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EITC is not calculating properly

TurboTax online is not calculating AGI properly for the Earned Income Tax Credit. It is adding in unemployment compensation when this should be excluded per IRS rules.

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1 Reply
DanaB27
Expert Alumni

EITC is not calculating properly

Please be aware that to claim the Earned Income Tax Credit (EITC), you must have what qualifies as earned income and meet certain adjusted gross income (AGI).

 

Yes, unemployment is excluded from the earned income but it is included to calculate the AGI.

 

Please see What are the qualifications for the Earned Income Credit (EIC or EITC)? , IRS Earned Income and Earned Income Tax Credit , and Do I Qualify for Earned Income Credit While on Unemployment? for additional information.

 

[Edited 2/9/2021 | 1:03PM PST]

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