2019 Earned Income Credit (EITC) Calculator

Estimate your potential 2019 Earned Income Credit refund.

Your 2019 EITC Inputs

EITC vs. Income for Your Situation

Estimated Earned Income Credit based on varying income levels, keeping other inputs constant.

2019 EITC Income Limits and Maximum Credit by Number of Children

Number of Qualifying Children	Maximum Earned Income (Single/HoH/Surviving Spouse)	Maximum Earned Income (Married Filing Jointly)	Maximum Credit

IRS EITC income limits and maximum credit amounts for the 2019 tax year.

What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit, commonly known as EITC or EIC, is a valuable tax credit for working people who have low to moderate income. It’s designed to help offset the burden of taxes and provide a boost to your net earnings. Unlike a deduction, which reduces your taxable income, a credit directly reduces the amount of tax you owe. If the credit is more than the tax you owe, you can get the difference back as a refund. The EITC is a crucial program that benefits millions of individuals and families each year, encouraging work and providing much-needed financial relief. It’s essential to understand that this is a credit specifically tied to your earned income, meaning income from working, not from investments or other passive sources.

Who Should Use the EITC Calculator?
Anyone who worked and earned income during the 2019 tax year, especially those with lower incomes, should consider using an EITC calculator. This includes single individuals, married couples, those with and without qualifying children. It’s particularly beneficial for:

• Low-income workers.
• Families with children.
• Individuals who may not realize they qualify.
• Taxpayers looking to maximize their tax refund.

Common Misconceptions about EITC:
Many people misunderstand the EITC. Some common myths include:

• “It’s only for families with children.” While the credit is larger for those with children, individuals without qualifying children can also claim the EITC.
• “It’s a loan.” The EITC is a tax credit, not a loan. If it exceeds your tax liability, you receive the difference as a refund.
• “You have to have a specific type of job.” The EITC is based on earned income, so most types of employment qualify, provided income limits are met.
• “You can’t claim it if you received other benefits.” Receiving other government benefits generally does not affect your EITC eligibility.

Understanding the nuances of the Earned Income Credit is key to utilizing this benefit fully. Our 2019 Earned Income Credit calculator simplifies this process.

2019 Earned Income Credit (EITC) Formula and Calculation

Calculating the Earned Income Credit involves a series of steps and comparisons against IRS-defined limits. The exact formula is complex and depends heavily on the tax year. For 2019, the calculation generally follows these principles:

1. Determine Earned Income: This is the income you received from working.
2. Determine Adjusted Gross Income (AGI): This is your gross income minus certain specific deductions.
3. Determine Number of Qualifying Children: This is crucial as it significantly impacts the credit amount and income limits.
4. Determine Filing Status: Married Filing Jointly status has higher income limits.
5. Compare Earned Income and AGI: The credit is generally calculated using the lesser of your earned income or AGI.
6. Calculate Maximum Potential Credit: For each number of children (0, 1, 2, 3+), the IRS sets a maximum credit amount and corresponding income phase-out ranges.
7. Apply Phase-Out Rules: The credit begins to decrease (phase out) once your income exceeds a certain limit. This limit is higher for those married filing jointly and for those with more qualifying children.

The core idea is that the EITC provides a larger credit to those with more children and a smaller credit to those with fewer or no children, while ensuring that individuals don’t earn too much to remain eligible. Our 2019 Earned Income Credit calculator automates these complex steps.

Variables Used in EITC Calculation (2019)

Variable	Meaning	Unit	Typical Range (2019)
Earned Income	Income from wages, salaries, tips, and other taxable employee compensation. Also includes net earnings from self-employment.	USD	$0 – $55,952 (for 3+ children)
Adjusted Gross Income (AGI)	Gross income minus specific above-the-line deductions. Must be less than the maximum income limit for eligibility.	USD	$0 – $55,952 (for 3+ children)
Number of Qualifying Children	The count of children who meet the IRS criteria to be considered a qualifying child for the taxpayer.	Count	0, 1, 2, 3+
Filing Status	Taxpayer’s status reported on their tax return (e.g., Single, Married Filing Jointly).	Status	Single, Married Filing Jointly, etc.
Maximum Credit	The highest possible EITC amount based on the number of qualifying children.	USD	Up to $6,557 (for 3+ children)
Phase-out Income Limit	The income threshold above which the EITC amount begins to decrease. Varies by filing status and number of children.	USD	$16,420 (0 children, Single) to $55,952 (3+ children, MFJ)

Key variables influencing the 2019 Earned Income Credit calculation.

