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Prosperics

US BENEFITS CALCULATOR

Prosperics' US Benefits Calculator is a free eligibility estimator for the EITC, Child Tax Credit, SNAP, ACA premium subsidies, Medicaid and WIC from your household size, state and income, and it shows how pre-tax IRA, HSA and 401(k) contributions can increase benefits by lowering your MAGI.

EITC Is a Refundable Credit

The Earned Income Tax Credit can result in a refund even if you owe no tax. With 3+ children, the maximum credit exceeds $7,800. File your return to claim it — many eligible families miss this benefit.

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The Earned Income Tax Credit is the federal government's largest anti-poverty program delivered through the tax code. Unlike most credits, the EITC is fully refundable — you receive it even if you owe no tax. In 2025, the maximum credit ranges from $649 (no children) to $8,046 (3+ children); for 2026 it rises to $664 and $8,231. The credit phases in as earned income rises, plateaus, then phases out. Understanding these zones is key to maximizing your benefit.

Key Takeaways

  • ✓Refundable credit — you get a refund even with $0 tax liability
  • ✓Phases in at 7.65% to 45% depending on number of children
  • ✓Phase-out starts at $22,090 (single) / $29,290 (joint) for 1+ children
  • ✓Married Filing Separately is ineligible for EITC

The Child Tax Credit provides $2,000 per qualifying child under age 17. The phase-out threshold is generous: $200,000 for single filers and $400,000 for married filing jointly. Below these thresholds, you receive the full credit. The Additional Child Tax Credit (ACTC) makes up to $1,700 per child refundable, calculated as 15% of earned income above $2,500.

Key Takeaways

  • ✓$2,000 per qualifying child under 17
  • ✓Phase-out: $200K single, $400K joint — $50 reduction per $1,000 over
  • ✓Up to $1,700 refundable as Additional CTC
  • ✓Must have earned income above $2,500 for refundable portion

SNAP eligibility requires passing both a gross income test (130% FPL) and a net income test (100% FPL). Net income is calculated by applying deductions: a standard deduction of $198, a 20% earned income deduction, and a shelter/utility deduction capped at $672 for excess shelter costs above half your adjusted income. Your benefit equals the maximum allotment minus 30% of net income.

Key Takeaways

  • ✓Gross income must be ≤130% of Federal Poverty Level
  • ✓Net income must be ≤100% FPL after deductions
  • ✓Standard deduction: $198; shelter deduction capped at $672
  • ✓Benefit = max allotment - 30% of net income

Marketplace premium subsidies are calculated based on your income as a percentage of the Federal Poverty Level. The premium cap scales from about 2% of income at 150% FPL up to 8.5% at 400%+ FPL. Your subsidy equals the benchmark silver plan premium minus your expected contribution. Lowering your MAGI through pre-tax deductions directly increases your subsidy amount.

Key Takeaways

  • ✓Available for incomes from 100% to 400%+ FPL
  • ✓Premium cap: 2% at 150% FPL to 8.5% at 400%+ FPL
  • ✓Based on second-lowest-cost silver plan in your area
  • ✓Pre-tax deductions (IRA, HSA, 401k) lower MAGI and increase subsidies

Pre-tax contributions to 401(k), traditional IRA, and HSA create a powerful leverage effect. By lowering your MAGI, you simultaneously get tax savings AND increased benefit eligibility. Near benefit phase-out thresholds, a $1,000 deduction can yield hundreds of dollars in additional EITC, SNAP eligibility, and ACA subsidies. This effective return is on top of the tax deduction itself and the retirement savings growth.

Key Takeaways

  • ✓401(k): up to $23,500 ($31,000 if 50+) reduces MAGI
  • ✓IRA: up to $7,000 ($8,000 if 50+) reduces MAGI
  • ✓HSA: up to $4,300 individual / $8,550 family reduces MAGI
  • ✓Near phase-out thresholds, effective returns can exceed 30-50%

Facts last reviewed:

The EITC is a refundable federal tax credit for low-to-moderate income workers. With 3+ qualifying children, the maximum credit is $8,046 for 2025 ($8,231 for 2026). It phases in with earned income and phases out at higher income levels. Filing status and number of children determine the credit amount and thresholds.

The CTC provides $2,000 per qualifying child under age 17. It phases out starting at $200,000 (single) or $400,000 (married filing jointly), reduced by $50 per $1,000 over the threshold. Up to $1,700 per child is refundable as the Additional Child Tax Credit (ACTC) for lower-income families.

SNAP requires passing both a gross income test (≤130% of Federal Poverty Level) and a net income test (≤100% FPL). Net income is calculated after a standard deduction ($198), earned income deduction (20%), and shelter/utility deductions (capped at $672). Your benefit amount is the maximum benefit minus 30% of your net income.

ACA (Marketplace) premium subsidies are based on your income as a percentage of the Federal Poverty Level. Your expected premium contribution ranges from about 2% of income at 150% FPL to 8.5% at 400%+ FPL. The subsidy equals the benchmark silver plan cost minus your expected contribution.

Under the ACA, states can expand Medicaid to cover adults with incomes up to 138% of FPL. Currently 39 states have expanded. In non-expansion states, eligibility thresholds are much lower. The OBBBA adds 80-hour/month work requirements for expansion enrollees.

Contributions to 401(k), traditional IRA, and HSA reduce your Modified Adjusted Gross Income (MAGI). Since benefit eligibility and amounts are based on MAGI or gross income, lowering your MAGI can increase EITC, keep you eligible for SNAP, increase ACA subsidies, and maintain Medicaid eligibility. This creates a "leverage effect" where deductions yield both tax savings and increased benefits.

Facts last reviewed:

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