I've redone my tax return 4 times, I'm a single mom, raising 2 kids, and I really am bawling. It's saying I don't qualify for EIC for the 1st time ever because of $155.28... this literally will break me this year. I have been waiting on my tax return to fix my transmission. And because of $155.28, my refund drops to $349. Please tell me there is a way to dispute this???
We cannot see your tax return or any of your information. It is not clear how $155.28 is causing a problem with your EIC. Please explain clearly.
Meanwhile:
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
https://www.irs.gov/pub/irs-pdf/p596.pdf
Look at your 2024 Form 1040 to see the child-related credits you received
PREVIEW 1040
Child Tax Credit line 19
Credit for Other Dependents line 19
Earned Income Credit line 27
Additional Child Tax Credit line 28
The EIC is based on your earned income. It is a bell curve so that the lowest income receives less EIC just like the highest income receives less EIC.
You can see the EIC tables on this IRS website for the Form 1040 instructions starting on page 46 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=46
No, there is no way to dispute this. If you were $155,28 away from getting the EITC, does that mean you earned around $56,000? If so, then if you were at the last dollar of the limit, your credit for 2 kids would only be $37.
The EITC is a bell curve credit meaning as your income goes up, your credit goes up until it hits the top of the bell curve, then as your income continues to go up, the credit goes back down. So, when you add in the additional income, your EITC will drop down or could even be eliminated if your total income is higher than the EITC limits.