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My investment income is under the eligibility limit to get the full Earned Income Tax Credit, but it's telling me it's over. What can I do?

 
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My investment income is under the eligibility limit to get the full Earned Income Tax Credit, but it's telling me it's over. What can I do?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-ea...

 

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

 

https://www.irs.gov/pub/irs-pdf/p596.pdf

 

Look at your 2024 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-retur...

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

My investment income is under the eligibility limit to get the full Earned Income Tax Credit, but it's telling me it's over. What can I do?

If the program specifically indicated that your investment income was more than $11,600 then you must have entered at least that much on your tax return.

Have you completed the Investment Income, Interest and Dividends sections?  If so what is the total on Form 1040 Lines 2a, 2b, 3b and 7?

Vanessa A
Employee Tax Expert

My investment income is under the eligibility limit to get the full Earned Income Tax Credit, but it's telling me it's over. What can I do?

Was your investment income less than $11,600?  If so, then yes, you still qualify for the earned income credit, if you otherwise qualify.  If it is saying your investment income is greater than $11,600 and it is not, then you need to go back and double check your entries. 

You say the FULL credit?  Does this mean you are getting some EITC? Do you have earned income?  When you say the full amount are you talking about the maximum credit available?  If so, not everyone gets the maximum credit available.  It is based on your earned income, filing status and number of qualifying children.  For instance, if you are single the credit is anywhere between $2 and $632 depending on your earned income.  The credit goes up with more income and then back down once you reach the peak until it fades out completely. 

 

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