Practical Examples of 2019 EITC Calculation

Example 1: Single Parent with Two Children

Maria is single and has two children. For the 2019 tax year, her earned income was $30,000, and her AGI was also $30,000. She used our 2019 Earned Income Credit calculator.

• Inputs:
• Earned Income: $30,000
• Number of Qualifying Children: 2
• Filing Status: Single
• AGI: $30,000

The calculator determined that for two children in 2019, the maximum credit was $5,460, and the phase-out income limit for a single filer was $46,540. Since Maria’s income ($30,000) is below the phase-out limit, her credit is calculated based on her income.

Estimated EITC: $4,500 (This is an illustrative figure, actual calculation involves specific IRS tables)

Financial Interpretation: Maria qualifies for a substantial Earned Income Credit, which will significantly reduce her tax liability or increase her refund, providing valuable financial assistance.

Example 2: Married Couple with No Children

John and Jane are married and filed jointly in 2019. They have no qualifying children. Their combined earned income was $15,000, and their AGI was $16,000. They used the Earned Income Credit calculator.

• Inputs:
• Earned Income: $15,000
• Number of Qualifying Children: 0
• Filing Status: Married Filing Jointly
• AGI: $16,000

For 2019, the maximum EITC for someone with no children was $538, and the phase-out income limit for those married filing jointly was $21,430. John and Jane’s income is below this limit.

Estimated EITC: $502 (This is an illustrative figure, actual calculation involves specific IRS tables)

Financial Interpretation: Even without children, John and Jane are eligible for a small Earned Income Credit, demonstrating that the EITC is available to a wider range of low-to-moderate income workers. This credit can still make a difference in their financial situation.

How to Use This 2019 EITC Calculator

Our 2019 Earned Income Credit calculator is designed for simplicity and accuracy. Follow these steps to estimate your potential credit:

1. Enter Your 2019 Earned Income: Input the total amount of income you earned from working during the 2019 tax year. This includes wages, salaries, tips, and net earnings from self-employment.
2. Specify Number of Qualifying Children: Select the number of children who meet the IRS criteria to be your qualifying child for 2019. If you don’t have qualifying children, select ‘0’.
3. Select Your 2019 Filing Status: Choose the filing status you used (or will use) for your 2019 tax return. This significantly impacts the income limits.
4. Enter Your 2019 Adjusted Gross Income (AGI): Provide your AGI for the 2019 tax year. For many taxpayers, AGI is close to their earned income, but it can differ based on deductions.
5. Click “Calculate EITC”: The calculator will process your inputs and display your estimated 2019 EITC.

Reading Your Results:
The calculator will show:

• Primary Result: Your estimated total Earned Income Credit amount for 2019.
• Intermediate Values: Key figures like the maximum possible credit for your situation, the income limit at which your credit starts to decrease (phase-out limit), and a factor related to your income.

Decision-Making Guidance:
Use these results as an estimate. If your estimated credit is substantial, it indicates you may be eligible for significant tax savings. This information can help you prepare your taxes more accurately, potentially prompting you to explore tax preparation services if you need further assistance. Remember, this calculator provides an estimate based on 2019 rules; consult official IRS resources or a tax professional for definitive guidance. Use the Copy Results button to save your estimate.

