Earned Income Credit computed for 2021, but not 2020

[daveythefatboy]

All the numbers are very similar for both years.  Turbo Tax computed the EIC for Fed and Maryland for 2021.  The calculation was not done for 2020.  The IRS did not correct the refund for 2020.  Am I missing something?

[MaryK4]

If you did not go through the TurboTax interview carefully, it is possible that you provided an answer that disqualified you.  The IRS would have processed your 2020 return as you filed it.  The IRS may send you a CP09 notice that you may be eligible for the Earned Income Credit but didn't claim it on your tax return, but that usually happens outside of tax season and they have specific algorithms that identify the people who may qualify.  

[daveythefatboy]

The return is for a friend of mine.  She is single, no children and pretty straight forward in terms of her status.

[RaifH · Accepted solution]

The Earned Income Credit was greatly expanded, particularly for people without children in 2021. One or more of these may have prevented your friend from claiming it in 2020:

• In 2020, people earning over $15,820 were not eligible for it, but in 2021 single taxpayers with no dependents could get the earned income credit as long as their gross income was under $21,430.
• You could not claim the Earned Income Credit in 2020 if you had more than $3,650 in investment income. That limit has been raised to $10,000 in 2021.
• In 2020, only people aged 25-65 could claim the  Earned Income Credit. Now, anyone who is not a dependent over the age of 19 is eligible.

TurboTax has supplied a complete rundown of the 2021 Earned Income Credit in this article.

[daveythefatboy]

Thank you.  The third bullet was the kicker.