Federal credits
How much is the earned income credit?
The credit depends on three things: earned income, number of qualifying children and filing status. Here are the amounts at typical incomes, and the calculator gives yours with your state.
How much is your earned income credit?
Credits for tax year 2025, head of household, 2 qualifying children
$11,923
| Federal EITC | $7,152 |
| Michigan Earned Income Tax Credit for Working Families | $2,146 |
| Child tax credit, lowers your tax | $0 |
| Additional child tax credit, refundable | $2,625 |
Plateau: the federal credit is at its maximum; federal maximum $7,152, nothing from $57,310.
$1,775 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Michigan creditFor tax year 2025, filed in 2026, the federal earned income credit is worth up to $649 for a worker without a qualifying child, $4,328 with one child, $7,152 with two and $8,046 with three or more. Those maximums are reached at earned income of $8,490, $12,730 and $17,880, and kept until $23,350 for a single parent, or $30,470 for a married couple with children; above that, the credit falls. A single parent of two earning $20,000 receives the full $7,152; at $40,000, $3,640. Thirty-two states and the District of Columbia add a credit of their own, from 4% to 125% of the federal amount, and the child tax credit can add up to $1,700 a child in refundable form. For 2026 the maximums rise to between $664 and $8,231.
The federal credit at your income, by number of children
Federal EITC 2025, $22,000 earned, 2 children
$7,152
| No qualifying child | $0 |
| 1 child | $4,328 |
| 3 or more children | $8,046 |
Without a child, you or your spouse must be 25 to 64 at year end.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
Amounts at typical incomes, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 or more | 2 children, joint |
|---|---|---|---|---|---|
| $5,000 | $384 | $1,709 | $2,010 | $2,261 | $2,010 |
| $10,000 | $649 | $3,409 | $4,010 | $4,511 | $4,010 |
| $15,000 | $312 | $4,328 | $6,010 | $6,761 | $6,010 |
| $20,000 | $0 | $4,328 | $7,152 | $8,046 | $7,152 |
| $25,000 | $0 | $4,060 | $6,799 | $7,693 | $7,152 |
| $30,000 | $0 | $3,261 | $5,746 | $6,640 | $7,152 |
| $35,000 | $0 | $2,462 | $4,693 | $5,587 | $6,193 |
| $40,000 | $0 | $1,663 | $3,640 | $4,534 | $5,140 |
| $45,000 | $0 | $864 | $2,587 | $3,481 | $4,087 |
| $50,000 | $0 | $65 | $1,534 | $2,428 | $3,034 |
| $55,000 | $0 | $0 | $481 | $1,375 | $1,981 |
| $60,000 | $0 | $0 | $0 | $322 | $928 |
What the state adds
A state credit usually follows the federal one: Massachusetts and New Jersey add 40% of it, New York 30%, Michigan 30%, Indiana and Nebraska 10%. The District of Columbia matches 100% for 2025. California and Minnesota compute their own amounts, and Washington pays a fixed amount through an application. The calculator above is set to Michigan; choose your state to see its share, and the comparison page shows every state for the same household.
Why the amount can be lower than the table
Three things reduce the figure on a real return. AGI higher than earned income, from unemployment benefits or interest, can pull you further into the phase-out, because the credit is computed on both and the smaller is kept. Self-employment income counts after the deduction for half of the self-employment tax; see the self-employed page. And a child who fails one of the tests, often the residency test, changes your column.
Adding the child tax credit
Families with children under 17 also receive the child tax credit, $2,200 per child for 2025 under the 2025 tax law. The part that exceeds your income tax is refundable up to $1,700 per child, as the additional child tax credit, and is limited to 15% of earned income above $2,500. A parent of two with $20,000 of wages owes no income tax and receives $2,625 in that form. The calculator adds it; the child tax credit page explains the split.