Deductions & credits

@VolvoGirl @Sunflowermomma88 - that is what I figured...... it's about the 2019 earned income.... but here is the thing...

 

if your 2021 earned incomeis less than this table then it MAY increase the EITC  that was already calculated .  But if the taxpayer didn't enter the 2019 earned income when preparing the return, ther was no way for Turbo Tax to know that.   So I wonder if these are the situations where the IRS is sending out these letters. 

 

If your 2021 earned income is greater than this table, looking back to 2019 is not going to change whatever was calculated for EITC already.  Hopefully, the IRS is not sending out letters for these situations because it creates false hope that EITC dollars will be mailed to the taxpayer (let alone the thought that TT calculated the EiTC incorrectly) 

 

@VolvoGirl This table is just the math behind the law: if your 2019 earned income is greater than your 2021 earned income AND it creates a better EITC tax credit, you can use 2019 earned income to determine the credit.  Above these 2021 income numbers that will not be true.  Below these numbers is MAY be true (but it MAY not be - the math is complex)

 

 

 

Single / HOH/ MFS / Qual Widow

Married – Joint

0 Children

$9,800

 $9,800

1 Child

$10,600

 $10,600

2 Children

 $14,950

 $14,950

3 Children

 $14,950

 $14,950