Question

Earned Income Credit

Forum|Forum|4 years ago
April 18, 2022
1 reply
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I am currently working on my son's tax return. His income for 2021 is $14,389. He did not qualify for earn income credit (eic) for this year filing because according to the instruction on Turbo Tax on earn income credit, it now compares the AIG from 2019 to 2021 AIG. His AIG for 2019 was $8,687 and 2021 is $14,389, which according to the program will not qualify him for EIC this year because AIG for 2021 should be lower than 2019 AIG. I then searched the IRS website and their EIC states that for single no qualifying dependent, AIG should not be over $21430 and will qualify for $1,502 EIC. They do not referenced to the 2019 AIG. I tried calling them, but because today is the filing deadline is impossible to reach to anyone there. Please give me clarification on this.

X

xmasbaby0

Employee

Using the 2019 "lookback" is a choice--not a requirement. You can choose whichever tax year earned income amount gives you the best amount of EIC. Stop trying to use 2019 if it is not to his advantage.

**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.**

D

DianeW777

You are allowed to use the 2019 adjusted gross income (AGI) if it is higher than the 2021 AGI. Check the basic and additional qualifiers to see if your son is eligible.

Election to use prior-year earned income
You can elect to use your 2019 earned income to figure your 2021 earned income credit (EIC) if your 2019 earned income is more than your 2021 earned income.

If his only income is the earned income, and there is no other income on the tax return, and your son is not claimed by you and/or his father, then he would qualify for some earned income tax credit (EITC).

Single, no dependents - $21,430. This means his AGI cannot be more than this amount.

You are eligible to claim the EITC without a qualifying child if you meet all the following rules. You (and your spouse if you file a joint tax return) must:

Meet the EITC basic qualifying rules
Have your main home in the United States for more than half the tax year
- The United States includes the 50 states, the District of Columbia and U.S. military bases. It does not include U.S. possessions such as Guam, the Virgin Islands or Puerto Rico

Not be claimed as a qualifying child on anyone else's tax return

Be at least age 18 at the end of the tax year (usually Dec. 31)
- The minimum age to claim the EIC is generally age 19; however, if you are a qualified former foster youth or a qualified homeless youth, you need to be at least age 18.
- If you are a specified student (other than a qualified former foster youth or a qualified homeless youth), you need to be at least age 24.

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