Someone decided that unemployment was household income, and can count for or against the Earned Income Credit.
There are people on the other side, GETTING the EIC BECAUSE they can claim the unemployment as earned income for the credit.
It is not considered "Earned Income" in respect that people do not pay FICA or self-employment tax on it.
I think the INTENT was to allow MORE people to get the credit and to compensate for the jobs lost because of Covid. Otherwise someone on unemployment, who normally works and did work part of 2021, might have too low an income and not get any credit.
It doesn't work out for everyone.
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