The Earned Income Credit amounts have increased slightly for the 2016 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 maximum amount of earned income and adjusted gross income (AGI) must be less than:
  • $47,955 ($53,505 if married filing jointly) with three or more qualifying children
  • $44,648 ($50,198 if married filing jointly) with two qualifying children
  • $39,296 ($44,846 if married filing jointly) with one qualifying child
  • $14,880 ($20,430 if married filing jointly) with no qualifying children
The maximum EIC amount for 2016:
  • $6,269 with three or more qualifying children
  • $5,572 with two qualifying children
  • $3,373 with one qualifying child
  • $506 with no qualifying children

Additional Information:
  • The maximum amount of investment income you can have and still get the credit is $3,400 for 2016.
  • 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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