plan changes that allowed childless workers ages 19–24 and over 65 to claim EITC expired after 2021 — back to age 25–64 for the childless EITC starting 2022.
Source: irs.gov — Publication 596 (Earned Income Credit). Updated May 2026 reflecting OBBB (P.L. 119-21) inflation indexing for 2027.