Q:

How do you read the earned income table?

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Quick Answer

The Earned Income Tax Credit table shows the maximum income a tax filer can earn to receive the credit depending on his filing status and number of children, according to the Internal Revenue Service's website. The income limits for 2015 vary from $14,820 for single people and heads of household without children to $53,267 for married filers with three or more children. Maximum credits vary by the number of children in a household and range from $503 to $6,242.

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Full Answer

The Earned Income Tax Credit is a refundable credit paid to low and moderate income people who have earned income from working, according to the Center on Budget and Policy Priorities. The credit gradually increases with income and then decreases as the tax filer's income approaches the credit income limit. For example, married filers with more than two children receive credits of 45 cents back for every dollar of earned income up to $13,870 and a maximum credit of $6,242. The credit for married filers with more than two children decreases slowly once income exceeds $23,630 until it phases out entirely at the Earned Income Tax Credit income limit at $53,267.

The rate of the credit paid is 40 cents on the dollar for families with two children and 34 cents for families with one child, states the Center on Budget and Policy Priorities. Filers without children are eligible for a significantly smaller maximum credit of $503.

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