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taibelina
New Member

I can't figure out why my EITC is limited. It looks like I make less than the cap with one qualifying child.

My earned income is $48,016 and it says the max before you're capped is $49,084.
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2 Replies
MinhT1
Employee Tax Expert

I can't figure out why my EITC is limited. It looks like I make less than the cap with one qualifying child.

Your earned income (AND your Adjusted income) have to be both below $49,084 to qualify for the Earned Income with 1 qualifying child.

 

Please read this TurboTax article for more information.

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I can't figure out why my EITC is limited. It looks like I make less than the cap with one qualifying child.

The earned income credit is calculated on a bell curve.  You do not get the maximum amount for any amount of income.   Since you are close to the limit, your EIC will be a fairly low amount---somewhere around $170.

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-ea...

 

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

 

Look at the table for EIC on IRS Pub. 596---page 3

https://www.irs.gov/pub/irs-pdf/p596.pdf

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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