2021 Earned Income Tax Credit
For 2021, the Earned Income Tax Credit is $3,618 (Maximum credit, one child), $5,980 (Maximum credit, two children), $6,728 (Maximum credit, three or more children) and 5 more figures below.
| Item | One child | Two children | Three or more children | Childless filers |
|---|---|---|---|---|
| Maximum credit | $3,618 | $5,980 | $6,728 | $1,502 |
| Earned income amount | $10,640 | $14,950 | $14,950 | $9,820 |
Effective 2021-01-01Source: Rev. Proc. 2021-23 (IRS)Verified 2026-08-29
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Maximum credit, one child | $3,584 | $3,618 | +$34 (+0.9%) |
| Maximum credit, two children | $5,920 | $5,980 | +$60 (+1.0%) |
| Maximum credit, three or more children | $6,660 | $6,728 | +$68 (+1.0%) |
| Maximum credit, childless filers | $538 | $1,502 | +$964 (+179.2%) |
| Earned income amount, one child | $10,540 | $10,640 | +$100 (+0.9%) |
| Earned income amount, two children | $14,800 | $14,950 | +$150 (+1.0%) |
| Earned income amount, three or more children | $14,800 | $14,950 | +$150 (+1.0%) |
| Earned income amount, childless filers | $7,030 | $9,820 | +$2,790 (+39.7%) |
Who it applies to
Working taxpayers with low to moderate income who are claiming the Earned Income Tax Credit for the 2021 tax year
What changed this year, and why
For taxable years beginning in 2021, the American Rescue Plan Act temporarily modified the Earned Income Tax Credit, substantially increasing credit amounts for childless filers and making smaller inflation-style adjustments for taxpayers with qualifying children.
Common questions
- How did the maximum credit for childless filers change from 2020 to 2021?
- The maximum credit for filers with no qualifying children rose from $538 in 2020 to $1,502 in 2021, nearly tripling under the American Rescue Plan Act.
- What is the earned income amount?
- The earned income amount is the level of earned income at or above which the full maximum credit is allowed. For 2021 it is $10,640 for one child, $14,950 for two or three or more children, and $9,820 for childless filers.
The income at which the credit stops growing
The earned income amount is the ceiling for the credit's growth phase. Once a taxpayer's earned income reaches this level, the credit is at its maximum and does not increase further even if the taxpayer earns more. For 2021, the earned income amount is $9,820 for a filer with no qualifying children, $10,640 for a filer with one qualifying child, and $14,950 for a filer with two or with three or more qualifying children. In the credit's earlier phase, the credit rises as earned income rises toward these figures; above them, the credit stays flat at the maximum until income crosses into the phaseout range. Note that the earned income amount is measured using earned income only, not adjusted gross income, so wages and self-employment earnings - but not, say, investment returns - are what count for reaching this plateau.
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. 2021-23 (IRS)
Where the credit starts shrinking, and which income counts
The threshold phaseout amount is the income level at which the maximum credit begins to shrink. Once a taxpayer's income exceeds this dollar figure, each additional dollar of income reduces the credit until it eventually reaches zero. For 2021, this threshold matters because the test uses the higher of two income numbers: adjusted gross income or earned income. In other words, if a taxpayer's earned income is higher than adjusted gross income, it is the earned income that is measured against the threshold, and vice versa. This dual measurement prevents certain taxpayers from avoiding the phaseout simply because their adjusted gross income falls below their earned income. The threshold amounts themselves are set separately for single, surviving spouse, and head of household filers versus married filing jointly filers, with joint filers receiving a higher threshold for each category of qualifying children.
