Why is my earned income credit so low in 2021 compared to 2020?
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.
02523
2 Replies
DoninGA
Level 15
Mar 14, 2022 12:57:49 PM
EIC is on a bell curve. As your income increases you receive less EIC.
Bsch4477
Level 15
Mar 14, 2022 1:00:00 PM
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.