You'll need to sign in or create an account to connect with an expert.
That's certainly possible.
Although you have the choice of using your earned income from either 2019 or 2020 for your 2020 Earned Income Credit calculation, that's only one part of the computation.
The Earned Income Credit is computed by comparing two amounts in the IRS's EIC table -- an amount based on earned income, and an amount based on your 2020 Adjusted Gross Income (AGI). Whichever of these two amounts from in the table yields the smaller EIC amount will be used.
So while you might use your earned income from 2019, your AGI from 2020 still has to be used in making the comparison. In your situation, your AGI is apparently producing a smaller EIC amount than either your 2019 or 2020 earned income does, and that's what the formula is using.
Please see Worksheet A -- 2020 EIC -- Line 27 in 2020 Instructions for Forms 1040 and 1040-SR to see how the computation works.
That's certainly possible.
Although you have the choice of using your earned income from either 2019 or 2020 for your 2020 Earned Income Credit calculation, that's only one part of the computation.
The Earned Income Credit is computed by comparing two amounts in the IRS's EIC table -- an amount based on earned income, and an amount based on your 2020 Adjusted Gross Income (AGI). Whichever of these two amounts from in the table yields the smaller EIC amount will be used.
So while you might use your earned income from 2019, your AGI from 2020 still has to be used in making the comparison. In your situation, your AGI is apparently producing a smaller EIC amount than either your 2019 or 2020 earned income does, and that's what the formula is using.
Please see Worksheet A -- 2020 EIC -- Line 27 in 2020 Instructions for Forms 1040 and 1040-SR to see how the computation works.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Dhughes1990
New Member
woodarr3
Returning Member
Raph
Community Manager
in Events
ale-carrasco87
New Member
jeannettebiddle3106
Level 1