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Returning Member
posted Apr 4, 2022 12:16:36 PM

EIC reduced with SSA- entered

My AGI is less than the HoH Widow status,  dependant of $42,158

 

When I enter my W2 wages, my EIC is listed at the Max of $3,618

once I enter my SSA Survivor benefits, the EIC lowers to $3,418

 

I cannot figure out why it reduces by $200.00 when my AGI is less than the max listed above.

 

Anyone else seeing the same thing?

 

(Just to double check, I opened a new file and only entered these two items, plus personal data. no other deductions, credits, etc. and show the same decrease.)

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1 Replies
Expert Alumni
Apr 4, 2022 12:43:17 PM

The EIC is not a fixed amount. It varies with income as a bell shaped curve going up with income till the maximum amount when it starts to decrease with income.

 

When you enter your SSA benefits, part of it is taxable and increases your AGI which makes your EIC decrease as you are on the descending part of the EIC curve.