Question

Why is my Earned Income Credit less this year than it was last year? My income increased slightly but I'm in the same tax bracket and nothing else changed.

Forum|Forum|5 years ago
February 15, 2021
1 reply
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My income was between $20-30k both years and nothing else has changed

TurboTax Deluxe Online

The Earned Income Tax Credit is based on income, not tax bracket. EITC increases as you make more money up to a certain level. After you hit the peak, the more money you make, the less EITC you get.

$20,000 - $30,000 is a big range. For example, if you are head of household with one child, you would receive $3,473 of earned income credit at $20,000 and $1,875 at $30,000. Your EITC goes down $8 for every extra $50 you make.

Check out the 1040 Tax and Earned Income Credit Tables (2020).

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