What is Schedule EIC?
The Earned Income Credit (EIC) is a fully refundable credit for low-to-moderate income workers. It's the largest anti-poverty tax program in the federal system. The credit amount depends on earned income, AGI, filing status, and number of qualifying children.
Supported
Eligibility Requirements
| Requirement | Rule |
|---|
| Filing status | Any except Married Filing Separately |
| Investment income | Must not exceed $11,950 (2025) |
| Age (if no children) | Must be 25–64 |
| Qualifying child | Valid SSN, relationship, residency, and age tests |
2025 Maximum Credit Amounts
| Children | Max Credit | Phaseout Begins (Single) | Phaseout Begins (MFJ) |
|---|
| 3+ | ~$7,830 | ~$22,000 | ~$27,400 |
| 2 | ~$6,960 | ~$21,300 | ~$27,400 |
| 1 | ~$4,213 | ~$21,300 | ~$27,400 |
| 0 | ~$632 | ~$10,600 | ~$16,800 |
How PaisaTax Handles It
- Fully computed — the engine uses the IRS EITC lookup tables based on earned income, AGI, and number of qualifying children
- Gated by Form 8862 — if a prior-year EIC disallowance exists, Form 8862 must allow it
- MFS disqualification — automatically zeroed for MFS filers
- Refundable — flows to Form 1040 Line 27, can result in a refund even with zero tax liability
