ErnieS0
Expert Alumni

Get your taxes done using TurboTax

@ anessanight90 The Earned Income Tax Credit is calculated on earned income. Interest income is not considered earned income. The IRS considers earned income to be

  • Wages, salaries, tips, and other taxable employee compensation;
  • Union strike benefits;
  • Disability retirement benefits received prior to minimum retirement age;
  • Net earnings from self-employment

You do not say what state you live in. States generally use the federal EIC amount reported on Schedule EIC, so you would not be able to cherry pick a different year for state. If your federal EIC is $0 for 2019 and 2020 then your state EIC will probably be $0 as well. Most state EIC calculations give you a percentage of federal EIC.

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