2016 Earned Income Tax Credit
For 2016, the Earned Income Tax Credit figures are $3,373 (Maximum credit, one child), $5,572 (Maximum credit, two children), $6,269 (Maximum credit, three or more children) and 21 more figures below.
| Item | One child | Two children | Three or more children | Childless filers |
|---|---|---|---|---|
| Maximum credit | $3,373 | $5,572 | $6,269 | $506 |
| Earned income amount | $9,920 | $13,930 | $13,930 | $6,610 |
| Phaseout begins (not filing jointly) | $18,190 | $18,190 | $18,190 | $8,270 |
| Phaseout begins (joint return) | $23,740 | $23,740 | $23,740 | $13,820 |
| Credit reaches zero (not filing jointly) | $39,296 | $44,648 | $47,955 | $14,880 |
| Credit reaches zero (joint return) | $44,846 | $50,198 | $53,505 | $20,430 |
Effective 2016-01-01Source: Rev. Proc. 2015-53 (IRS)Verified 2026-09-03
Maximum credit
Earned income amount
Phaseout begins (not filing jointly)
Phaseout begins (joint return)
Credit reaches zero (not filing jointly)
Credit reaches zero (joint return)
$506$53,505
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers claiming the Earned Income Tax Credit under Internal Revenue Code § 32 for taxable years beginning in 2016.
What changed this year, and why
The Earned Income Tax Credit amounts are adjusted annually for inflation. For 2016, the maximum credit amounts and the earned income levels at which those maximums are reached are set by Revenue Procedure 2015-53.
Common questions
- What is the maximum EITC for 2016?
- The maximum credit for 2016 is $3,373 for filers with one qualifying child, $5,572 for two qualifying children, $6,269 for three or more qualifying children, and $506 for filers with no qualifying children.
- What earned income level produces the maximum credit?
- The earned income amount - the level at which the maximum credit is reached - is $9,920 for one qualifying child, $13,930 for two qualifying children, $13,930 for three or more qualifying children, and $6,610 for no qualifying children.
Married filing jointly gets a higher phaseout range
Married taxpayers who file jointly receive higher phaseout thresholds than those who file as single, surviving spouse, or head of household. The law provides an additional increase to both the threshold phaseout amount and the completed phaseout amount for joint filers, and this increase is adjusted each year for inflation. For 2016, this means that a married couple filing jointly can earn more income before their earned income credit begins to shrink and before it reaches zero entirely, compared to a single filer with the same number of qualifying children. This higher range recognizes that joint filers often support the same household on two incomes. The specific joint-return phaseout amounts differ by the number of qualifying children: one, two, three or more, or none, and are listed in the IRS tables alongside the single-filer amounts.
The threshold phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase provided in § 32(b)(3)(B)(i), as adjusted for inflation for taxable years beginning in 2016.
Rev. Proc. 2015-53 (IRS)
Too much investment income disqualifies you outright
Even if you qualify based on your earned income and number of children, you can be barred from the earned income credit entirely if your investment income is too high. For 2016, if the total of certain investment income sources, such as interest, dividends, capital gains, and rental income, exceeds $3,400, you cannot claim the credit at all regardless of how much you earned from work. This is a hard cutoff, not a gradual phaseout. The purpose is to target the credit toward taxpayers whose resources come primarily from wages and self-employment rather than from investments. You must check both your earned income eligibility and your investment income total before claiming the credit.
For taxable years beginning in 2016, the earned income tax credit is not allowed under § 32(i)(1) if the aggregate amount of certain investment income exceeds $3,400.
Rev. Proc. 2015-53 (IRS)
The IRS publishes a lookup table, and that is what you file from
Rather than requiring taxpayers to calculate their credit using a formula, the IRS publishes precomputed tables in the instructions for the Form 1040 series. These tables show the exact credit amount for each type of taxpayer based on filing status, number of qualifying children, and income level. The reason tables are used is that the credit calculation involves a multi-step formula: a percentage applied to earned income up to the earned income amount, then a phaseout based on the higher of adjusted gross income or earned income above the threshold phaseout amount. Because the credit must be rounded and the phaseout rates interact with multiple income thresholds, the tables eliminate the need for manual calculation and reduce errors. Taxpayers simply look up their income range and filing status to find their credit amount.
The instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.
Rev. Proc. 2015-53 (IRS)
The phaseout is measured on whichever is higher: your AGI or your earnings, and it shrinks gradually rather than falling off a cliff
For 2016, the EITC begins to phase out once a taxpayer's income exceeds a threshold amount, and it is reduced to zero at a higher completed phaseout amount. Both of those amounts are set by reference to adjusted gross income (AGI) or earned income, whichever is greater. This means that if your AGI is below your earned income, the IRS measures the phaseout against the earned income figure instead, so the credit does not stretch further than it should. The rule works the same way at the top end: once the greater of AGI or earned income reaches the completed phaseout amount, no credit is allowed at all. For 2016, the phaseout thresholds and completed phaseout amounts vary by the number of qualifying children and by filing status, but in every case the measurement is taken on whichever of AGI or earnings is higher, not on AGI alone.
The "threshold phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out. The "completed phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) at or above which no credit is allowed.
Rev. Proc. 2015-53 (IRS)
Your earnings have to reach a floor before the credit maxes out, then it holds flat until the phaseout begins
For 2016, the earned income credit grows with the taxpayer's earned income until the earnings reach a specified floor called the "earned income amount." Once earned income hits that level, the credit is at its maximum and stays flat as earnings continue to rise. It does not increase further, and it does not yet begin to fall; the credit simply holds at the maximum amount until the phaseout range is later reached. For a taxpayer with one qualifying child the earned income amount for 2016 is $9,920, and for those with two children or three or more children it is $13,930. A childless filer's earned income amount is $6,610. At those earnings levels the credit maxes out at $3,373 for one child, $5,572 for two children, $6,269 for three or more children, and $506 for a childless filer. Above the earned income amount the maximum credit is allowed in full, and it is only when the greater of AGI or earned income passes the threshold phaseout amount that the credit begins to shrink.
The "earned income amount" is the amount of earned income at or above which the maximum amount of the earned income credit is allowed.
Rev. Proc. 2015-53 (IRS)
Getting a valid SSN after your filing deadline is too late to amend for that year
For the 2016 tax year, the IRS required taxpayers to have a valid Social Security Number (SSN) by the due date of their return, including any extensions. If you did not have a valid SSN by that deadline, you could not claim the Earned Income Tax Credit on your original 2016 return, nor could you claim it later by filing an amended return, even if you obtained a valid SSN after the filing deadline passed. This rule also applied to any child you wanted to count as a qualifying child for the credit. If a child did not receive their SSN by the due date of your 2016 return (including extensions), you could not count that child toward the credit, even if the child later obtained an SSN. This meant that families who had children late in the year or whose SSN applications were still pending at filing time could not benefit from the credit for that year. The maximum credit amounts for 2016 were $506 for childless filers, $3,373 for one qualifying child, $5,572 for two qualifying children, and $6,269 for three or more qualifying children, but only those with valid SSNs in place by the deadline could claim them.
Valid SSN required by due date of return. If you didn't have a social security number (SSN) by the due date of your 2016 return (including extensions), you can't claim the EIC on either your original or an amended 2016 return, even if you later get an SSN. Also, if a child didn't have an SSN by the due date of your return (including extensions), you can't count that child as a qualifying child in figuring the EIC on either your original or an amended 2016 return, even if that child later gets an SSN.
Publication 596 (2016), Earned Income Credit (IRS)
If the credit is bigger than the tax you owe, you get the difference back
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $53,505. A tax credit usually means more money in your pocket because it reduces the amount of tax you owe. The EIC may also give you a refund. If the amount of the credit is more than the tax you owe, you get the difference back as a refund. For 2016, the maximum credit amounts were $506 for filers with no qualifying children, $3,373 for those with one qualifying child, $5,572 for those with two qualifying children, and $6,269 for those with three or more qualifying children. These refund amounts are available even if you owe no tax at all, which is what makes the EIC particularly valuable for low-income working families.
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $53,505. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.
