Compare 2019 and 2020 1040's side-by-side to see the difference.
You can get to the Earned Credit Interview by entering "eic" (without the quotes) in the Tools -Search Topics box.
Earned Income Credit (EIC) is paid on a bell curve - starts low for a low income, increases to the maximum as income increases, then phases out as income increases still further until it is gone at the maximum income. You only get the maximum EIC if your income is about midway between no income and the maximum income.
EIC is calculated both on the amount of earned income and your AGI and you get the lessor of the two.
EIC will be found on line 27 on the 1040 form.
The credit is calculated on the EIC Worksheet that can be viewed in the forms mode in desktop versions and print all forms and worksheets in the online versions.
2020 Earned Income and Adjusted Gross Income (AGI) must each be less than:
$50,954 ($56,844 married filing jointly) with three or more qualifying children
$47,440($53,330 married filing jointly) with two qualifying children
$41,756 ($47,646 married filing jointly) with one qualifying children
$15,820 ($21,710 married filing jointly) with no qualifying children
The credit will vary from $0 to the maximum depending on income and AGI see EIC table.
Tax Year 2020 maximum credit:
$6,620 with three or more qualifying children
$5,290 with two qualifying children
$3,584 with one qualifying child
$538 with no qualifying children
Investment income must be $3,650 or less for the year.
EIC Table page 48
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
You must be at least 25 if you do not have a qualifying child, and under 65 years of age at the end of 2020.
See IRS Pub 596 for complete information:
http://www.irs.gov/publications/p596/index.html
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
