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February 17, 2021
Question

What is the amount per child this year for the earned income credit. I have two kids and am only getting 4000

  • February 17, 2021
  • 2 replies
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2 replies

Employee
February 17, 2021

There is no set amount "per child"   for EIC.  The EIC is based on the amount of income you earned by working and by whether you are Single, Head of Household or filing a joint return.   However, there is a 2019 "lookback" that you need to explore if your 2020 income was a lot less due to the pandemic.

 

Many people had lower incomes during the pandemic in 2020 due to reduced work hours, layoffs, etc.  Or they received unemployment benefits.   These factors affect how much earned income credit and additional child tax credit you can get on your 2020 tax return and affect your 2020 refund.

 

There is a “lookback” option that allows you to use your 2019 amounts for earned income credit or child tax credit.   You can choose whether to use your 2019 amount or your 2020 amount.  Choose whichever amount gives you a better tax refund for your 2020 refund.

 

You can see this and choose in the earned income credit section  in Deductions and Credits. 

 

You still MUST enter all of your 2020 income into your 2020 tax return, including any unemployment you received.

 

Please follow these steps in TurboTax:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type "EIC"
  3. Click on “Jump to EIC”
  4. Answer the questions until you reach the screen "Do you want to use last year’s earned income?"
  5. Note your current refund amount using your 2020 earned income at the top of the screen.
  6. Click "Yes", enter your "2019 Earned Income" if the field is blank and click "continue".
  7. Compare the new refund amount using your 2019 earned income with the previously noted refund amount using your 2020 earned income.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DMarkM1
February 17, 2021

It appears you may be mixing credits.  The Child Tax Credit maximum is $2000 per child so $4000 for two that you are probably seeing.  The earned income credit is a varying amount according to your earned income for the year. 

 

Two children allows you to qualify for some amount of earned income credit at a higher adjusted gross income (see below).  Here is a link to use to see if you qualify. 

 

TurboTax will make all the calculations for you based on you answers and entries on your tax return.

 

Your adjusted gross income (AGI) must be less than:

  • $50,954 ($56,844 for married filing jointly) if you have three or more qualifying children,

  • $47,440 ($53,330 for married filing jointly) if you have two qualifying children,

  • $41,756 ($47,646 for married filing jointly) if you have one qualifying child, or

  • $15,820 ($21,710 for married filing jointly) if you don't have a qualifying child.

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