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@jesmithjr86 wrote:

When I look at EIC Worksheet it shows 2 children eligible

I do not find EIC of 1766 on this table

 

 

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I'm not sure why the worksheet is only showing two children.  Is Schedule EIC showing three?

The program is correctly calculating EIC for 3+ children.  Their Earned income is $3919 ($4217 minus $298).  The chart shows $1,766 for 3+ children for income $3900-$3950.

In answer to your original question, their income is too low this year.  You said last year their income was higher and as you can see in the charts in Publication 596 that higher income results in higher EIC (up to a certain point, then it drops back down).

The same applies to the refundable portion of the Child Tax Credit.  If you look lines 18-20 of Form 8812, you'll see the calculation is limited due to the very low Earned Income.

It seems like everything is correct.

As a side note, are they receiving a large amount of nontaxable income or nontaxable other benefits?  I'm just wondering how they have a family of SEVEN with that extremely low income.