2018 Earned Income Tax Credit
For 2018, the Earned Income Tax Credit is $3,461 (Maximum credit, one child), $5,716 (Maximum credit, two children), $6,431 (Maximum credit, three or more children) and 5 more figures below.
| Item | One child | Two children | Three or more children | Childless filers |
|---|---|---|---|---|
| Maximum credit | $3,461 | $5,716 | $6,431 | $519 |
| Earned income amount | $10,180 | $14,290 | $14,290 | $6,780 |
Effective 2018-01-01Source: Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)Verified 2026-08-29
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Maximum credit, one child | $3,400 | $3,461 | +$61 (+1.8%) |
| Maximum credit, two children | $5,616 | $5,716 | +$100 (+1.8%) |
| Maximum credit, three or more children | $6,318 | $6,431 | +$113 (+1.8%) |
| Maximum credit, childless filers | $510 | $519 | +$9 (+1.8%) |
| Earned income amount, one child | $10,000 | $10,180 | +$180 (+1.8%) |
| Earned income amount, two children | $14,040 | $14,290 | +$250 (+1.8%) |
| Earned income amount, three or more children | $14,040 | $14,290 | +$250 (+1.8%) |
| Earned income amount, childless filers | $6,670 | $6,780 | +$110 (+1.6%) |
Who it applies to
Taxpayers who claim the Earned Income Tax Credit (EITC) for taxable years beginning in 2018
What changed this year, and why
Cost-of-living adjustments to the earned income credit amounts under IRC § 32(b) for taxable years beginning in 2018, as published in Rev. Proc. 2018-18.
Common questions
- What is the Earned Income Tax Credit?
- A refundable tax credit for low- to moderate-income working individuals and families. The credit amount depends on income and the number of qualifying children.
- What is the earned income amount?
- It is the amount of earned income at or above which the maximum EITC is allowed.
- Is the earned income amount the income limit for claiming the credit?
- No. The credit begins to phase out once income exceeds the threshold phaseout amount and is eliminated entirely once income reaches the completed phaseout amount.
The income at which the credit stops growing
The earned income amount is the point at which the credit reaches its ceiling. Below this figure the credit grows as earned income rises; once a taxpayer's earned income meets or exceeds it, the full maximum credit is available. For 2018 the earned income amounts are: $10,180 for one qualifying child, $14,290 for two children, $14,290 for three or more children, and $6,780 for a childless filer. The corresponding maximum credits are $3,461, $5,716, $6,431, and $519. Earning less than the earned income amount simply means the credit will be proportionally smaller; earning more does not reduce the credit by itself - the phaseout described under the threshold phaseout amount is what starts to shrink it.
The “earned in- come amount” is the amount of earned income at or above which the maximum amount of the earned income credit is allowed.
Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
Where the credit starts shrinking, and which income counts
The threshold phaseout amount marks where the credit starts to shrink. Once a taxpayer's income exceeds this figure, each additional dollar of income reduces the credit until it eventually reaches zero at the completed phaseout amount. The threshold is based on adjusted gross income, or earned income if that amount is higher, so the IRS uses whichever is larger to determine when phaseout begins. Married couples filing jointly get higher thresholds than other filing statuses, as explained in the section on married filing jointly thresholds. The credit reduction applies regardless of filing status once income surpasses the applicable threshold amount. Taxpayers must compare their income to the threshold phaseout amount for their filing status and number of qualifying children to know if and when their credit will begin to decrease.
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.
Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
The income at which the credit reaches zero
The completed phaseout amount is where the credit disappears entirely. Once a taxpayer's income reaches or exceeds this level, no credit is allowed regardless of other circumstances. Like the threshold phaseout amount, this figure is based on adjusted gross income or earned income, whichever is greater. Married couples filing jointly have higher completed phaseout amounts than other filing statuses. The credit phases out gradually between the threshold phaseout amount and the completed phaseout amount, so taxpayers with income in that range receive a reduced credit rather than the full amount they would get at lower income levels. Anyone whose income meets or exceeds the completed phaseout amount for their filing status and number of qualifying children receives no earned income credit at all.
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. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
Married filing jointly gets a higher phaseout range
Married couples filing jointly receive higher phaseout thresholds than single filers, surviving spouses, and heads of household. This additional breathing room reflects the fact that married couples often combine incomes and face different economic circumstances. The statute provides this increase specifically for joint returns, and the amounts are adjusted annually for inflation. Both the threshold phaseout amounts and the completed phaseout amounts are higher for married couples filing jointly compared to other filing statuses. This means married couples can earn more before their credit begins to shrink and before it reaches zero entirely. The higher amounts acknowledge that two-earner households may have higher combined incomes while still being considered low to moderate income families eligible for the credit.
The thresh- old phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase pro- vided in § 32(b)(3)(B)(i), as adjusted for inflation for taxable years beginning in 2018.
Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
Too much investment income disqualifies you outright
Investment income above a certain level disqualifies a taxpayer from the earned income credit entirely, regardless of how much earned income they have. This rule prevents higher-income individuals who receive substantial investment returns from claiming a credit designed for working people with low to moderate incomes. For 2018 if the aggregate amount of certain investment income exceeds $3,500, the earned income tax credit is not allowed. This is a bright-line test: even a small amount over the limit eliminates the credit completely. The investment income disqualifier operates independently of the earned income and phaseout rules, so taxpayers must check both their earned income levels and their investment income to determine eligibility. Investment income typically includes interest, dividends, capital gains, and other passive income sources.
For taxable years beginning in 2018, the earned income tax credit is not allowed under § 32(i)(1) if the aggregate amount of certain investment income exceeds $3,500.
Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
Why your credit is read off a table, not multiplied out
The earned income credit is not calculated by applying a formula or multiplying income by a rate. Instead, the IRS provides tables that show the exact credit amount for each income level and filing situation. Taxpayers look up their credit based on their earned income, filing status, and number of qualifying children. These tables account for the complex interaction between the credit's growth phase, its maximum amount, and the phaseout reduction. The tables eliminate the need for taxpayers to perform calculations or determine which phase of the credit applies to their situation. The instructions for the Form 1040 series contain these tables, organized so that taxpayers can find their exact credit amount without needing to understand the underlying formula or track where their income falls relative to the earned income amount, threshold phaseout amount, or completed phaseout amount.
The instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of tax- payer.
Rev. Proc. 2018-18 (Internal Revenue Bulletin 2018-10) (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. 2018-18 (Internal Revenue Bulletin 2018-10) (IRS)
- Maximum credit, one child
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $10,180 $14,290 $14,290 $6,780 Maximum Amount of Credit $3,461 $5,716 $6,431 $519
- Maximum credit, two children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $10,180 $14,290 $14,290 $6,780 Maximum Amount of Credit $3,461 $5,716 $6,431 $519
- Maximum credit, three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $10,180 $14,290 $14,290 $6,780 Maximum Amount of Credit $3,461 $5,716 $6,431 $519
- Maximum credit, childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income Amount $10,180 $14,290 $14,290 $6,780 Maximum Amount of Credit $3,461 $5,716 $6,431 $519
- Earned income amount, one child
Earned Income Amount $10,180
- Earned income amount, two children
Earned Income Amount $10,180 $14,290
- Earned income amount, three or more children
Earned Income Amount $10,180 $14,290 $14,290
- Earned income amount, childless filers
Earned Income Amount $10,180 $14,290 $14,290 $6,780