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March 21, 2020
Question

Earned Income Credit

  • March 21, 2020
  • 1 reply
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I hope this makes sense...but I have 2 kids to claim, and head of household. And this year I worked a ton of overtime and I make too much to claim EIC. Which is going to crush my normal routine I do with my taxes which is saving up for through the year. I believe I made roughly 1200$ too much. I’ve never had this happen so I’m not sure how it works...but are there any deductions I can use to lower the income and claim EIC? I pay child care and read about the child care credit, I didn’t know if that would help? May seem like a stupid question but I know zero about taxes!! Is there anything I can do to still qualify for EIC? Any help would be greatly appreciated!! Thank you 

1 reply

Employee
March 21, 2020

No, you cannot lower your AGI to get earned income credit.  And please understand that if you were on the very edge of qualifying for EIC the amount you would have gotten would have been very little due to the bell curve on which the EIC is calculated.

 

if you are paying for childcare so you can work you should be entering that.  Go to Federal>Deductions and Credits>You and Your Family>Child and Dependent Care Credit.  You need the Social Security number or Tax ID of your childcare provider.

 

 

 

There are several child-related credits you *may* get if you have a dependent child and if you have income earned from working.The amount earned by working has a major effect on how much you receive for the child-related credits.

You might be getting the Child Tax Credit--that is not all a refund--it lowers the tax you owe, up to $2000 per child, but if you do not owe tax then you may not get the full amount of CTC.  In some cases, you could qualify for the "Additional Child Tax Credit" which is a refundable credit, and would increase your refund.  If you qualify for this credit, TurboTax calculates and automatically adds it to your refund.

You might be able to claim the child and dependent care credit if you paid someone to take care of your child so you could work. This is not a refundable credit, so it will not be in your refund.  It can lower the tax you owe.

You might qualify for Earned Income Credit, which is a refundable credit if you worked and earned income. The EIC is based on the amount you earned.  If you do qualify for EIC, TurboTax automatically calculates the amount and adds it to your refund.

 

Look at your 2019 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 13a

Credit for Other Dependents line 13a

Earned Income Credit line 18a

Additional Child Tax Credit line 18b

Child and Dependent Care Credit line 18d

 

 

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-for-other-dependents

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-eic-or-eitc

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-credit

 

**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.**