IRS Confirms Increase in Earned-Income Credit to $8,231: Who Can Receive the Maximum in 2027

The U.S. Internal Revenue Service has confirmed new Earned Income Tax Credit amounts for tax year 2026, with a maximum of $8,231 for eligible taxpayers with three or more qualifying children.

The increase comes from the $8,046 maximum set for tax year 2025. It does not mean that everyone who files Form 1040 will receive an automatic payment. The final credit depends on income, filing status and the number of qualifying children.

The maximum credit is $7,316 for taxpayers with two qualifying children, $4,427 for those with one, and $664 for those without qualifying children. The amounts apply to income earned in 2026 and generally will be claimed on federal returns filed in 2027.

The IRS said the credit phases out at different income levels. For taxpayers with three or more qualifying children, it disappears at adjusted gross income, or earned income if higher, of $62,974 for most filing statuses and $70,244 for married couples filing jointly. The corresponding limits are $58,629 and $65,899 for two children, and $51,593 and $58,863 for one child.

Investment income also cannot exceed $12,200 in 2026. Eligible taxpayers must file Form 1040 or Form 1040-SR, even if they would not normally have to file a return. Those claiming the credit for qualifying children must also attach Schedule EIC.