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January 27, 2025
Question

I can't figure out why my EITC is limited. It looks like I make less than the cap with one qualifying child.

  • January 27, 2025
  • 2 replies
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My earned income is $48,016 and it says the max before you're capped is $49,084.

    2 replies

    January 27, 2025

    Your earned income (AND your Adjusted income) have to be both below $49,084 to qualify for the Earned Income with 1 qualifying child.

     

    Please read this TurboTax article for more information.

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    Employee
    January 27, 2025

    The earned income credit is calculated on a bell curve.  You do not get the maximum amount for any amount of income.   Since you are close to the limit, your EIC will be a fairly low amount---somewhere around $170.

     

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-earned-income-credit-eic-eitc/L7w4BFP32_US_en_US?uid=m62rmz09

     

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

     

    Look at the table for EIC on IRS Pub. 596---page 3

    https://www.irs.gov/pub/irs-pdf/p596.pdf

     

    **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.**