Why is my earned income credit so low in 2021 compared to 2020?

[eriksemail9999]

My earned income was $5k in 2020 and $1300 for 2021.   My income was $40k (2021) this year and last year (2020) I was out of work and only had $8k income.

[DoninGA]

EIC is on a bell curve.  As your income increases you receive less EIC.

[Bsch4477]

Earned Income Credit is more at lower earned incomes and as income grows it reaches a plateau and then decreases as earned income becomes greater. Google eic table 2021 to see how it works.