Solved: Last year we received approx 5300 in eic this year we only receive 1860. Can you explain why? We earned about 14000 more this year but have the same amount of children.
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Last year we received approx 5300 in eic this year we only receive 1860. Can you explain why? We earned about 14000 more this year but have the same amount of children.

 
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Alumni

Last year we received approx 5300 in eic this year we only receive 1860. Can you explain why? We earned about 14000 more this year but have the same amount of children.

The EIC curve is shaped like a triangle, it starts at zero and as you earn more money the EIC increases, up to a point where the curve turns down again and once your income is above that point, the more you earn the less EIC you get until when you get to the EIC maximum income, your EIC is zero. So, your additional $14,000 in income put you over the top of the EIC curve and on to the down side where as you earn more, you get less EIC.

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Alumni

Last year we received approx 5300 in eic this year we only receive 1860. Can you explain why? We earned about 14000 more this year but have the same amount of children.

The EIC curve is shaped like a triangle, it starts at zero and as you earn more money the EIC increases, up to a point where the curve turns down again and once your income is above that point, the more you earn the less EIC you get until when you get to the EIC maximum income, your EIC is zero. So, your additional $14,000 in income put you over the top of the EIC curve and on to the down side where as you earn more, you get less EIC.

View solution in original post

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