EITC and Unemployment

[itsdrewdollar]

Can someone explain to me how unemployment benefits do not count as earned income but unemployment benefits count against the EITC earned income limitations?

Example: I made more money collecting unemployment benefits than the EITC threshold allows to receive the EITC credit but if the EITC credit is credited based on earned income and my self-employment $1000 profit then shouldn’t I qualify for the EITC? (Because my self-employment is earned income) I just would like an explanation why it’s not a two way street. Basically saying I made too much to qualify but that money doesn’t count towards it. 

[VolvoGirl]

Both your Earned Income and AGI have to be under the max.

You no longer have to be under 65 to get the EIC if you have no children.   Just over 19.

https://ttlc.intuit.com/community/credits-and-deductions/help/what-are-the-qualifications-for-the-ea...

[KrisD15]

Someone decided that unemployment was household income, and can count for or against the Earned Income Credit. 

There are people on the other side, GETTING the EIC BECAUSE they can claim the unemployment as earned income for the credit. 

It is not considered "Earned Income" in respect that people do not pay FICA or self-employment tax on it. 

I think the INTENT was to allow MORE people to get the credit and to compensate for the jobs lost because of Covid. Otherwise someone on unemployment, who normally works and did work part of 2021, might have too low an income and not get any credit. 

It doesn't work out for everyone.