How do you calculate the earned income credit? To calculate your earned income credit you assess if your AGI is greater than your earned income, the difference being your earned income tax credit.

The earned income tax credit has been around since 1975 ... “but the way the EITC calculation works there is actually an incentive to increase income in certain income bands.

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit that can reduce the amount of taxes you owe and may also give you a refund. The EITC is intended to help low- to ...