IRS Credit Tables 2020-2021

When preparing and submitting your taxes, you need to have at hand the IRS Credit Tables 2020-2021. Why? Because the maximum amounts for the presentation will depend on what the Internal Revenue Service (IRS or Internal Revenue Service) has decided.

We invite you to use the following tables for tax years 2020 and 2021 to find the maximum amounts of your adjusted gross income (also known as AGI or Adjusted Gross Income), the earned investment income and the amount of credit you can claim.

IRS Credit Tables

2020-2021 IRS Credit Tables with Maximum Amounts Listed

We leave you two tables that will serve you for the next tax season. Here you will find the maximum amounts for adjusted gross income, investment income and the cap for credits for the fiscal year to declare.

One of the tables corresponds to fiscal year 2020 -which is the current year to declare- and the other to fiscal year 2021, which you must present in 2022. We also leave you the table of fiscal year 2019 in case you need it.

Note: Note that all tables reflect the maximum amounts for individual returns (single, head of household, or widowed) and also for married or joint filers.

IRS 2020 Credit Table (Current Tax Year)
Claimed dependent children or relatives Maximum AGI for Single, Head of Household, or Widowed Taxpayers Maximum AGI for Married Taxpayers Filing Jointly
0 $15,820 $21,710
one $41,756 $47,646
two $47,440 $53,330
3 $50,594 $56,844

As for the investment income limit, it is calculated for tax year 2020 at $3,650 or less. As for the maximum amount of credit per child that a taxpayer can claim, it breaks down as follows:

  • No qualifying children: $538
  • With a qualifying child: $3,584
  • Two qualifying children: $5,920
  • With three or more qualifying children: $6,660
IRS 2021 Credit Table (Next Tax Year)
Claimed dependent children or relatives Maximum AGI for Single, Head of Household, or Widowed Taxpayers Maximum AGI for Married Taxpayers Filing Jointly
0 $15,980 $21,920
one $42,158 $48,108
two $47,915 $53,865
3 $51,464 $57,414

As for the investment income limit, it is calculated for tax year 2021 at $3,650 or less. As for the maximum amount of credit per child that a taxpayer can claim, it breaks down as follows:

  • No qualifying children: $543
  • With a qualifying child: $3,618
  • Two qualifying children: $5,980
  • With three or more qualifying children: $6,728
2019 IRS Credit Table (Prior Tax Year)
Claimed dependent children or relatives Maximum AGI for Single, Head of Household, or Widowed Taxpayers Maximum AGI for Married Taxpayers Filing Jointly
0 $15,570 $21,370
one $41,094 $46,884
two $46,703 $52,493
3 $50,162 $55,952

As for the investment income limit, it was calculated for tax year 2019 at $3,600 or less. As for the maximum amount of credit per child that a taxpayer can claim, it breaks down as follows:

  • No qualifying children: $529
  • With a qualifying child: $3,526
  • Two qualifying children: $5,828
  • With three or more qualifying children: $6,557

Note: Are you wondering why these maximums vary depending on the year? The answer is simple. Each year, the IRS adjusts these amounts for annual inflation. That is why you will see that each year has different maximum amounts as a cap.

In order to claim the earned income tax credit (known as EITC) you must meet certain requirements, What earn earned income and meet the AGI limit, in addition to taking into account the credit limits for the current, previous and next fiscal year. To do this, you can use the tables above or visit the official IRS website directly.

Tip: If you’re not sure if you’re eligible to claim the EITC tax credit, you can use the IRS Virtual Assistant.

Remember: If your 2019 work income was higher than 2020, you can use the amount reported in 2019 to calculate the 2020 EITC. This is a temporary relief that the federal government has launched through the approval of the Taxpayer Law Certainty and Disaster Tax Relief.

Types of Earned Income

What types of income can be declared as work and which cannot? If you have this question, you will discover the answer right away. First, let’s talk about the income that are not included in the category of labor income:

Now let’s get on with the income that could be considered as work income:

  • Benefits received during a strike of the union.
  • Declared wages, salaries and tips on Form W-2, box 1.
  • Certain disability benefits received before reaching the minimum retirement age.
  • Nontaxable Combat Pay, this in the case of members of the Armed Forces (Form W-2, box 12, code Q).
  • Self Earned Income, even if they come from a business or farm owned by the taxpayer or a religious ministry. This also includes self-earned income received by an employee earning income from work.
  • Income received from an employer, even if you didn’t withhold taxessuch as: running errands, completing a specific task, selling products online, providing professional services, self-employment, driving a car to provide personal transportation or delivery services.

If you need more information on this and other topics, be sure to see our Guide to tax deductions in the USA.

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