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New Member
posted Apr 7, 2021 3:05:05 PM

Hi Have a K1 form 1065 partners income of $33000 for 2020. It says I cant get EIC because investment over $3600 please explain/

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2 Replies
Expert Alumni
Apr 7, 2021 3:20:49 PM

No. The IRS states in this website in Rule 6—Your Investment Income Must Be $3,650 or Less. if more, you can't claim the credit.

Level 15
Apr 7, 2021 3:42:03 PM

The EIC was originally designed  to help lower and middle income working taxpayers help offset payroll taxes on their income. Congress instituted some restrictions (such as the investment income limits) so that those who had significant other sources of (primarily unearned) income would not benefit.