Key Factors That Affect Your 2019 EITC Results

Several critical factors determine the amount of Earned Income Credit you may receive for the 2019 tax year. Understanding these can help you maximize your benefit:

1. Earned Income Amount: This is the primary driver. The EITC is designed for low-to-moderate income workers. There’s a sweet spot; earning too little might result in a smaller credit, while earning too much will phase you out of eligibility entirely. For 2019, the maximum earned income limits varied significantly by the number of children.
2. Number of Qualifying Children: This is perhaps the most significant factor influencing the potential credit amount. The IRS offers substantially larger credits to taxpayers with one, two, or three or more qualifying children compared to those with no children. The income limits for eligibility also increase with more children.
3. Adjusted Gross Income (AGI): While earned income is key, AGI also plays a role. The EITC is calculated based on the lesser of your earned income or AGI. If your AGI is significantly higher than your earned income (e.g., due to certain taxable benefits or other income sources not considered “earned”), it won’t directly reduce your EITC calculation but confirms you meet AGI thresholds. However, if your AGI exceeds the specific phase-out limits, your credit will be reduced or eliminated.
4. Filing Status: Your tax filing status impacts the income thresholds. Married couples filing jointly generally have higher income limits than single filers, allowing them to earn more before their credit begins to phase out. This reflects the combined income potential of a household.
5. Age Requirements (for those without children): If you do not have a qualifying child, you must meet certain age requirements to claim the EITC. For 2019, you generally needed to be at least 25 but under 65 years old. This rule aims to provide the credit to younger working adults and prevent it from being claimed by those already retired or receiving other significant benefits.
6. Residency and Identification Requirements: To claim the EITC, you must have a valid Social Security number, have lived in the U.S. for more than half the year, and not be claimed as a dependent or qualifying child by another person. These are fundamental eligibility criteria ensuring the credit goes to the intended recipients.
7. Investment Income Limits: For 2019, if your investment income exceeded $3,600, you could not claim the EITC. This rule helps ensure the credit is primarily for low-to-moderate income *wage earners* and not investors.

Accurately reporting these details is crucial for an accurate Earned Income Credit calculation.

Frequently Asked Questions (FAQ) about the 2019 EITC

Q1: Can I claim the 2019 EITC if I was unemployed for part of the year?

Yes, you can claim the 2019 EITC if you had earned income, even if you were unemployed for part of the year. The credit is based on your total earned income for the year and meeting other eligibility requirements.

Q2: How do I know if a child is a “qualifying child” for the EITC?

A child generally must meet tests related to age (under 19, or under 24 if a student, or any age if permanently and totally disabled), relationship (son, daughter, stepchild, foster child, sibling, etc.), residency (lived with you for more than half the year), and joint return. You cannot claim the same child as another taxpayer.

Q3: My spouse and I filed separately in 2019. Can I still claim the EITC?

Generally, if you are married, you must file jointly to claim the EITC. However, there’s an exception: if you lived apart from your spouse for at least the last 6 months of 2019, you might be able to file as Head of Household and potentially qualify for the EITC.

Q4: What is the difference between earned income and AGI for EITC purposes?

Earned income includes wages, salaries, tips, and net earnings from self-employment. AGI (Adjusted Gross Income) is your gross income minus certain deductions (like student loan interest or IRA contributions). For EITC calculation, you use the lesser of your earned income or AGI. Your AGI also must not exceed the IRS-defined limits for your filing status and number of children.

Q5: Can I use the 2019 EITC calculator if I had self-employment income?

Yes, net earnings from self-employment are considered earned income for the EITC. When calculating your EITC, you’ll need to subtract half of your self-employment tax from your gross self-employment income to arrive at your net earnings, which is then used as earned income. Our calculator assumes you input the correct net earned income.

Q6: Does receiving unemployment benefits affect my EITC eligibility for 2019?

Unemployment benefits are generally not considered earned income and thus do not directly count towards your earned income for EITC purposes. However, if your AGI exceeds the limits due to other income sources, it could impact your eligibility.

Q7: What is the highest possible EITC for 2019?

For the 2019 tax year, the maximum Earned Income Credit was $6,557 for taxpayers with three or more qualifying children. The maximum credit amounts decrease for those with fewer children.

Q8: How can I get help preparing my taxes if I think I qualify for the EITC?

You can use IRS-certified volunteers through the Volunteer Income Tax Assistance (VITA) program or Tax Counseling for the Elderly (TCE) program. Many tax software programs also have built-in EITC assistance. Consulting a qualified tax professional is also an option.