Earned Income Tax Credit (EITC) Calculator
Estimate your 2024 Earned Income Tax Credit based on your income, filing status, and qualifying children. The EITC is one of the largest federal tax credits available to working families.
How the EITC Works
The Earned Income Tax Credit is a refundable federal tax credit designed to supplement wages for low-to-moderate income workers. Unlike most tax credits, the EITC is refundable—if the credit exceeds your tax liability, you receive the difference as a refund. For a single parent with two children earning $25,000, the EITC can be worth over $7,000, making it one of the most impactful anti-poverty programs in the United States.
The credit has three phases: a phase-in where the credit increases as you earn more (at rates from 7.65% to 45% depending on children), a plateau where you receive the maximum credit, and a phase-out where the credit gradually decreases until it reaches zero. Understanding where your income falls on this curve is essential for tax planning.
EITC After Divorce
Divorce can significantly affect your EITC eligibility and amount. If you were previously a higher-earning spouse filing jointly, your post-divorce individual income may now qualify you for the credit. Conversely, if you were the lower earner, your filing status change and loss of combined household income may increase your credit.
Key considerations for divorced parents: only the custodial parent (the one with whom the child lives more than half the year) can claim the EITC for that child, even if the other parent claims the dependency exemption through Form 8332. The EITC cannot be split between parents for the same child.
Related Calculators
- Tax Filing Status Calculator — Compare filing statuses after divorce
- Divorce Tax Planning Calculator — Optimize your divorce year taxes
- Single Parent Budget Calculator — Plan your post-divorce budget
- Child Support Calculator — Estimate support payments