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The Earned Income Credit amounts have increased slightly for the 2012 tax year. The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. The 2010 Tax Relief Act extended these increased benefits for 2011 and 2012.

The maximum amount of earned income and adjusted gross income (AGI) must be less than:
  • $45,060 ($50,270 if married filing jointly) with three or more qualifying children
  • $41,952 ($47,162 if married filing jointly) with two qualifying children
  • $36,920 ($42,130 if married filing jointly) with one qualifying child
  • $13,980 ($19,190 if married filing jointly) with no qualifying children
The maximum EIC amount for 2012:
  • $5,891 with three or more qualifying children
  • $5,236 with two qualifying children
  • $3,169 with one qualifying child
  • $475 with no qualifying children
Additional Information:
  • Advance EIC payments from your employer are not available in 2012.
  • The maximum amount of investment income you can have and still get the credit has increased to $3,200 for 2012.
  • You can elect to have your nontaxable combat pay included in earned income for the earned income credit. The amount of your nontaxable combat pay should be shown on your Form W-2, Box 12, Code Q.

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