Earned Income Tax Credit (EITC) Parameters in 2011 Pre-Bush Tax Policy Bush Tax Policy Tax Policy Under Pres. Obama’s Proposed Budget Tax Policy Under House Democratic Proposal 3 or More Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Credit Rate Same as credit for 2 or more children Same as credit for 2 or more children Same as credit for 2 or more children Same as credit for 2 or more children 45.00% 45.00% Same as credit for 2 or more children Same as credit for 2 or more children Phase-out Rate 21.06% 21.06% Earned Income Threshold $12,780 $12,780 Maximum Credit $5,751 $5,751 Phase-Out Threshold $21,690 $16,690 Phase-Out Limit $48,998 $43,998 2 or More Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Credit Rate 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Phase-Out Rate 21.06% 21.06% 21.06% 21.06% 21.06% 21.06% 21.06% 21.06% Earned Income Threshold $12,780 $12,780 $12,780 $12,780 $12,780 $12,780 $12,780 $12,780 Maximum Credit $5,112 $5,112 $5,112 $5,112 $5,112 $5,112 $5,112 $5,112 Phase-Out Threshold $16,690 $16,690 $19,870 $16,690 $21,690 $16,690 $21,690 $16,690 Phase-Out Limit $40,964 $40,964 $44,144 $40,964 $45,964 $40,964 $45,964 $40,964 1 Child Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Credit Rate 34.00% 34.00% 34.00% 34.00% 34.00% 34.00% 34.00% 34.00% Phase-Out Rate 15.98% 15.98% 15.98% 15.98% 15.98% 15.98% 15.98% 15.98% Earned Income Threshold $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 Maximum Credit $3,094 $3,094 $3,094 $3,094 $3,094 $3,094 $3,094 $3,094 Phase-Out Threshold $16,690 $16,690 $19,870 $16,690 $21,690 $16,690 $21,690 $16,690 Phase-Out Limit $36,052 $36,052 $39,232 $36,052 $41,052 $36,052 $41,052 $36,052 No Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Credit Rate 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% Phase-Out Rate 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% Earned Income Threshold $6,070 $6,070 $6,070 $6,070 $6,070 $6,070 $6,070 $6,070 Maximum Credit $464 $464 $464 $464 $464 $464 $464 $464 Phase-Out Threshold $7,590 $7,590 $10,770 $7,590 $12,590 $7,590 $12,590 $7,590 Phase-Out Limit $13,660 $13,660 $16,840 $13,660 $18,660 $13,660 $18,660 $13,660 Investment Income Threshold (for EITC) $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150 $3,150
