Hello TurboTax Team, With my current AGI, I'm qualified to receive an EIC Credit, but TurboTax program dese not recognizes my AGI $ amount. What should I do?

[MaryM428]

AGI is just one of the factors that do into calculating whether you are entitled to the earned income credit and how much your credit will be.  Here is an article that goes through all of the qualifications to receive EIC.

Earned Income Credit

[jkim0002]

Thanks for the info, 

The turbo tax system tells us that we are not entitled to receive EIC, but we are with 3 qualifying children with AGI less than the limit. How can we resolve this issue? Thanks

[jkim0002]

In addition to EIC, 

Turbotax said, " It turns out you don't qualify for this credit." because my earned income is above the limit of EIC.

From IRS, AGI should be considered instead of 'earned income'. My current AGI is less than the limit of EIC. 

Can you please explain why system uses my 'earned income' instead of 'AGI'...?

Thanks

[DawnC]

If you believe you qualify but are not getting the credit, start by verifying your AGI and your dependents' statuses.   If one of your 3 dependents is not qualifying, then you may be looking in the wrong spot on the EIC chart.  If you are using the AGI chart for 3 EIC dependents, but only 2 are qualifying, you may not qualify for the credit.   If TurboTax is telling you that you don't qualify, the reason is usually that you are counting dependents that don't qualify...2 questions

1. What is your AGI on Line 11 of your Form 1040?
2. And what were the ages of your dependents on 12/31/20?   

To qualify, the child must be:

• Your son, daughter, stepchild, adopted child, or descendant.  (Verify that your dependents are not listed as ''Other Dependents'')
• Your brother, sister, stepbrother, stepsister, or a descendant of one of these.
• Age 18 or younger as of the end of the year (unless he or she is a full-time student, in which case the student must be 23 or younger). Exception: A person who is permanently and totally disabled at any time during the year qualifies, no matter how old.
• A resident with you in the United States for more than half of the year.   

Other items to verify for EIC:

• You have earned income from earnings (for example, from a job, your own business, union strike benefits, certain long-term disability benefits).  
• You did not receive more than $3,650 in interest or dividends or income from rentals, royalties or stock, and other asset sales during 2020.
• You, your spouse, and your children, if applicable, all have Social Security numbers.
• You are not excluding any income you earned in a foreign country on your return.
• You are a citizen or resident of the United States.

[DawnC]

When figuring the Earned Income Credit, both AGI and earned income are used.   For 2020, you are allowed to use your 2019 earned income if it was more in 2019.   However, even if you use the lookback provision, the credit is still calculated using 2020 AGI.     See this EIC worksheet; notice that both AGI and earned income are used.