tomaszekx
Returning Member

Deductions & credits

Thank you for getting back to me on it so quickly.

 

I understand about the "lookback" option and I'm using it to qualify for the EIC, but I don't understand why is TurboTax taking into account my unemployment pay from 2020? My understanding was that unemployment pay should not affect EIC amount and based on TurboTax calculations it clearly does, as if I change the number on my unemployment for year 2020 form 1098-G, it drastically changes my EIC.

(for example I change the number from $8000 to $1000 on my unemployment form 1098-g, it changes the EIC from $2356 to $4668). Why is the unemployment pay affecting the EIC allowance?