What is the EITC and What's New for 2026?

What is the EITC and What's New for 2026?. The EITC is a refundable tax credit designed for low-to-moderate-income workers. Eligibility boils down to a few key tests. First, you must have earned income—whether that is from a W-2 job or self-employment income you report on a Schedule C or Schedule F, such as those Farmer Bridge Assistance payments we covered in a recent upload.
Next are the income ceilings. To qualify, a family's adjusted gross income must fall under certain limits. For a married couple filing jointly with three or more children, that maximum ceiling is projected to be $70,244. But watch out for the phase-outs. For that same family, the credit begins to decrease once your income crosses the $31,160 mark.
Another crucial hurdle is investment income. If your investment income—like dividends or capital gains—exceeds a projected $12,200 in 2026, you are completely disqualified from the EITC. This is a hard line, so you and your spouse will need to check those joint 1099s carefully."

Видео What is the EITC and What's New for 2026? канала Taxcare Pro