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March 15, 2025
Question

My investment income is under the eligibility limit to get the full Earned Income Tax Credit, but it's telling me it's over. What can I do?

  • March 15, 2025
  • 3 replies
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    3 replies

    Employee
    March 15, 2025
    **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.**
    DoninGA
    Employee
    March 15, 2025

    If the program specifically indicated that your investment income was more than $11,600 then you must have entered at least that much on your tax return.

    Have you completed the Investment Income, Interest and Dividends sections?  If so what is the total on Form 1040 Lines 2a, 2b, 3b and 7?

    March 15, 2025

    Was your investment income less than $11,600?  If so, then yes, you still qualify for the earned income credit, if you otherwise qualify.  If it is saying your investment income is greater than $11,600 and it is not, then you need to go back and double check your entries. 

    You say the FULL credit?  Does this mean you are getting some EITC? Do you have earned income?  When you say the full amount are you talking about the maximum credit available?  If so, not everyone gets the maximum credit available.  It is based on your earned income, filing status and number of qualifying children.  For instance, if you are single the credit is anywhere between $2 and $632 depending on your earned income.  The credit goes up with more income and then back down once you reach the peak until it fades out completely. 

     

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