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?
01767
1 Replies
VolvoGirl
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).