Families With Two Kids Could Claim Up to $7,316 Through the EITC in 2027

• Author: Jessica Williams
• Posted: 2026-10-20

Tax season is still months away, but one family tax credit is already getting bigger.

The Earned Income Tax Credit (EITC) is rising for the 2026 tax year, which you'll file in early 2027.

What's the headline number?

For families with two qualifying children, the credit is worth up to $7,316, up from $7,152 last year.

That's a maximum, not a promise.

The amount you actually get depends on your income, filing status, and whether you meet the IRS rules.

When do these rules apply?

The 2026 adjustments generally apply to tax returns filed in 2027.

The new figures come from Revenue Procedure 2025-32, the IRS guidance that sets the inflation-adjusted amounts for the 2026 taxable year.

How much income do you need?

The credit grows as your earnings rise, until you hit a "sweet spot."

For two children, that earned-income amount is $18,290.

After that, the credit stays at its maximum for a while.

Then it starts to shrink as income climbs. The credit fully phases out at $65,899 for married couples filing jointly and $58,629 for everyone else.

Here's how the two limits compare:

• Married filing jointly: the credit begins to shrink at $31,160 and ends at $65,899.
• All other filers: the credit begins to shrink at $23,890 and ends at $58,629.

Is there an investment income limit?

Yes, and it's easy to overlook.

The credit is disallowed if your investment income goes above $12,200.

Who can be a "qualifying child"?

Not every child you support counts.

According to the IRS, a qualifying child must meet the age, residency, and joint return tests.

A few other basics apply:

• The child must live with you for more than half the year.
• The child must have a Social Security number.
• Only one person can use the same child to claim the EITC.

You'll also need to file Schedule EIC with your return if you claim a qualifying child.

Can you get it if you owe no tax?

Yes, because the EITC is refundable.

That means an eligible taxpayer can receive money back even if the credit is more than the federal income tax owed.

Can you stack it with other credits?

Often, yes.

Families may also qualify for the Child Tax Credit.

For 2026, it's worth up to $2,200 per child, with up to $1,700 per child refundable.

When will the money arrive?

Expect a wait, even if you file early.

Federal law bars the IRS from issuing refunds that include the EITC before mid-February.

The exact 2027 date hasn't been announced yet.

Credit Karma's guide notes that the IRS expected most early filers who e-filed with direct deposit and had no issues to be paid by early March last year.

Quick checklist before you file

• Gather your W-2s and any self-employment income records.
• Confirm Social Security numbers for everyone on the return.
• Check that your children meet the age, residency, and relationship tests.
• Look over your investment income.
• File electronically with direct deposit if you can.

This article is for general information and isn't tax advice. For your own situation, check IRS.gov or talk to a tax professional.

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