Earned Income Credit (EIC) Calculator (2023 Tax Year)
Use this calculator to estimate your potential Earned Income Credit (EIC) for the 2023 tax year. The EIC is a refundable tax credit for low-to-moderate-income working individuals and families. The actual credit amount depends on your income, filing status, and the number of qualifying children.
Understanding the Earned Income Credit (EIC)
The Earned Income Credit (EIC) is a significant tax benefit designed to help low-to-moderate-income working individuals and families. It's a refundable credit, meaning you could receive a refund even if you don't owe any tax.
Who is Eligible for EIC?
Eligibility for the EIC depends on several factors, including:
- Earned Income: You must have earned income from employment or self-employment.
- Adjusted Gross Income (AGI): Your AGI must be below certain thresholds, which vary based on your filing status and the number of qualifying children.
- Filing Status: You cannot use "Married Filing Separately."
- Qualifying Child Rules: If you claim children, they must meet specific age, relationship, and residency tests.
- Investment Income: Your investment income must be below a certain limit (e.g., $11,000 for 2023).
- Social Security Number: You, your spouse (if filing jointly), and any qualifying children must have valid Social Security Numbers.
How the EIC is Calculated
The EIC calculation is based on a tiered system that considers your earned income, AGI, filing status, and the number of qualifying children. Generally, the credit:
- Phases In: As your earned income increases from $1, the credit amount grows.
- Reaches a Maximum: The credit reaches a maximum amount for a specific income range.
- Phases Out: Once your income (AGI or earned income, whichever is greater) exceeds a certain threshold, the credit gradually decreases until it reaches zero.
The maximum credit amounts and income thresholds are updated annually by the IRS. Our calculator uses the 2023 tax year rules for its estimations.
Important Considerations
- This calculator provides an estimate based on the information you provide and the 2023 tax rules. It is not tax advice.
- Many complex rules apply to EIC eligibility, especially concerning qualifying children. Consult IRS Publication 596, "Earned Income Credit (EIC)," or a qualified tax professional for definitive guidance.
- Always keep accurate records of your income and expenses.
Example Scenarios (2023 Tax Year)
Here are a few examples to illustrate how the EIC might be calculated:
Example 1: Single with 1 Child
- Filing Status: Single
- Qualifying Children: 1
- Earned Income: $15,000
- Adjusted Gross Income (AGI): $15,000
- Investment Income: $100
- Estimated EIC: Using the 2023 rules for a single filer with one child, an earned income of $15,000 falls within the phase-in range. The credit would be calculated as $15,000 * 34% = $5,100. However, the maximum credit for one child is $3,995. Since $15,000 is below the phase-out start ($21,590), the estimated EIC would be $3,995.00.
Example 2: Married Filing Jointly with 2 Children
- Filing Status: Married Filing Jointly
- Qualifying Children: 2
- Earned Income: $40,000
- Adjusted Gross Income (AGI): $40,000
- Investment Income: $500
- Estimated EIC: For married filers with two children, the maximum credit is $6,604. The phase-out starts at $28,210. With an AGI of $40,000, the credit is in the phase-out range. The phase-out rate is $6,604 / ($59,180 – $28,210) ≈ 0.21327. The reduction would be ($40,000 – $28,210) * 0.21327 ≈ $2,513.56. The estimated EIC would be $6,604 – $2,513.56 = $4,090.44.
Example 3: Single with No Children
- Filing Status: Single
- Qualifying Children: 0
- Earned Income: $10,000
- Adjusted Gross Income (AGI): $10,000
- Investment Income: $0
- Estimated EIC: For a single filer with no children, the maximum credit is $600. The phase-out starts at $8,270. With an AGI of $10,000, the credit is in the phase-out range. The phase-out rate is $600 / ($17,640 – $8,270) ≈ 0.06403. The reduction would be ($10,000 – $8,270) * 0.06403 ≈ $110.78. The estimated EIC would be $600 – $110.78 = $489.22.
.calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 700px;
margin: 20px auto;
padding: 25px;
background: #f9f9f9;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
border: 1px solid #e0e0e0;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
font-size: 1.8em;
}
.calculator-container h3 {
color: #444;
margin-top: 25px;
margin-bottom: 15px;
font-size: 1.4em;
}
.calculator-container p {
line-height: 1.6;
color: #555;
margin-bottom: 10px;
}
.calculator-form .form-group {
margin-bottom: 18px;
display: flex;
flex-direction: column;
}
.calculator-form label {
margin-bottom: 8px;
font-weight: bold;
color: #333;
font-size: 0.95em;
}
.calculator-form input[type="number"],
.calculator-form select {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px;
box-sizing: border-box;
font-size: 1em;
color: #333;
}
.calculator-form input[type="radio"] {
margin-right: 8px;
}
.calculator-form #filingStatus label {
font-weight: normal;
display: inline-block;
margin-right: 15px;
}
.calculator-form button {
background-color: #007bff;
color: white;
padding: 12px 20px;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 1.1em;
width: 100%;
box-sizing: border-box;
transition: background-color 0.3s ease;
margin-top: 15px;
}
.calculator-form button:hover {
background-color: #0056b3;
}
.result-container {
margin-top: 25px;
padding: 15px;
background-color: #e9f7ef;
border: 1px solid #d4edda;
border-radius: 8px;
text-align: center;
}
.result-container h3 {
color: #28a745;
margin-top: 0;
font-size: 1.5em;
}
.result-container p {
font-size: 2em;
font-weight: bold;
color: #28a745;
margin: 0;
}
.calculator-article {
margin-top: 30px;
padding-top: 20px;
border-top: 1px solid #eee;
}
.calculator-article ul {
list-style-type: disc;
margin-left: 20px;
color: #555;
}
.calculator-article ol {
list-style-type: decimal;
margin-left: 20px;
color: #555;
}
.calculator-article li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.calculator-container {
padding: 15px;
}
.calculator-form label {
font-size: 0.9em;
}
.calculator-form input[type="number"],
.calculator-form select,
.calculator-form button {
font-size: 0.95em;
padding: 10px;
}
.result-container p {
font-size: 1.8em;
}
}
function calculateEIC() {
var filingStatus = document.querySelector('input[name="filingStatus"]:checked').value;
var numChildren = parseInt(document.getElementById('numChildren').value);
var earnedIncome = parseFloat(document.getElementById('earnedIncome').value);
var adjustedGrossIncome = parseFloat(document.getElementById('adjustedGrossIncome').value);
var investmentIncome = parseFloat(document.getElementById('investmentIncome').value);
// Validate inputs
if (isNaN(earnedIncome) || earnedIncome < 0) {
document.getElementById('eicResult').innerText = "Please enter a valid positive Earned Income.";
return;
}
if (isNaN(adjustedGrossIncome) || adjustedGrossIncome < 0) {
document.getElementById('eicResult').innerText = "Please enter a valid positive Adjusted Gross Income.";
return;
}
if (isNaN(investmentIncome) || investmentIncome investmentIncomeLimit2023) {
document.getElementById('eicResult').innerText = "$0.00 (Investment income too high)";
return;
}
// Step 2: Determine the correct rule set
var childrenKey = Math.min(numChildren, 3).toString(); // Cap children at 3 for lookup
var ruleSet = eicRules2023[childrenKey][filingStatus];
if (!ruleSet) {
document.getElementById('eicResult').innerText = "Error: Could not find EIC rules for selected criteria.";
return;
}
// Step 3: Calculate initial credit based on earned income or AGI (whichever is lower)
// The IRS uses the lower of earned income or AGI for the credit calculation up to the maximum.
var creditBase = Math.min(earnedIncome, adjustedGrossIncome);
var initialCredit = Math.min(creditBase * ruleSet.creditRate, ruleSet.maxCredit);
// Step 4: Apply phase-out based on AGI
var phaseOutAGI = adjustedGrossIncome; // IRS uses AGI for phase-out (or earned income if greater, but AGI is common for calculators)
if (phaseOutAGI = ruleSet.phaseOutEndAGI) {
// Fully phased out
calculatedEIC = 0;
} else {
// In phase-out range
var phaseOutRate = ruleSet.maxCredit / (ruleSet.phaseOutEndAGI – ruleSet.phaseOutStartAGI);
var reductionAmount = (phaseOutAGI – ruleSet.phaseOutStartAGI) * phaseOutRate;
calculatedEIC = initialCredit – reductionAmount;
calculatedEIC = Math.max(0, calculatedEIC); // EIC cannot be negative
}
document.getElementById('eicResult').innerText = "$" + calculatedEIC.toFixed(2);
}