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. 2021-23 (IRS)
The income at which the credit reaches zero
The completed phaseout amount is the income ceiling beyond which no credit is allowed at all. Once a taxpayer's income reaches or exceeds this figure, the earned income credit is reduced to zero. Like the threshold phaseout amount, this figure is tested against the greater of adjusted gross income or earned income, so whichever of the two is higher is the number that is compared to the completed phaseout amount. For 2021, the completed phaseout amounts are set at different levels depending on filing status and the number of qualifying children. Married taxpayers filing jointly receive a higher completed phaseout amount than single, surviving spouse, or head of household filers with the same number of children, reflecting the joint filer increase built into the statute.
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. 2021-23 (IRS)
Married filing jointly gets a higher phaseout range
Married taxpayers filing a joint return receive a higher phaseout range than other filing statuses. The revenue procedure states that both the threshold phaseout amounts and the completed phaseout amounts shown in the table for married filing jointly filers incorporate a separate, inflation-adjusted increase provided under § 32(b)(2)(B) of the Internal Revenue Code. This joint filer increase means that a married couple filing jointly can earn more before the credit starts shrinking, and can earn even more before the credit reaches zero, than a single, surviving spouse, or head of household filer with the same number of qualifying children. The increase is added to the baseline phaseout amounts and is adjusted each year for inflation. For 2021, the joint filer threshold phaseout amounts and completed phaseout amounts are shown in their own rows of the table, distinct from the rows for other filing statuses.
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)(2)(B), as adjusted for inflation for taxable years beginning in 2021.
Rev. Proc. 2021-23 (IRS)
Too much investment income disqualifies you outright
A taxpayer with too much investment income is completely barred from claiming the earned income credit. The revenue procedure provides that for taxable years beginning in 2021, the EIC is not allowed at all if the aggregate amount of disqualified investment income exceeds $10,000. This is an outright disqualifier, not a reduction: once disqualified investment income crosses the $10,000 threshold, the taxpayer receives zero credit regardless of how much earned income they have or how many qualifying children they claim. The term "disqualified investment income" refers to investment-type income such as interest, dividends, capital gains, and certain other passive income items as defined under the statute. This $10,000 disqualifying amount is adjusted for inflation for taxable years beginning after December 31, 2021.
(2) Excessive Investment Income. For taxable years beginning in 2021, the EIC is not allowed if the aggregate amount of disqualified investment income exceeds $10,000.
Rev. Proc. 2021-23 (IRS)
Why your credit is read off a table, not multiplied out
The Earned Income Credit for 2021 is not calculated by applying a single percentage to your income. Instead, the revenue procedure sets specific dollar amounts that determine your credit based on the number of qualifying children you have. These amounts include the earned income amount (where the credit reaches its maximum), the maximum credit itself, the threshold phaseout amount (where the credit begins to shrink), and the completed phaseout amount (where the credit reaches zero). For a filer with no qualifying children the maximum credit is $1,502, with one child it is $3,618, with two children it is $5,980, and with three or more children it is $6,728. The earned income amounts are $9,820 for childless filers, $10,640 for one child, and $14,950 for two or three or more children. You look up the appropriate column for your situation in the published table rather than multiplying income by a rate.
For taxable years beginning in 2021, the following amounts are used to determine the EIC under § 32(b).
Rev. Proc. 2021-23 (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. 2021-23 (IRS)
- Maximum credit, one child
Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount Maximum Amount $3,618 $ 5,980 $6,728 $1,502 Of Credit
- Maximum credit, two children
Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount Maximum Amount $3,618 $ 5,980 $6,728 $1,502 Of Credit
- Maximum credit, three or more children
Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount Maximum Amount $3,618 $ 5,980 $6,728 $1,502 Of Credit
- Maximum credit, childless filers
Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount Maximum Amount $3,618 $ 5,980 $6,728 $1,502 Of Credit
- Earned income amount, one child
Number of Qualifying Children Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount
- Earned income amount, two children
Number of Qualifying Children Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount
- Earned income amount, three or more children
Number of Qualifying Children Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount
- Earned income amount, childless filers
Number of Qualifying Children Item One Two Three or More None Earned Income $10,640 $14,950 $14,950 $9,820 Amount