EITC Rules Under Three Law Scenarios
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Earned Income Tax Credit (EITC) Parameters in 2011 |
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Pre-Bush Tax Policy |
Bush Tax Policy |
Tax Policy Under Pres. Obama’s Proposed Budget |
Tax Policy Under House Democratic Proposal |
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|
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% |
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|
Earned Income Threshold |
$12,780 |
$12,780 |
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|
Maximum Credit |
$5,751 |
$5,751 |
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Phase-Out Threshold |
$21,690 |
$16,690 |
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|
Phase-Out Limit |
$48,998 |
$43,998 |
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|
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 |