Earned income credit 2026: maximum $664 to $8,231 by number of children, and what changed from 2025

EITC 2026 maximum by number of children

The earned income credit 2026 amounts were fixed by the IRS in Rev. Proc. 2025-32 on October 9, 2025. They cover income earned from January 1 to December 31, 2026, and you claim them on the return you file in the 2027 season.

The jump from no children to one child is the largest step, about $3,760. Going from two to three children adds only $915, because the third child raises the credit rate from 40% to 45% but uses the same $18,290 earned income amount. A fourth or fifth child adds nothing further.

Each maximum is simply the credit rate times the earned income amount, rounded. For one child that is 34% of $13,020; for no children it is 7.65% of $8,680. The same rates appear in section 32 of the tax code every year; only the dollar amounts are indexed.

Did the EITC go up for 2026?

Yes, but only by the inflation adjustment. No law passed in 2025 changed the credit rates, the age limits or the qualifying child rules. The dollar figures rose by roughly 2.3% across the board.

The income limits moved by similar small steps. A married couple with three children could have income just under $68,675 and still get something in 2025; for 2026 the ceiling is $70,244. The complete grid for both years is in our EITC income limits table.

Because the increase is small, a family whose income rose with a 3% or 4% raise may still see a lower credit in 2026 if they are in the phaseout range. The raise pushes them further along the declining part of the curve faster than the thresholds moved.

EITC 2026 investment income limit

For 2026, your investment income must be $12,200 or less. In 2025 the limit was $11,950. This test is a cliff, not a phaseout: $12,201 of investment income removes the entire credit.

Investment income for this test includes taxable and tax-exempt interest, dividends, net capital gains, net rental and royalty income, and net passive activity income. Money in a savings account rarely reaches the limit. It is more often triggered by selling a stock or a rental property at a gain.

If a sale in late 2026 would push you over, the timing of that sale can decide whether you keep a credit worth thousands of dollars. Check the total before you sell, not after.

Earned income credit 2026 chart: three example incomes

These examples use the 2026 formula for a head of household with one qualifying child whose AGI equals earned income. Results are rounded to the dollar; the IRS table in the Form 1040 instructions works in $50 bands and may differ by a few dollars.

The same $40,000 of pay with two children produces a larger credit: $7,316 minus 21.06% of $16,110, or about $3,923. For a joint return the phaseout would start at $31,160 instead of $23,890, which adds roughly $1,160 to the one-child figure at $40,000.

To test your own numbers, use our earned income credit calculator, which walks through the same three stages.

Claiming the 2026 credit in 2027

1. Collect your 2026 Forms W-2, any 1099-NEC or 1099-K for side work, and records of self-employment expenses.
2. Confirm each child's Social Security number and the months they lived with you in 2026.
3. File Form 1040 or 1040-SR and complete Schedule EIC for each qualifying child.
4. Expect the refund no earlier than mid-February, because the law bars the IRS from releasing EITC refunds before then.

The EITC stacks with the child tax credit, which is $2,200 per child for 2026 with up to $1,700 refundable. Our page on the child tax credit 2026 amount shows how that credit is figured on the same return. For the full list of EITC eligibility rules, start from the earned income credit guide.