How is the EIC calculated? And If didn't save any receipts from anything but I have some cash donations will I be audited?

Forum|Forum|4 years ago
February 20, 2022
2 replies
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TurboTax Live Self Employed

SweetieJean

Alumni - Champ

You really need to have receipts for cash donations.

EIC is calculated two ways: (1) based on Earned Income, and (2) based on AGI. You then get the lower of the two. It is also paid on a bell curve/pyramid. That is, it goes up as your income does to a certain point, but then comes down after that.

2021 Publication 596 (irs.gov)

ZoltanB45

Level 9

You will not be audited because you did not have receipts for charitable contributions. You might get audited If you listed thousands of dollars of charitable contributions or if you had a business and listed an absurd and unlikely amount of expenses there. Generally audits are random , except when it is obvious the taxpayer was being deceptive and fraudulent.