Earned income credit 2027

Earned Income Credit 2027: Up to $8,496 — and the One Date That Trips People Up

by

The earned income credit is going up again in 2027. The IRS confirmed on November 5, 2026 that the maximum credit will be $8,496 for families with three or more children, up from $8,231 this year. For a worker with no children, the top credit rises to $685.

That is real money, and it works differently from most tax breaks. The earned income credit is refundable, which means you can get the full amount even if you owe no federal income tax at all. If your credit is bigger than your tax bill, the IRS sends you the difference as a refund.

But read the date on these numbers before you do anything with them. The 2027 figures apply to the income you earn in 2027, on the return you file in early 2028. If you are filing a return this spring, you are filing for tax year 2026, and the old numbers still apply. Mixing the two years up is the single easiest mistake with this credit, and it is the reason this article leads with it.

How much is the earned income credit in 2027?

The credit grows with the number of qualifying children you claim. Here are the IRS maximums for tax year 2027, from Revenue Procedure 2026-35:

  • No qualifying children: $685 (up from $664 in 2026)
  • One qualifying child: $4,573 (up from $4,427)
  • Two qualifying children: $7,552 (up from $7,316)
  • Three or more qualifying children: $8,496 (up from $8,231)

You do not get the maximum automatically. The credit phases in as your earnings rise, holds at the top for a stretch, then shrinks as your income climbs further. To reach the full amount, your earned income needs to be at least $8,960 with no children, $13,450 with one child, and $18,880 with two or more children.

A family with two children earning $20,000, for example, is in the sweet spot: above the $18,880 needed for the full credit and below the point where the phase-out starts. That family gets the full $7,552.

The 2027 income limits

The credit is aimed at low and moderate incomes, so there is a ceiling. Once your income passes it, the credit is gone. The phase-out starts at $24,660 for single filers and heads of household with children, and at $32,170 for married couples filing jointly. With no children, it starts much earlier: $11,210 single, $18,730 joint.

The credit reaches zero at these income levels for 2027:

  • No children: $20,164 single, $27,684 joint
  • One child: $53,277 single, $60,787 joint
  • Two children: $60,519 single, $68,029 joint
  • Three or more children: $65,002 single, $72,512 joint

There is one more limit that catches people off guard. If your investment income — interest, dividends, capital gains and the like — is more than $12,600 in 2027, you cannot claim the credit at all, no matter how low your wages are. That limit was $12,200 for 2026.

Who qualifies for the earned income credit?

You need earned income from a job or self-employment, a valid Social Security number, and you must be a US citizen or resident alien for the whole year. You cannot be claimed as someone else’s dependent, and you cannot file as married filing separately, with a narrow exception for separated spouses.

If you have no qualifying children, you must also be between 25 and 64 years old and have lived in the United States for more than half the year.

A qualifying child must be related to you — your son or daughter, stepchild, foster child, sibling or a descendant of one of those — and must have lived with you in the United States for more than half the year. The age test is under 19 at the end of the year, under 24 if a full-time student, or any age if the child is permanently and totally disabled.

One thing the credit does not do: it does not count as income for most other benefits. Claiming it will not reduce your SNAP, Medicaid, SSI, TANF or housing assistance, and the refund itself is not counted as a resource for at least 12 months for most federal benefit programs.

How to claim it, and when the money arrives

Claim the credit on your federal return using Schedule EIC. If you do not normally file because your income is below the filing threshold, file anyway — the IRS cannot send you a credit you never claimed. Free help exists: IRS Free File, Volunteer Income Tax Assistance (VITA) sites and Tax Counseling for the Elderly all prepare returns with the credit at no charge.

One timing note. By law, the IRS cannot release refunds that include the earned income credit (or the additional child tax credit) before mid-February. For the return filed in early 2028, that means the earliest refunds land around the middle of February 2028, even if you file in January. The IRS calls this the PATH Act hold, and it is there to give the agency time to check returns against employer wage reports.

If you think you missed the credit in an earlier year, you are not necessarily out of luck. You can amend a return for up to three years, so a 2024 return can still be corrected through April 2028. The IRS estimates that about one in five eligible workers never claims the credit, leaving billions of dollars unclaimed every year.

FAQ: Earned income credit 2027

How much is the earned income credit in 2027?
The maximum is $8,496 with three or more qualifying children, $7,552 with two, $4,573 with one and $685 with no children. These are tax year 2027 figures, for the return filed in early 2028.

When do I get the 2027 earned income credit?
On the return you file in early 2028. Refunds that include the credit cannot be released before mid-February 2028 under the PATH Act hold, so expect the money from mid-February onward.

Can I claim the earned income credit with no children?
Yes, if you are 25 to 64, lived in the US for more than half the year, have earned income, and your income is below $20,164 single or $27,684 joint. The maximum credit without children is $685 in 2027.

Does the earned income credit reduce my SNAP or SSI?
No. The credit is not counted as income for most federal benefits, including SNAP, Medicaid, SSI, TANF and housing assistance, and the refund is not counted as a resource for at least 12 months.

What if I did not claim the EITC in a past year?
You can file an amended return for up to three years. A 2024 return can be amended through April 2028. Use Form 1040-X and Schedule EIC.

Sources

Leave a Comment