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Level 2
posted Apr 14, 2025 12:27:55 PM

Turbotax says I qualify for eitc because my total earned income is $18,248. However, my actual earned income after expenses is $19,634.92. Is this an error? How do I fix?

I am self employed and my adjusted gross income is $19,634.92. I should not qualify for Earned Income Tax credit but Turbotax is saying I do and when I click on "Why you're getting this amount" it says it's because my total earned income is $18,248. How is this calculated? Is this an error?

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1 Replies
Level 15
Apr 14, 2025 12:37:05 PM

Got it.  Your schedule C net profit was 19,634.92?  The self employment tax on that is $2,774.32.   Earned income is your Net Profit minus 1/2 of the SE tax.  19,634.92 - 1,387.16 is  18,247.76 (rounds up to 18,248).