There are two ways to calculate the amount of your EITC. First, you can calculate the credit yourself using the earned income credit worksheet and earned income credit table found in the 1040 Instruction Booklet. When filing Schedule EIC and claiming the credit with a qualifying child or children, it is very important that you find your credit amount in the appropriate column for your filing status and number of qualifying children on the earned income credit table. Second, you can choose to have the IRS figure your credit amount for you if you do not wish to calculate the credit yourself. You can do this by entering "EIC" on line 64a of Form 1040.
The amount of EITC you qualify for increases with the number of qualifying children (up to three) and with the amount of your earned income up to $52,427 and can result in a credit of up to $6,143 for three children (lesser amounts for one or two children; all amounts are for 2014).
Of course, when you use TurboTax to prepare your taxes, we’ll ask you simple questions in plain English, then handle all the calculations for you. We’ll tell you exactly how much of the EITC you qualify to receive.