How much is the Earned Income Credit?

[ThomasM125]

The earned income credit varies by several factors, including your income, age, filing status and number of dependents. The maximum amount for 2020 is $3,584 if you have one child and up to $6,660 if you have three children or more.

You can read more about the earned income credit here:

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned...

[Hal_Al]

 The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $14,800 and $19,350 (Single with 2 or 3 children 2020) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce you EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2019 EIC table at:

https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf