Tax due increased when I said I lived out of the country for more than 6 months

[cmathieson]

In the "Earned Income Credit" section it asked "Did you live in the U.S. for more than six months in 2020?" I answered no, and my tax due rose by almost $200. I can see why this might disqualify me from getting the credit, but I don't understand why it adds so much to what I owe. If anyone has an explanation I would really appreciate it. Thank you!

[BillM223]

This is Rule 14 for the EIC - you cannot have lived outside the US more than half the year, to be eligible for the EITC. See IRS Pub 596, page 17.

Also did you try to add form 2555 (foreign earned income exclusion) to your return? That disqualifies you from the EITC.

Check the Interactive Tax Assistant at the IRS for EITC.

$200 is a small amount for the EITC, but if that is what the initial amount for the EITC was, then when you got disqualified, then all of that would be added to your tax due.

[cmathieson]

Hello Bill, thank you very much for your response. Just to confirm, the EITC is automatically included in the taxes due/credits from the start and then it's removed if it's determined that one doesn't qualify for it? I understand why living out of the country disqualifies me from receiving the credit, I'm just confused about why my taxes due increased when I said I had lived outside of the U.S. Thank you!

Sincerely,

Claire