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Best answer by Hal_Al

TurboTax is doing it correctly.

The earned income credit is first calculated (actually looked up in a table) on your earned income; then it is calculated on your total income (AGI)*. You get the lesser of the two calculated EIC numbers. See the 2018 EIC table at:

https://taxmap.irs.gov/taxmap/instr/i1040gi-015.htm

*your earned income + your unemployment + any other income


6 replies

Hal_Al
Level 15
Hal_AlLevel 15Answer
Level 15
June 6, 2019

TurboTax is doing it correctly.

The earned income credit is first calculated (actually looked up in a table) on your earned income; then it is calculated on your total income (AGI)*. You get the lesser of the two calculated EIC numbers. See the 2018 EIC table at:

https://taxmap.irs.gov/taxmap/instr/i1040gi-015.htm

*your earned income + your unemployment + any other income


Hal_Al
Level 15
Level 15
June 6, 2019
What you're suggesting, using an example,  is that somebody (single, 1 kid)  with $40,000 wages is not eligible for EITC but somebody with $30,000 wages plus $10,000 unemployment is eligible.