Earned Income and Earned Income Tax Credit (EITC) Tables
The EITC is a refundable tax credit for low- to moderate-income workers and families with children. EITC Tables help determine your eligibility and credit amount based on your income, filing status, and qualifying children.
What is the EITC?
- A refundable credit, meaning it can reduce your tax bill to zero and even provide a refund.
- Designed to help offset payroll taxes paid on earned income.
- Eligibility based on income, filing status, and qualifying children.
What are EITC Tables?
- IRS-published tables used to determine your EITC amount.
- Different tables for different filing statuses and numbers of qualifying children.
- Based on your earned income (wages, self-employment income, etc.).
Benefits of using EITC Tables:
- Easy and convenient way to estimate your EITC.
- Free and readily available on the IRS website.
- No need for complex calculations or software.
How to use EITC Tables?
Step 1: Determine your filing status: Single, married filing jointly, head of household, or qualifying widow(er).
Step 2: Count your qualifying children: Under 19, U.S. citizen/resident, lived with you for more than half the year.
Step 3: Find your earned income: Wages, salaries, self-employment income, and certain military pay.
Step 4: Locate the appropriate table: Matches your filing status and number of children.
Step 5: Find your income range: Locate the income range closest to your earned income.
Step 6: Read the corresponding credit amount: This is your estimated EITC.