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It appears Earned Income Credit is based on AGI but turbotax is using taxable income?

From what I read here earned income is phased out if AGI over certain amount? p596

But for some reason it appears turbotax is phasing out on taxable income not AGI curious if there is a checkbox or something or what would cause this.

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2 Replies

It appears Earned Income Credit is based on AGI but turbotax is using taxable income?

Both your earned income (not taxable income) and AGI have to qualify for the EIC

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-ea...

Hal_Al
Level 15

It appears Earned Income Credit is based on AGI but turbotax is using taxable income?

The earned income credit (EIC) is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2022 EIC table at:

https://www.irs.gov/instructions/i1040tt#idm140702909059168

 

TurboTax does not use taxable income.  It may appear that way because  your earned income and taxable income are close to the same. 

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