Q:

How do you calculate your EITC?

A:

Quick Answer

Tax filers can calculate their federal Earned Income Tax Credit by consulting the limits for earned income provided by the Internal Revenue Service on its website and the rates at which credits phase in and out published by the Center on Budget and Policy Priorities. For tax year 2015, the maximum possible Earned Income Tax Credit is $6,242 and people with incomes as high as $53,267 may be eligible for the credit.

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Full Answer

The Earned Income Tax Credit is a refundable credit for low and moderate income people, according to the Center on Budget and Policy Priorities. Filers with more than two children are eligible for the highest tax credit, which phases in at 45 cents per dollar of earned income up to a limit of $6,242. For married filers with three or more children, the credit begins to phase out on income over $23,630 and ends completely for income over the limit of $53,267. People without children are eligible for Earned Income Tax Credits at a rate of 7.65 cents per dollar of earned income up to a limit of $503. The credit phases in at 34 and 40 cents per dollar of earned income for families with one or two children respectively. The maximum credit for filers with one child is $3,359 and $5,548 for filers with two children.

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