I was denied EIC on my 2021 return because TurboTax counted my Unemployment as part of my AGI

[Erinlynh]

I did some reading and it states that though I am required to pay taxes on the benefits I received, "unemployment benefits don’t count as earned income for the purpose of the EITC."

 Since my unemployment was factored in, the total amount put me over the limit and TurboTax would not allow me to apply for the EIC. My taxes were submitted yesterday...how can I get this adjusted so I can receive my EIC payment???   😩

[VolvoGirl · Accepted solution]

Unemployment doesn't count as earned income but it is part of your AGI.  And both your earned income AND AGI  have to be under the max.

EIC Qualifications
https://ttlc.intuit.com/community/credits-and-deductions/help/what-are-the-qualifications-for-the-ea...

IRS Pub 596
https://www.irs.gov/publications/p596

You might be able to use the lookback rule to use your 2019 income.

The special lookback rule will allow lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020 and 2021.

How to use the Lookback provision
https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-m...

[Erinlynh]

You're awesome! I appreciate the response and the helpful links!