It looks like the earned income credit calculation is including interest income as earned credit. How can I correct that?

[Anonymous]

When I calculate the earned income credit from the 1040A instructions, it says to use the amount on Line 7, which in my case is just W2 wages.  When I compare the answer looking up that value with the value TurboTax is calculating, it looks like TurboTax is including the interest from Line 8 in the earned income.  Interest income is not earned income...

[jerry2000 · Accepted solution]

There are two calculations for your EITC. One of those is for your earned income which is Line 7. It is also calculated for your AGI, and that includes Line 8 and any other income. You get the lower calculated amount. That is correct and the way that the IRS requires that it be calculated.

[Anonymous]

I can believe it, but I can't make the irs.gov 1040A instructions correlate to what you're saying.  (page 46-48)

[Anonymous]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040a.pdf">https://www.irs.gov/pub/irs-pdf/i1040a.pdf</a>

[jerry2000]

The Turbotax calculation is absolutely correct. It has been tested and approved by the IRS. It is absolutely correct.

[Anonymous]

NEVERMIND - I figured out what I was missing!  Sorry...