The Earned Income Credit (EIC) is a tax credit available to many American families.
You can use the EIC earned income credit calculator to see how much of a credit you qualify for. Once you have your estimated amount for the (EITC) , you are then able to use the tax software and claim your estimated credit amount.
Online tax calculators are perfect for estimating your earned income credit. If you have never used the software before it will take a few moments for you to go in and create an account. However, an additional benefit of signing up now to estimate your credit is when tax season kicks off you will be able to file your taxes and claim this valuable tax credit.
As you can see, the (EITC) is a generous tax credit you don’t want to miss out on. If you find out that you qualify for earned income credit, then it is possible you will also qualify for free tax filing as well.
Changes to the Earned Income Credit
The Earned Income Tax Credit (EITC or EIC) has some changes implemented in 2016. The credit has increased for joint filing taxpayers with three or more qualifying children. This change is a $27 increase from the previous Earned Income Tax Credit.
The calculation of the earned income amount has not changed much. See the Earned Income Tax Credit table or calculator below to see the maximum amount of the EITC allowed.
The EITC is not a fixed amount. It varies for each taxpayer, and that is why it’s important to view the updated Earned Income Tax Credit table. The EIC calculator helps eligible tax filers estimate how much credit they will receive on their tax return.
The credit could cancel out any additional tax liabilities to the IRS. Not owing the IRS may also leave the taxpayer a significant income tax refund because of the Earned Income Tax Credit. Since there are minor changes to the EIC, tax filers should not solely depend on receiving the amount they did prior years to. The refund size could be different.
The tax table identifies the current tax year 2016’s maximum credit amounts and earned income limits per qualifying child. Tax filers can use this table to file their own taxes or verify their tax paperwork was prepared accurately and were given all applicable EIC credits.
2016 Earned Income Credit Table
|Number of Qualifying Children|
|Earned Income Limit||$9,920||$13,930||$13,930||$6,610|
|Maximum Credit Amounts||$3,373||$5,572||$6,269||$506|
|Earned Income and AGI Limits (Single, Head of Household, or Surviving Spouse)||$18,190||$18,190||$18,190||$8,270|
|Earned Income and AGI Limits (Single, Head of Household, Surviving Spouse)||$39,296||$44,648||$47,955||$14,880|
|Earned Income and AGI Limits (Married Filing Jointly)||$23,740||$23,740||$23,740||$13,820|
|Earned Income and AGI Limits (Married Filing Jointly)||$44,846||$50,198||$53,505||$20,430|
The 2016 Earned Income Tax Credit still proves that tax filers will depend on this credit. This table is here to provide an estimate of their credit of the tax-filing year 2016.
The earned income credit calculator will also help you determine the amount you will get back on your taxes.