TaxAct® automatically calculates the earned income credit based on the information in your return. If you have a dependent that is a qualifying child, enter your dependent information (including name, SSN, relationship to you, year of birth, number of months lived with you, and student status if ages 19 through 23) during the Basic Information questions. TaxAct will then use the dependent information in the calculation of the earned income credit. To review your dependent entries, click on the Basic Info tab and then click on Dependents. You must also enter your income information before the credit can calculate.
To enter or review your earned income credit information in TaxAct:
The Tax Relief and Job Creation Act extends a temporary increase in the earned income tax credit (EITC) for taxpayers with three or more qualifying children. The maximum EITC for this category is now $6,318. The Act also extends an increase in the beginning point of the phaseout range for the credit for all married couples filing a joint return, regardless of the number of children. These changes apply to tax returns through tax year 2017.
The earned income tax credit is a refundable credit intended to help people who work but earn modest incomes. To qualify, earned income and adjusted gross income must each be less than:
$48,340 ($53,930 married filing jointly) with three or more qualifying children
$45,007 ($50,597 married filing jointly) with two qualifying children
$39,617 ($45,207 married filing jointly) with one qualifying child
$15,010 ($20,600 married filing jointly) with no qualifying children
The maximum credit for tax year 2017 is:
$6,318 with three or more qualifying children
$5,616 with two qualifying children
$3,400 with one qualifying child
$510 with no qualifying children