Publication 596 (2016), Earned Income Credit (IRS)
Getting the EIC does not hurt your eligibility for other federal benefit programs
For the 2016 tax year, any refund you receive because of the Earned Income Tax Credit cannot be counted as income when determining your eligibility for benefits or assistance under federal programs or state and local programs that are financed in whole or in part with federal funds. The programs specifically listed include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), the Supplemental Nutrition Assistance Program (food stamps), and low-income housing. In addition, when determining eligibility, the EIC refund cannot be counted as a resource for at least 12 months after you receive it. This means that receiving the EIC does not reduce your benefits or cause you to lose eligibility for these assistance programs, at least in the short term. The maximum credit amounts for 2016 were $506 for childless filers, $3,373 for one qualifying child, $5,572 for two qualifying children, and $6,269 for three or more qualifying children, and families receiving these credits can be assured that the refund will not affect their participation in these essential support programs.
Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any fed- eral program or under any state or local program financed in whole or in part with federal funds. These programs in- clude the following. Temporary Assistance for Needy Families (TANF). Medicaid. Supplemental security income (SSI). Supplemental Nutrition Assistance Program (food stamps). Low-income housing. In addition, when determining eligibility, the refund can- not be counted as a resource for at least 12 months after you receive it.
Publication 596 (2016), Earned Income Credit (IRS)
A wrong claim can cost you the credit for 2 or 10 years afterward
If the IRS determined that your 2016 EIC claim resulted from reckless or intentional disregard of the EIC rules, you are barred from claiming the credit for two years after that final determination. If the claim was instead due to fraud, the ban lasts ten years after the final determination. During either disqualification period, you may not take the EIC even if you otherwise meet every eligibility requirement. The rule applies once there is a final determination by the IRS that the prior-year disallowance was based on one of these grounds. The dates on which your earlier EIC was denied and on which you file a later return determine whether you must attach Form 8862 to reestablish eligibility or whether you remain completely barred from the credit for that period.
Exception 2. Don't file Form 8862 or take the EIC for: 2 years after there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or 10 years after there was a final determination that your EIC claim was due to fraud.
Publication 596 (2016), Earned Income Credit (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2015-53 (IRS)
- Maximum credit, one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506
- Maximum credit, two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506
- Maximum credit, three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506
- Maximum credit, childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506
- Earned income amount, one child
Earned Income Amount $9,920
- Earned income amount, two children
Earned Income Amount $9,920 $13,930
- Earned income amount, three or more children
Earned Income Amount $9,920 $13,930 $13,930
- Earned income amount, childless filers
Earned Income Amount $9,920 $13,930 $13,930 $6,610
- Phaseout begins (not filing jointly), one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household)
- Phaseout begins (not filing jointly), two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household)
- Phaseout begins (not filing jointly), three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household)
- Phaseout begins (not filing jointly), childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household)
- Phaseout begins (joint return), one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly)
- Phaseout begins (joint return), two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly)
- Phaseout begins (joint return), three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly)
- Phaseout begins (joint return), childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly)
- Credit reaches zero (not filing jointly), one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household)
- Credit reaches zero (not filing jointly), two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household)
- Credit reaches zero (not filing jointly), three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household)
- Credit reaches zero (not filing jointly), childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household)
- Credit reaches zero (joint return), one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly) Completed Phaseout $44,846 $50,198 $53,505 $20,430 Amount (Married Filing Jointly)
- Credit reaches zero (joint return), two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly) Completed Phaseout $44,846 $50,198 $53,505 $20,430 Amount (Married Filing Jointly)
- Credit reaches zero (joint return), three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly) Completed Phaseout $44,846 $50,198 $53,505 $20,430 Amount (Married Filing Jointly)
- Credit reaches zero (joint return), childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $9,920 $13,930 $13,930 $6,610 Maximum Amount of Credit $3,373 $5,572 $6,269 $506 Threshold Phaseout $18,190 $18,190 $18,190 $8,270 Amount (Single, Surviving Spouse, or Head of Household) Completed Phaseout $39,296 $44,648 $47,955 $14,880 Amount (Single, Surviving Spouse, or Head of Household) Threshold Phaseout $23,740 $23,740 $23,740 $13,820 Amount (Married Filing Jointly) Completed Phaseout $44,846 $50,198 $53,505 $20,430 Amount (Married Filing Jointly)