Were there changes to the Earned Income Credit

[Minvest]

Client's W-2 in 2021 and 2022 were identical:

Wages: $16800, Federal Tax withheld: $667

Age: 54, No Dependents

No other income, no other documents.

2021 EIC was $705

2022 EIC $0

I'm using Proseries Basic software

What am I missing....what changed?

Thank you!

[Just-Lisa-Now-]

Print the 2 returns out and compare them side by side, line by line...is EITC the only number that different?

[sjrcpa]

Work thru the 2022 EIC worksheet and form, with instructions in hand.

[Minvest]

Yes.

I did a 2021 and 2022, side by side comparison

Only numbers that changed were:

Sales tax deduction increased by $110

Income Tax decreased by ($40)

[TiredFarmer]

Tax Year 2022 (Current Tax Year)

Find the maximum AGI, investment income and credit amounts for tax year 2022.

Children or Relatives Claimed Filing as Single, Head of Household,

or Widowed Filing as Married Filing Jointly Zero One Two Three

$16,480	$22,610
$43,492	$49,622
$49,399	$55,529
$53,057	$59,187

Investment income limit: $10,300 or less

Maximum Credit Amounts
The maximum amount of credit:

• No qualifying children: $560
• 1 qualifying child: $3,733
• 2 qualifying children: $6,164
• 3 or more qualifying children: $6,935

Tax Year 2021

Find the maximum AGI, investment income and credit amounts for tax year 2021.

Children or Relatives Claimed Maximum AGI
(filing as Single, Head of Household, Widowed or Married Filing Separately*) Maximum AGI
(filing as Married Filing Jointly) Zero One Two Three

$21,430	$27,380
$42,158	$48,108
$47,915	$53,865
$51,464	$57,414

Investment income limit: $10,000 or less

Maximum Credit Amounts
The maximum amount of credit you can claim

• No qualifying children: $1,502

• 1 qualifying child: $3,618

• 2 qualifying children: $5,980

• 3 or more qualifying children: $6,728

* Taxpayers claiming the EITC who file Married Filing Separately must meet the eligibility requirements under the special rule in the American Rescue Plan Act (ARPA) of 2021.
 

[TiredFarmer]

You can look at tables on irs.gov and see better.

16,800

16,850

0

[Just-Lisa-Now-]

Yep, those beefy credits from the days of Covid are gone!

[garman22 · Accepted solution]

Yep, they beefed them up for one year. 

[Minvest]

Thanks for all responses....much appreciated!