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April 12, 2021
Question

Can anyone tell me why my EIC is $2000 less than it has been every other year?

  • April 12, 2021
  • 1 reply
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1 reply

MaryM428
April 12, 2021

The earned income tax credit subsidizes low-income working families. The credit equals a fixed percentage of earnings from the first dollar of earnings until the credit reaches its maximum. The maximum credit is paid until earnings reach a specified level, after which it declines with each additional dollar of income until no credit is available.
 

When the earned income credit changes, it can be because your income has changed, or one of your dependents turned 17 during 2020.  

In 2020 you have the option to use your 2019 earned income for the EITC, if that results in a higher amount of EITC.