Phase Out of the Credit
The EIC can't exceed the excess (if any) of:
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The credit percentage times the earned income amount over
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The phase-out percentage times the amount by which the taxpayer's modified AGI (or, if greater, the taxpayer's earned income) exceeds the phase-out amount.
Phase-Out Percentage
The phase-out percentage, phase-out amount and completed phase-out level (level where the credit is totally phased out) depends on the number of “qualifying children” the taxpayer has. The amounts are shown in the adjacent table.
Credit Treated as Overpayment
If the amount allowable as an earned income credit exceeds the tax, the excess is considered an overpayment. Thus, a taxpayer eligible for the credit can get a refund that is more than the amount of tax withheld.
