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EIC Bug?

Dusty2
Level 7

Not sure if I am doing something wrong, misunderstand something or there is a bug in the program.

Single Parent

Head of household

Has a dependent child who lives with them all year - Age 15

W-2 income of $40,155

Earned income for EIC from 2019 return $27,648

I checked the box on the Earned Income Credit Worksheet to use 2019 earned income.

Checked no to the question "Is taxpayer or spouse qualifying child for EIC for another person?

The Earned Income Credit Worksheet line 7 is $40,155 not $27,648 so they are only receiving $317 of EIC.

Am I doing something wrong? 

Do you need any additional information?

Thanks,

Dusty

0 Cheers
2 Comments 2
garman22
Level 13
Level 13

2019's income is used if income in 2021 is lower than 2019. They will allow you use of 2019 for the higher EIC. 

ljsmith2
Level 4

The ability to use the 2019 earned income only works if their income went down in 2021.

It will also explain that on the EIC worksheet. If their income went up during the pandemic (in 2021), they will not be able to use the 2019 option.