By situation
Earned income credit with two qualifying children
Two children is the column where the credit is largest relative to income: 40 cents per dollar earned, up to more than seven thousand dollars.
Earned income credit with two children
Credits for tax year 2025, head of household, 2 qualifying children
$12,863
| Federal EITC | $6,589 |
| Massachusetts Earned Income Tax Credit | $2,636 |
| Child tax credit, lowers your tax | $238 |
| Additional child tax credit, refundable | $3,400 |
Phase-out: each extra dollar lowers the federal credit; federal maximum $7,152, nothing from $57,310.
$762 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Massachusetts creditWith two qualifying children, the federal earned income credit for 2025 equals 40% of earned income until it reaches $7,152 at $17,880 of earnings. It stays there until $23,350 for a single parent or $30,470 on a joint return, then falls by 21.06 cents per dollar, ending at $57,310 or $64,430. For 2026, Rev. Proc. 2025-32 raises the maximum to $7,316, reached at $18,290, with the end points at $58,629 and $65,899. A single parent of two with $26,000 of wages in 2025 receives $6,589 from the IRS, 40% of that again in Massachusetts, and $3,400 of additional child tax credit, which is the refundable cap of $1,700 per child. Two children under 17 also mean $4,400 of child tax credit in all once enough income tax is owed.
What does $1,000 more in wages do to your credit?
Change in the 2025 federal credit
-$211
| Credit now | $5,325 |
| With $1,000 more | $5,114 |
| Credit ends at | $57,310 |
In the phase-out, the credit falls as income rises, but never by more than the extra pay.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
Two children, federal credit by income
| Earned income | 2025 single or HOH | 2025 joint | 2026 single or HOH | 2026 joint |
|---|---|---|---|---|
| $5,000 | $2,010 | $2,010 | $2,010 | $2,010 |
| $10,000 | $4,010 | $4,010 | $4,010 | $4,010 |
| $17,880 | $7,152 | $7,152 | $7,150 | $7,150 |
| $23,350 | $7,147 | $7,152 | $7,316 | $7,316 |
| $28,000 | $6,167 | $7,152 | $6,445 | $7,316 |
| $32,000 | $5,325 | $6,825 | $5,603 | $7,134 |
| $36,000 | $4,483 | $5,982 | $4,760 | $6,291 |
| $40,000 | $3,640 | $5,140 | $3,918 | $5,449 |
| $45,000 | $2,587 | $4,087 | $2,865 | $4,396 |
| $50,000 | $1,534 | $3,034 | $1,812 | $3,343 |
| $55,000 | $481 | $1,981 | $759 | $2,290 |
The phase-out in practice
Above $23,350, every $1,000 of extra income takes $211 off the federal credit, until it is gone. At $40,000, a single parent of two has $3,640 left. The mini-tool below shows the effect of a raise at your income. The fall also reduces every state credit that is a share of the federal one, so in Massachusetts the loss per $1,000 is about $295.
Two children and a state
For this family, the state credit makes a large difference. At the 2025 maximum, Massachusetts and New Jersey add $2,861, New York $2,146 before the household credit, Colorado $3,576 for 2025, and the District of Columbia $7,152. Wisconsin adds 11%, $787. The state comparison shows every state for your own income.
When one child turns 19
If one of the two children turns 19 and is not a full-time student, the family moves to the one-child column, and the maximum drops from $7,152 to $4,328 for 2025. A student under 24 still counts. A permanently and totally disabled child counts at any age. The qualifying child page has the details.